PPRuNe Forums - View Single Post - IAG: BA restructuring may cost 12,000 jobs
Old 1st May 2020, 18:47
  #204 (permalink)  
ILS27LEFT
 
Join Date: Aug 2002
Location: Europe
Posts: 4
Likes: 0
Received 0 Likes on 0 Posts
Willie Walsh not attending

"Dear Allison, Thank you for your message. I am incredibly sorry that, at this time of great uncertainty for the nation, British Airways, and their parent, IAG, have made a decision to put thousands of employees through a consultation with a view to 12,000 redundancies across its workforce. From a local perspective, and not always appreciated by all constituents, I have been a vocal supporter of Gatwick and of BA at Gatwick. The constituency I represent has relatively low wages compared to the regional norm. Those who work at Gatwick are able to boost our local economy. This is even more important at this current time. Talk of BA withdrawing from Gatwick would be devastating for our local economy and our ability to connect with the globe. From a national perspective, I chair the Transport Select Committee. Next Wednesday morning, we are holding our first session on our Inquiry around Aviation and the impact from Coronavirus. Details are below: https://www.parliament.uk/business/c...ansport-19-21/ We did invite Willie Walsh, of IAG, to attend as a witness but he is tied up with a board meeting. This is unfortunate because Willie is not backwards in coming forwards. Instead, Airlines UK, the umbrella organisation for UK airlines, which includes BA, will give evidence alongside the Chief Executive of Heathrow and others. In the next session, on 20 May, we will hear from the unions and the Aviation Minister. We will be asking about the planned redundancies. Of key concern to me is whether BA are using this epidemic environment to restructure. I appreciate that there is huge uncertainty, and a view that the market may not return to pre-Covid times until 2023 (if it does). BA, and it’s parent, have to prepare for this. The furloughing scheme will not last indefinitely but BA have been fast out of the blocks if this is just a reaction to the Covid 19 epidemic. My concern on this front is not helped by the news, which has just now broken, that IAG has just taken out a €1 billion Spanish state-backed loan. Previously, Willie Walsh lambasted other airlines for looking for state aid. With £7billion of reserves, IAG stated that it would address internally with ‘self-help’ before it resorted to Government aid. It is important that this ‘self-help’ is not job losses in the UK, as opposed to the position in Spain where fewer job losses are expected and the company has sought Government finance. I hasten to add that it is my understanding that IAG/BA have not come to the UK Government or Bank of England to ask for aid before making the announcement on redundancies. There are many questions which require answers from BA. As a result, I have sought permission from my committee members to ensure that BA do appear before the Transport Select Committee. If Willie Walsh is tied up then he should run an organisation where he can delegate someone to speak on his behalf. This is all moving at pace but I hope it demonstrates that I will use my local and national voice to hold British Airways to account. I have also reached out to other MPs to ramp up the pressure. You will be able to watch our virtual Select Committee proceedings, either on Parliament TV or BBC Parliament (which tends to catch up). With best wishes,"

Last edited by ILS27LEFT; 1st May 2020 at 21:06.
ILS27LEFT is offline