British Airways

Date | Event | Source | May 12, 2011 | BA on the up after dispute dealBritish Airways has achieved a victory, albeit, at a considerable cost, that should stand it in good stead after cabin crew backed a deal to end the longest and most bitter dispute in the transport sector for years.Union had achieved an “honourable settlement” and pledged to work in a “spirit of partnership” to repair damage to the airline’s brand.Keith Williams, BA’s recently appointed chief executive, for being “strong, brave and courageous” in reaching the agreement.The settlement includes a two-year pay deal worth up to 7.5 per cent. It comprises an inflation-linked rise of up to 4 per cent this year, including 1.1 per cent dependent on productivity savings, and 3.5 per cent next, including 0.5 per cent dependent on savings.The dispute started over cost-cutting but developed into a row over travel concessions removed from Unite members who went on strike, as well as suspensions and dismissals.
The union was powerless to stop the original cause of the dispute – 1,700 full-time job losses among cabin crew as BA removed at least one crew member from most long-haul flights, saving £63m a year.It has also hired 700 new crew in its so called “mixed fleet” on certain routes, earning £17,000 a year on average compared with £29,000 for existing Heathrow cabin crew. That programme should yield £160m annual savings within a decade.“I think there is no question that it is a victory for British Airways but it comes at a cost,” said Douglas McNeill, at Charles Stanley Securities.Andrew Lobbenberg at RBS said “the economics of the dispute were won by BA about nine months ago” and it had gained “the credibility of being firm”. | Unread (Ft.com)Public View, Banks | May 12, 2011 | Union welcomes BA deal that avoids humiliationUnion officials accused the company of “holding a gun” to the heads of staff and in December that year, cabin crew announced a 12-day strike over Christmas after a 9-1 vote in