
Last week, British Airways chief executive Willie Walsh said the airline’s immediate crisis was past and that it was no longer in a “fight for survival”.
This week, the carrier announced that up to 1 700 cabin crew could lose their jobs. Bosses are also mulling the possibility of a two-year pay freeze for staff who survive the cuts.
The result may be industrial action which would seriously threaten the airline’s so far fragile recovery.
According to The Telegraph newspaper, BA announced the cuts without agreement from Unite, the union which representsing 14 000 cabin staff, even though talks had been in progress for some months.
This kind of trouble sends tremors through the airline business which is embroiled in its worst crisis ever. BA lost £401m in the last financial year, a sizeable chunk of the £7bn lost by the industry as a whole.
The solution, as always, is to fillet the beast, paring away the costs that make this such an expensive business to be in. There’s not much the airlines can dp about fuel burn or the cost of airxcraft, so the obvious targets are the staff and, if you’re budget, airline, to extract more revenue from your passengers.
BA’s earlier plans were quite dramatic: 1 000 cabin crew members will take voluntary redundancy while another 3 000 will switch to part time which will have a knock-on effect on working practices. Layovers will be shorter amd cabin crews will be smaller.
In the end, though, you can carve away just so much of excess before the business really starts to suffer. The smell of strike action hangs heavy in the air.
Related posts:
Grant, Waterside
October 9, 2009 at 6:08 pmI wouldnt be too worried about a strike that is planned and meets all legal requirements, that would at least mean that notice is given and while inconvenient, contingency plans could be made.
What would worry me is unsanctioned (by union) wild cat strikes by both cabin crew and ground staff facing draconian changes to their working conditions. If the two departments co-ordinated these in small batches over say a Monday morning and a Friday evening to affect businessmen travellers or over October half term to mess up family holidays, it would cause absolute pandamonium and extortionate cost to British Airways who would have no way of planning for such an occurence.
The cabin crew and ground staff have been pushed to the absolute edge by a dictatorial management who have left them no option but to respond in the only way they can.
If something like this were to happen, Willie Walsh would be responsible for single handedly ruining business trips and family holidays!