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British Airways asks staff to work a month for nothing

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Published Date: 17 June 2009
BRITISH Airways staff have been urged to go without pay for up to a month to help the airline's battle for survival.
Willie Walsh, its chief executive, has written to the 40,000-strong workforce with a plea for volunteers to work unpaid or go on unpaid leave.

They include some 240 people employed at BA's engineering centre at Glasgow airport, and up to 14 custom
er service managers in Scotland.

The remainder of the BA staff based north of the Border – more than 100 cabin crew on its CityFlyer routes to London City airport – are not included, because they work for a subsidiary company.

Mr Walsh, who has already announced he will not draw his monthly salary in July of some £61,250, announced that staff will be able to opt for one-week blocks of unpaid leave or unpaid work, with salary deductions spread over three to six months.

The airline is also seeking more staff willing to move to temporary or part-time contracts, and consider unpaid leave of up to a year.

Keith Williams, BA's chief financial officer, is also working unpaid next month and the airline is also talking to its pilots about taking pay cuts.

Some 1,000 staff have already volunteered to take unpaid leave or switch to part-time work.

A spokesman for BA said: "This will help minimise the financial impact on individuals, while helping to immediately save cash for the business.

"The new unpaid work option means people can contribute to the cash-saving effort by coming to work while effectively volunteering for a small cut in pay."

The spokesman said it was a "personal choice" as to whether staff worked unpaid or took unpaid leave.

Mr Walsh said: "I am looking for every single part of the company to take part in some way in this cash-effective way of helping the company's survival plan. It really counts. Our survival depends on everyone contributing to changes that permanently remove costs from every part of the business."

However, unions said staff were far less able to forgo their pay than the chief executive.

A spokesman for Unite said: "Willie Walsh can afford to work a month for free. Our members can't."

The airline last month suffered a record annual loss in the face of the recession and high oil prices. It also recorded a 7.3 per cent drop in passenger numbers in May, compared to a year ago.

BA, Europe's third-biggest airline by revenue, announced annual operating losses of £220 million and forecast no immediate revival.

Mr Walsh has repeatedly warned that airlines were enduring the "worst trading environment the industry has ever faced".

Further redundancies have been signalled despite a cut in the workforce by 2,500 since March last year.

Last autumn, it closed its cabin crew base at Glasgow airport, with 135 jobs being transferred to London. One in ten Scotland-London flights has been axed because of reduced demand.

Cathay Pacific is among other airlines to have launched similar staff pay cut schemes.

A TOUCH DOWN

THE recession and high oil prices have come at a massive cost to BA.

The airline spent nearly £3 billion on fuel in the year to March, and £78 million on redundancies.

It said it will further reduce capacity by grounding up to 16 aircraft this winter and reducing total seats by 4 per cent.

However, BA claims to have put last year's chaotic opening of terminal five at Heathrow behind it. The carrier said the terminal's 24 million passengers to date loved its "improved punctuality, speedy baggage retrieval and lack of check-in queues".





The full article contains 616 words and appears in The Scotsman newspaper.
Page 1 of 1

  • Last Updated: 17 June 2009 12:32 AM
  • Source: The Scotsman
  • Location: Edinburgh
  • Related Topics: British Airways
 
1

Douglas,

Bathgate 17/06/2009 00:51:47
Dear all,

Hope you're having a great time at work. Who knows where we find the time for "blue skies thinking" what with the pressures of the credit crunch and all.
Well, FEAR NOT!!
I've done all the hard thinking on your behalf and volunteer you to forego remuneration for a fixed period just like me.
If your mortgage provider, power company or even Tesco ask why you can't pay them this month just tell them you're part of that great equal opportunity experiment that is British Airways, I'm sure they'll understand.

p.s. Anyone playing the "stress" card just because they miss one wage will have to answer to me personally. If I can save a few grand for an empty gesture, sorry, rainy day then so can you.
2

danbob,

17/06/2009 01:25:34
Willie Walsh takes a one month salary hit of £61,000, but this leaves him with a cool £671,000 for the rest of the year. I hardly think our Willie will not be able to put bread on the table or pay his gas bill with this amount to look forward too. Typical rich wiz kid hypocrite is Willie Walsh, fu**s a company up and expects the mugs at the bottom to pay. With a gimmicky approach like this he will be soon going into politics.
3

W Smith,

Middle East 17/06/2009 03:29:03
The spongers in Scotland's public sector take note.

While the government guarantees you a nice pension these folks in BA may have to work a month for free to keep this company afloat.

In England, the famous company JCB, asked their employees to take a pay cut which is effectively what BA are asking from their workers.

BTW
Thanks to the tax payer, Mr Salmond is earning the same as Australia's Prime Minister, that's before you take into consideration his wife's final salary pension scheme.

Any chance of Salmond doing a Willie Walsh and taking a pay cut for a year so he can at least taste some of the pressure that Scots in the private sector have to live with?




NAAAAAHH!

I didn't think so. He's to busy prattling on about Trident, stone of destiny, etc.

