Airline Looks To Shed 3000 "Redundancies"

Unions representing the cabin crews and administration staff are continuing talks with British Airways, with a June 30th deadline for an agreement set by the airline.

BA wants to cut 3000 redundant positions, 2000 from cabin crew and the remainder from check-in and administrative staff, along with changes in working rules. While the unions have not rejected the idea out of hand, they do disagree with BA's assertion that the cuts should be permanent.  The unions, mainly Unite and the GMB, say they should only last until the current recession is over.

Air and Business Travel News reports that BA has already come to an agreement with BALPA, which represents 95% of the pilots flying for BA. Pilots gave a 2.61% pay cut and a 20% reduction in flying hours as concessions during those negotiations. Another  part of the package increases pilots' annual duty hours, brings in a shorter turn around time on short haul flights and cuts crew on some long haul flights. The changes will save the airline about $16.5 million a year.

In return the pilots become part owners of the airline. Beginning in June 2011, pilots will receive BA shares worth $21.5 million if company targets are reached.

According to the publication, BA said last week that about 17% of it's workforce of 6,940 staff had agreed to take pay cuts, work for free, or take a month furlough.

FMI: www.ba.com