EasyJet Faces Union Scrutiny Over Jobs Following Apollo's £5.7 Billion Takeover

Union leaders have pledged to vigorously defend the jobs of EasyJet's 19,000 employees following the budget airline's acceptance of a £5.7 billion takeover offer from U.S. private equity firm Apollo. The deal, finalized last week, has raised concerns among staff and unions about potential cost-cutting measures and their impact on both employees and customers.

Unite, a union representing thousands of EasyJet cabin crew, stated its commitment to protecting jobs, pay, and terms and conditions throughout the takeover process and beyond. Sharon Graham, Unite's general secretary, emphasized that the firm's growth strategy must translate into well-paid, unionized jobs. The union indicated it would exercise its full right to submit its views to regulators, suggesting potential strike action if the deal does not meet their terms.

Analysts have warned that Apollo's ownership could lead to cost-cutting initiatives. This has sparked fears among EasyJet's workforce about the future security of their roles. Speculation also suggests EasyJet might increase revenue from ancillary charges, such as fees for luggage, seat selection, and onboard food and drinks, similar to strategies employed by other budget carriers like Ryanair.

While Apollo emerged as the winning bidder over rival Castlelake, the transaction faces further scrutiny. Reports indicate that the European Union is preparing to review ownership rules, particularly for companies like EasyJet that maintain a subsidiary in Austria to continue operating within the bloc post-Brexit. This review aims to prevent foreign investors from gaining control of key European businesses. EasyJet's acquisition by Apollo would add to a recent trend of British firms being taken over by foreign entities.