BA, Unite trade proposals for cabin crew concessions
Posted 13/04/2009
British Airways and cabin staff represented by Unite sparred over the carrier's proposed cost-cutting measures last week, with the union proposing Friday a "major package of negotiated efficiencies, temporary cost savings and deferred payments worth millions over the next two years."
The airline expects to report a fiscal 2008-09 operating loss of approximately £150 million ($220.3 million) and also expects severance costs of £75 million (ATWOnline, April 6). Operating loss for the current year is expected to be similar.
Early last week, BA issued a series of proposals asking its 13,500 flight attendants to accept a reduction in annual leave to 34 days from 36, a two-year pay freeze and a reduction in long-haul bonuses as part of an effort to lower its £567.9 million flight operations budget by more than 14%, The Times reported. The carrier also wants to establish different work rules for new hires (including promotions and raises based on merit rather than seniority), reduce long-haul layovers and remove one flight attendant from its 777s, according to the paper.
"Like all airlines, we have been hit by a worsening economic crisis and to respond to this we need to improve productivity and performance across the airline," BA said. "Rather than present any firm proposals we have put together a list of ideas and opportunities on how we could reduce cabin crew costs."
In response, Unite said it offered a package "aimed at securing both the long-term security of employees and industrial peace during current difficulties" at a meeting last week with CEO Willie Walsh and other board members. The union was clear that any concessions would be temporary.
Among the measures proposed by Unite are a companywide deferral of pay awards for the current fiscal year, deferral of incremental pay increases for those earning basic pay of more than £14,500 and reduced work hours aligning with BA's schedule cuts. It called the measures an "interest-free investment by BA's workforce" that "must be repaid as the company returns to operating profitability in the near future." Unite National Secretary for Aviation Steve Turner said BA's fortunes "will improve alongside an upturn in the global economy."
Unite cautioned that it will "not accept wholesale restructuring of the business smuggled through under the guise of the global slump." BA did not respond publicly to Unite's announcement.
by Brian Straus
Originally published 14 Apr 2009 at: http://feedproxy.google.com/~r/AtwDailyNews/~3/gakLbYMAAPw/story.html
