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7,000 BA staff agree to pay cuts

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Published Date: 26 June 2009
ALMOST 7,000 British Airways staff have agreed to take voluntary pay cuts, including 800 who said they would work unpaid for up to a month, the airline announced yesterday.
Of the 40,000-strong workforce, 6,940 employees had volunteered by Wednesday for unpaid leave, part-time working or unpaid work, which the company said would save up to £10 million.

Chief executive Willie Walsh, who has announced that he will wor
k unpaid for July, said: "This is a fantastic first response. I want to thank everyone who has volunteered to help us pull through this difficult period. This response clearly shows the significant difference individuals can make."

Options offered included volunteering for one to four weeks' unpaid leave or unpaid work, with the pay deduction spread over three or six months. Staff who have offered to work unpaid will still receive shift allowances and other payments, but will forego their basic pay.

BA said about 4,000 staff had volunteered for unpaid leave, 1,400 will switch to part-time work and 800 put their names forward for unpaid work, while 740 overseas staff also volunteered for the cost-saving drive.

The airline has been looking to slash costs as part of its survival plan after unveiling an annual loss of £400m. About 2,500 jobs have been cut since last summer and the airline wants to shed a further 3,000 posts.

Talks are being held with union leaders to agree a pay and jobs package as part of the cash-saving drive, with Mr Walsh setting a deadline of 30 June for reaching agreement. Around 10,000 of BA's 40,000 staff already work part-time.

Mick Rix, national officer of the GMB union, reacted with anger to the release of the information while negotiations were continuing over cost-cutting at the airline. He said staff had been influenced by the "scaremongering tactics" of the company.



The full article contains 328 words and appears in The Scotsman newspaper.
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  • Last Updated: 26 June 2009 12:39 AM
  • Source: The Scotsman
  • Location: Edinburgh
  • Related Topics: British Airways
 
 

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