Sign in Subscribe
Airlines

British Airways Workers Reject Cost-Cutting Plans

Strategic Insights

— 1 min read

British Airways employees, including over 2,000 cabin crew members, have sent a strong message that they will not accept a pay freeze and job cuts that would affect thousands of workers. The workers, meeting near Heathrow Airport, expressed concerns over the potential sackings of staff who resist the cuts through industrial action. Union officials have warned of compulsory redundancies among some workers, including cabin crew, and have accused BA of having a pre-arranged strategy for conflict.

Key Takeaways:

  • A mass meeting of British Airways workers rejected the airline's plans to cut costs by axing thousands of jobs and freezing pay.
  • Over 2,000 employees, including cabin crew, sent a "strong message" that they are not prepared to accept the cuts.
  • Union officials have warned of compulsory redundancies among some workers, including cabin crew, and have accused BA of having a pre-arranged strategy for conflict.
  • BA has announced plans to cut 3,500 jobs and freeze pay for thousands of workers, with union officials claiming that they could face compulsory redundancies if they resist through industrial action.
  • The airline's unions have been in talks with management since the June 30 deadline to reach a deal on the job cuts and pay freeze, which passed without an agreement.
  • Union officials have expressed concerns over the threat of compulsory redundancies and the potential for industrial action.
  • The airline's chief executive, Willie Walsh, has commended the "fantastic" response from staff who have volunteered for pay cuts, including 800 who are willing to work unpaid for up to a month.
  • Unions have accused BA's managers of bullying staff into signing up for pay cuts, a charge denied by the airline.
  • BA has made losses of £401 million last year and is reportedly losing up to £3 million per day.

Statistics:

  • Over 2,000 European cabin crew employees rejected the airline's cost-cutting plans.
  • Nearly 7,000 staff had applied for voluntary pay cuts, including 800 who are willing to work unpaid for up to a month.
  • The airline plans to cut 3,500 jobs as part of its cost-cutting measures.
  • BA lost £401 million last year and is reportedly losing up to £3 million per day.
  • 800 staff are willing to work unpaid for up to a month as part of the airline's cost-cutting measures.

Sources:

  • International Business Times, 2009.
  • BBC News, 2009.

Read more