The legal dispute between Air Baltic and Swiss International Air Lines regarding their wet lease arrangements has raised concerns about compliance with Swiss labor laws, specifically regarding wage standards.
Air Baltic allegedly pays its cabin crew significantly lower salaries compared to their Swiss counterparts, prompting scrutiny from labor unions and regulatory authorities.
The Canton of Zurich's Office of Economic Affairs initially deemed the wet lease arrangement illegal, but this decision was later overturned by the State Secretariat for Economic Affairs (Seco), classifying it as a secondment.
Ongoing investigations and potential financial implications include retroactive wage payments and fines for violations of the Posted Workers Act.
Despite the legal uncertainties, Swiss plans to continue relying on Air Baltic's services, extending their partnership until 2028.
Swiss has distanced itself from the legal proceedings but has supported Air Baltic in defending against allegations of wage dumping.
The broader implications of this case extend beyond the two airlines, reflecting growing concerns in Switzerland about protecting the labor market from potential exploitation.
The outcome of this case could serve as a precedent for future wet lease agreements and international labor practices in the aviation industry.