Here we go, including the usual BASSA b*****ks and posturing about pilots:
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TALKS UPDATE 19TH MARCH
Mar 19th, 2009 by admin
Negotiations on cost-cutting have today resumed.
For the last week it has probably appeared to have all gone away, or at least we could have hoped it had......It categorically has not.
A joint meeting of all the Unions from across the airline that are involved in cost cutting measures was held on Tuesday and information on each of their targeted savings was shared. Last week British Airways had declined to share this information with us. It is apparent that cost saving targets are not equal but vary widely across the airline. For example, the Pilots' budget is £445 million and they face no cuts. Their only input is to not incur further costs over the next two years. Their projected increase is £13 million and this will be their contribution. The vast majority of other areas will achieve savings by quite a severe headcount reduction but not by changes to terms and conditions ("restrictive practices"; as Willie Walsh prefers to call them).
British Airways has now completed their expectations of the cost cuts for cabin crew. To remind you, the headline facts are again recapped below:
BA states that IFCE costs are £567.9 million per year. Most of that cost is salaries (98.9%).
BA wants to cut this by £82 million (14%) over the next two years, commencing April 1st 2009. This equates to approx £6,000 per person directly from earnings and/or costs. They propose this to be achieved by two separate but linked phases. The "new fleet" would still only save £35 million in its first two years, the remaining £47 million would need to come from existing agreements for current crew i.e. you.
Until now we have been unable to publish this "list" to you due to a confidentiality commitment specified to us when it was received. Our confidentiality commitment regarding this has ended and we have received legal clearance to reveal details to you. The following is a list of proposed and possible cost saving measures to reach the specified target, exactly as they were given to us.
What is acceptable or otherwise, is of course the subject of ongoing negotiation but from the list below you will be able to see these are substantial and major issues that will need to be faced. They affect all current crew, no matter which base or agreement you currently operate. It is not just a case of "Oh there's a new fleet coming but it won't affect me"; - it will.
Proposals for a New Fleet at LHR: Not for current crew unless joining the fleet
A low-cost fleet based on a low cost model (Almost identical to the document leaked by BASSA at Christmas).
BA aims to achieve this in the next 2 years. Approaching 1000 crew have already been trained and placed in a holding pool.
It will have over 2000 plus crew operating within two years
Market rate paid Cabin Crew in line with virgin plus 10%.
Fleet will consist of mixed flying on Airbus, 777, 747 aircraft.
Crew will consist of 3 new grades, Main Crew, Supervisor and Lead Supervisor. Not CSD, Purser and main crew and NOT to current levels.
No ETP, long-range, back-to-back or destination Payments or other variable shorthaul payments etc.
A fixed hourly rate.