The mayor of Copenhagen has banned the city's 45,000 employees from using Ryanair on business even if it is the cheapest alternative.
The reason is one that we have not seen very often as a determinant of travel policy, namely social dumping. The mayor, Frank Jensen, reportedly wrote on Facebook that the city of Copenhagen does not accept social dumping and therefore would not do business with companies that don't offer their own employees proper salaries and working conditions.
The European Commission describes social dumping as a situation 'where foreign service providers can undercut local service providers because their labour standards are lower'.
Jensen is objecting to the level of wages paid by Ryanair to its staff and the lack of a collective bargaining agreement in Denmark.
Copenhagen's mayor made the decision so it does not support 'social dumping'. ©iStock/Sean PavoneThe Copenhagen edict follows bans imposed on Ryanair by several other Danish municipalities. For its part Ryanair has countered that the Danish are doing this to encourage the use of the home carrier, SAS.
In a world where travel policy is increasingly driven by cost and 'value for money', the move is intriguing, maybe not unique but undoubtedly likely to grow.
As RFPs increasingly ask suppliers about their policies for the environment and employee diversity, it is not surprising that employee welfare will also become an issue. Many companies pride themselves on having a brand that is associated with treating people well and fairly. So to be seen to be doing business with one that allegedly isn't could cause a company – or a public sector body - reputational damage.
For example, last summer a protest about Brunei's anti-gay legislation included a boycott of properties in the Dorchester Collection, a hotel group owned by the Sultan of Brunei. Given that these properties include such iconic luxury names as London's Dorchester and Paris's Meurice, it didn't affect many companies but the principle is one to note.
In a world of ever increasingtransparency there will be a growing demand for companies trading in spheres where best practice is expected also to share those same values. Points are going to be awarded to suppliers who include employee welfare in their own businesses.
Cost to a company isn't measured only in pounds.