Airline Labor Unions Killing their golden goose. Frederick Dubinsky responsible for the bankruptcy of United Airlines, High Union costs destroy airline Jobs
what happened before
BA Cabin Crew Strike Ballot 2009 update - British Airways'
Walsh press release
A message from Willie Walsh
You may have heard that Unite, the union that represents our cabin crew, has threatened strike action between December 22, 2009 and January 2, 2010.
Let me say immediately we will do everything we can to assist you at what will clearly be a very difficult time if strikes go ahead. We are working hard on contingency plans, and will announce them as soon as they are finalised.
We are also urging Unite to return to the negotiating table. There are important issues on which we have asked them to put forward new ideas.
Strike action is completely unjustified.
It's no secret that British Airways is in financial difficulty. Like other global airlines, we have been hit extremely hard by the slump in business travel brought on by the world recession.
We lost £400m last year and will lose at least as much this year. These are the worst financial results in our history. Our revenue is down £1 billion, so reducing costs is absolutely essential even to begin heading back toward profitability and long-term survival.
Many of my colleagues understand this. Our pilots have agreed a pay cut. Our engineers have agreed more efficient ways of working. A third of our managers have accepted voluntary redundancy. And nearly 7,000 colleagues volunteered for salary reductions because they wanted to help this great British company in a time of need.
But our cabin crew union has refused to engage in this process seriously.
My admiration for the professionalism and skills of British Airways cabin crew is second to none. They are an absolutely vital part of our airline, and a great asset. But they have been disgracefully misled by Unite as to how our company-wide cost reduction programme would affect them.
Unite claims that we are trying to "intimidate workers into accepting poorer contracts", forcing crew to leave the company, and "attacking" their pay and allowances.
This is fiction. Our package involves no reduction in terms or conditions for existing crew. Our Heathrow crew will remain the best paid in the industry. Average earnings for cabin services directors are £56,000 on long-haul and £52,000 on short-haul. For junior crew, they are £35,000 and £26,000 respectively. According to the Civil Aviation Authority, average costs of BA crew are twice those of their Virgin Atlantic counterparts.
In fact, despite our financial backdrop, more than 10,000 of our cabin crew will receive pay rises of between two and seven per cent this year, and again next year. In the worst recession since the Second World War, these are increases many employees in other walks of life can only dream about.
We have created opportunities for voluntary redundancy, and more than 1,000 crew have taken that option. Similarly, more than 3,000 crew have volunteered to switch to part-time working.
To accommodate these requests, we have made a small change in our onboard crew numbers from Heathrow, without affecting service standards. Our Gatwick flights have been operating on equivalent crew numbers for years - with Unite's agreement.
Unite's chief complaint seems to be that we are "imposing" the changes at Heathrow. The truth is we had been discussing them with the union for nine months but, despite all the evidence of the company's (and the industry's) financial plight, Unite would not be realistic about the clear imperative to reduce costs.
We could not wait any longer. We moved ahead, making sure that our changes were squarely based on voluntary choices for individuals.
Unite claims the changes affect contractual terms and conditions. We believe they do not. The union failed to gain an injunction to prevent their introduction, but a full court hearing to settle the contractual question has been set for February 2010.
We do not understand why Unite is threatening you with disrupted travel plans now over an issue that the courts are preparing to resolve in a few weeks.
A strike can achieve nothing except huge upset and inconvenience for you. We will do our best to provide as much help and support as we can.
Willie Walsh
Last Updated: 15:22 - 14 December 2009