Thursday, 12 July 2018

Ryanair & employment-related disclosures

As a lot of people in my world know, there are a number of initiatives underway to try to improve disclosure by companies of information related to employment practices. This is in response to blow-ups at a number of companies that have had controversial labour practices, such as heavy reliance on contingent/indirect employment.

So it may come as a bit of a surprise that one company that has faced a lot of scrutiny, and more recently some significant problems, as a result of its employment practices actually discloses a bit less data that some investors used to find useful than it used to.

Here is an excerpt from Ryanair's 2011 annual report:

Here is the same section from Ryanair's 2012 annual report:

And here is the same from the 2017 annual report:

Ryanair seems to have stopped splitting out costs for directly and indirectly employed staff from 2013. Although splitting out the costs doesn't tell you a lot more, it does make clear how important the use of indirect employment is to the company. And anyone who follows it closely will know that this is one of the major issues that Ryanair's contract workforce dislike.

It might be something that investors that engage with the company want to have a look at.

Hat-tip: JB

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