Old China Driver
19th May 2006, 21:10
Thought many of you might find this article rather interesting. Quoted from todays London Evening Standard regarding the 48 MILLION pound bonus paid out to their staff this past week. It demonstrates just how selfish and self-serving our management are by comparison. I suggest all of you keep this example to mind when CX try their inevitable 'poor-boy' routine in the coming months....
STAFF WINDFALL AS BA PROFITS SOAR
19 May 2006
British Airways (BA) handed a £48 million bonus to staff as it promised customers it would not be crippled by another summer of strike chaos.
The airline said it was confident of agreement with staff and union representatives over its pension crisis, even though it revealed the scale of the deficit had risen unexpectedly in the last year to top £2 billion.
While pensions funding remains the airline's most pressing challenge, BA still posted a 21% hike in profits to £620 million in the year to March 31. The better-than-expected figure, which sent BA shares up 7%, reflected stronger business travel, the popularity of new routes to India and China and a return to profitability in short-haul after a series of efficiency measures, including job cuts and more self-service check-ins.
BA also overcame a 44.7% hike in its fuel bill to £1.6 billion, a figure it said would rise by another £600 million in the current financial year. That has been offset by more fuel surcharges, with revenues now set to be higher than expected in the current year at between 5% and 6%.
Margins across the group were lifted to 8.3% and triggered a windfall pot of £48 million for almost 40,000 non-managerial staff. The payout will be the equivalent to 1.15 weeks' pay with a minimum figure of around £575.
The Transport and General Workers' Union - the largest union at BA with more than 20,000 members - welcomed the payout, but said the gesture did not resolve underlying issues faced by staff.
As part of plans for the pension deficit, BA has proposed raising the retirement age for pilots from 55 to 60, while for cabin crew it will go up to 65. As well as the deficit, BA is implementing a new cost-reduction programme ahead of its move to Heathrow's Terminal Five.
Last year, a wildcat strike by baggage handlers and other staff grounded flights at the height of the holiday season and left more than 100,000 passengers stranded.
The strikes were in sympathy with the sacking of 670 workers at Gate Gourmet, the catering firm which supplies food to BA.
BA chief executive Willie Walsh said he was confident of avoiding a repeat this year: "We have had good progress in the second half of the year negotiating changes with trade unions and staff. Our customers can continue to book in confidence with BA and that is what they have been doing."
STAFF WINDFALL AS BA PROFITS SOAR
19 May 2006
British Airways (BA) handed a £48 million bonus to staff as it promised customers it would not be crippled by another summer of strike chaos.
The airline said it was confident of agreement with staff and union representatives over its pension crisis, even though it revealed the scale of the deficit had risen unexpectedly in the last year to top £2 billion.
While pensions funding remains the airline's most pressing challenge, BA still posted a 21% hike in profits to £620 million in the year to March 31. The better-than-expected figure, which sent BA shares up 7%, reflected stronger business travel, the popularity of new routes to India and China and a return to profitability in short-haul after a series of efficiency measures, including job cuts and more self-service check-ins.
BA also overcame a 44.7% hike in its fuel bill to £1.6 billion, a figure it said would rise by another £600 million in the current financial year. That has been offset by more fuel surcharges, with revenues now set to be higher than expected in the current year at between 5% and 6%.
Margins across the group were lifted to 8.3% and triggered a windfall pot of £48 million for almost 40,000 non-managerial staff. The payout will be the equivalent to 1.15 weeks' pay with a minimum figure of around £575.
The Transport and General Workers' Union - the largest union at BA with more than 20,000 members - welcomed the payout, but said the gesture did not resolve underlying issues faced by staff.
As part of plans for the pension deficit, BA has proposed raising the retirement age for pilots from 55 to 60, while for cabin crew it will go up to 65. As well as the deficit, BA is implementing a new cost-reduction programme ahead of its move to Heathrow's Terminal Five.
Last year, a wildcat strike by baggage handlers and other staff grounded flights at the height of the holiday season and left more than 100,000 passengers stranded.
The strikes were in sympathy with the sacking of 670 workers at Gate Gourmet, the catering firm which supplies food to BA.
BA chief executive Willie Walsh said he was confident of avoiding a repeat this year: "We have had good progress in the second half of the year negotiating changes with trade unions and staff. Our customers can continue to book in confidence with BA and that is what they have been doing."