You know, .. like important stuff.
4

somerferg,

perth 17/06/2009 03:33:54

W Smith - I wondered how long it would take for some clown to have a pot shot at Alex Salmond about this. Why don't you go ahead and blame him for the woes at BA - or better still blame his wife. It seems the better he is at his job (and his is the best) the nastier little nobodies like you become. So how's about YOU stop prattling on (fat chance I suppose?)
5

KampungHighlander,

Jakarta 17/06/2009 06:38:37
Willie should do what a lot of CEO's do when the company is in trouble and take a nominal £1 a year salary and live off his stock options.

To think that his gesture of giving up a months wages from his bloated salary in anyway compares to the hardship a front line member of staff will face by giving up a months wages is ludicrous.

The one blessing in all this is the London Centric policies of BA means that these cuts will have almost no effect on the Scottish Economy.
6

spiderman,

argyll 17/06/2009 07:31:21
This pathetic attempt at cost-cutting just makes you wonder whether BA planes are being properly programmed, maintained, serviced and repaired.
7

Andrew Morton,

Berkshire 17/06/2009 07:56:48
W Smith

Why would anybody consider Mrs Salmond pension? She worked all her days for it. What a strange thing to write.
8

Jay Kay,

17/06/2009 08:44:51
Tell you what they should all do instead is go on STRIKE remember that when people could go on STRIKE and not become a criminal for doing so! see what happens to BA then, didn't they post record profits a year or two back? Maybe not, who needs them anyway overpriced and not good value for money.

Or as posters have said OOR WULLIE should just pay himself a pound a year and live of the millions he already has no!

Work for free eh! hmm nice notion I think they call that Slavery! a bit like working at SKY but not driven so hard.

9

Mike S,

17/06/2009 09:04:42
We now know what the BA stands for when people say I work for BA (B*gg** All)
10

Pete R ,

17/06/2009 10:22:24
People in companies all over Britain are working short time and recognise it's that or redundancies. Why not BA?
11

Strict Ivan Jellicoe,

Renfrew 17/06/2009 10:51:31
Did you hear the one about the Irishman who wanted people to work for a month for nothing?

Why stop there Willie? You are not going far enough. In these difficult financial time, here are my suggestions for your consideration :-
1. Charge them for the privilege of coming into work.
2. Count off duty including weekends as part of staff’s leave.
3. Determine the staff who have contributed and sacrificed most for the company, and then $hit on them from the highest height, after all, they’re soft targets. This is not difficult to do as BA has accrued much experience of this in the past and have it down to a fine art.
4. Determine the staff who are most in financial dept – usually the lowest paid. Keep them as the low paid as they then are the ones least likely top rock the boat. Pile the $hit onto them from the highest height. They are also soft targets.
5. Instead of using the savings to bolster the business, use it to bolster top level bonuses.
6. Include everyone. Don’t exclude the suppliers. Ask the suppliers - fuel, spares, catering, logistics etc - to also supply for a month without charge. It’s in their interest too to keep the business going. I’m sure that they’ll offer an honest opinion.
12

Willie Mor,

17/06/2009 10:52:38
A thoroughly rotten airline and no great loss if it goes down the pan.

As someone who has had to make thousands of business flights I made a conscious effort to avoid BA wherever possible.

Indeed, when travelling internationally, it is much more refreshing to travel through Schipol with carriers like KLM than through the world class dump that is Heathrow.

Anyway, now that BA have de-mobbed services from Scotland,the choice is even easier now.

British Airways and British Airports Authorities - world class shysters.
13

paulr,

edinburgh 17/06/2009 11:19:26
I dont see any mention of cutting the shareholders dividend? oh of course thats a silly idea
14

Tartan Viking,

17/06/2009 12:34:35
#5 Vista.

Willie boy is only taking a cut for 1 month - not a year. His annual salary will therefore drop from £735,000 to a mere £673,750. Gosh! How will he survive?

The problem with big British companies is that the management, particularly the 'senior management' are paid far too much. This is a grotesque situation. In some instances bosses remuneration is thirty or forty times what the average employee gets paid(probably even more in a few cases).Now I for one do not believe most bosses are worth forty times the average worker. Nobody I've ever worked with is worth 40 of me, or anybody else.
Maybe if the bosses were not so bloody greedy many companies would survive a lot longer.

15

The Former Mr. Angry,

Perth 17/06/2009 15:09:02
Mr Walsh is clearly not feeling anough pain himself and thus fails to set an example for his workers. Cutting an already grotesque bank executive salary, no doubt with perks to match to a lightly grotesque level is insulting. The staff should just tell him to stuff it and ask him to take an average salary for a year along with the rest of the board. It's either that or just admit it's a failing business and shut bits of it down.
16

Joe Macdelta.,

17/06/2009 16:08:31
It will be interesting to see what reprisals are taken against those who dont eccept this offer, I fear that everyone employed by BA wont be as loveing towards the Company as he is, will they be first shoved out the door if it comes to redundances, I wonder.
17

Brin 1378,

Lothian 17/06/2009 17:00:59
What a tw.. I bet some wee lepricon whispered that to him when he was sampling the dark brew, Which one of his a... lickers suggested this plan They love the good times the big profits but when the s... hits the fan its the punters that take the flak, Willie Mor is right as well, its a diabolical service on BA late bad attitude, Fly with Luffthansa or Virgin Mr Walsh see how to operate

 

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