BA talks go on as deadline looms

Airline seeking 3,000 redundancies

Talks were still going on last night (June 29) between BA and unions representing cabin crew and administration staff over the carrier's demand for up to 3,000 redundancies.

The airline has set a deadline of today (June 30) for a completion of the negotiations.

It wants not only job losses - 2,000 among its cabin crew and 1,000 from check in and administrative staff - but also changes to working conditions.

One area of dispute is that BA wants these changes to become permanent while the unions,  mainly  Unite and the GMB, say they should only last until the current recession is over.

Willie Walsh, the carrier's ceo, has said it is in a battle for survival and has asked staff to accept pay cuts or work for nothing for a month.

BA has already reached agreement with Balpa, the pilots' union over a pay cut which will save it £26m a year.

The union, which has 95% membership among BA's 3,200 pilots, has recommended they support the deal. The pilots are currently voting on it and the result should be know at the end of next week.

Under the agreement, the pilots will take a 2.61% pay cut and a 20% reduction in their flying time allowance.

This part of the deal will save BA £16m a year.

The second part of the deal will increase pilots' annual duty hours, bring in a shorter turn around time on short haul flights and cut crew on some long haul flights. This will save £10m a year.

In return the pilots will, from June 2011, receive BA shares worth £13m if set company targets are reached.

The pilots will not be able to sell their shares for three years.

The package also allows for 78 voluntary redundancies.

BA said last week that 6,940 staff - 17% of its 40,000 workforce - had agreed to take pay cuts, work for nothing or take unpaid leave for a month.

About 800 said they would work for nothing. The majority have opted for unpaid leave.

Mr Walsh said it would help achieve as much as £10m in savings.

Mr Walsh and his chief financial officer Keith Williams have both said they will work for nothing in July. In Mr Walsh's case this will mean forgoing £61,000.

The moves come as BA and most other major airlines are suffering major losses through a drop in demand caused by the recession and from rising fuel prices.

BA posted a £401m pre-tax loss for the year ending March, 2009.

www.ba.com