Combating posting fraud in the air transportation industry: the European Regulation on the coordination of social security systems needs to be urgently revised.

France’s Retirement Pension fund for Professional Air Crew in Civil Aviation (CRPNPAC), which administers the supplementary retirement pension scheme for air crew in civil aviation, has just reviewed the ruling handed down by the European Court of Justice in a case brought by CRPNPAC against the airline Vueling.

For the first time, a case had been brought before the ECJ regarding the complex issue of the fraudulent posting of air crew members under industry-specific rules.

Although the existence of fraud had been proven beyond any doubt in the case before it, the ECJ sidestepped the opportunity offered it to bring national courts on board to work alongside the social security institutions.

Rather, the court has chosen to stand by its position and affirm the prompt implementation of the “procedure of dialogue” between European social security institutions as an effective and essential prerequisite, even where there is concrete evidence of fraud.

CRPNPAC strongly disagrees with this decision and accordingly requests:

• That work to revise the European regulation on the coordination of social security systems be resumed in order to endow Europe’s national social security institutions with effective anti-fraud mechanisms;
• That the French Government designate a centralized institution that will be tasked with conducting the prior procedure required by the ECJ in order to prevent fraud from proliferating in the air transportation industry.

CRPNPAC’s Chairman Michel Janot has this to say: “The ECJ has decided to totally reject the Advocate General’s opinion in a case where there was no room for doubt. This ruling is a serious wake-up call to our political leaders. Revising the European Regulation on the coordination of social security systems is no longer just a necessity; the ECJ’s latest ruling has made it a matter of urgency. Combating fraud in the air transportation industry is and will continue to be a priority for our institution.”

Press Contact

Sandrine Johnson – CRPN’s Deputy Director in charge of Legal and Institutional Affairs – au 01.41.92.25.