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Old 30th Mar 2010, 17:17
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Entaxei
 
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Possibly some similarities ??

Computer Industry style comparison

If you are running or take over a company which is suffering from previous bad/weak management and belligerent/militant trade unions, the situation you are in must be one where current working practices are very restrictive, costs/salaries are high, the company is overstaffed and the trade unions are making/interfering with management control/decisions

The only way forward is to restructure the company in all aspects - for this you need the understanding and assistance of the unions. If the only response that you receive from the unions is threats, demands, and then a strike, what are the ways forward left open to you - surrender or fight.

Regardless of the legalities, fire the striking staff, offer to rehire - but cherry pick those that are - good at their job - not militant unionists, once employed remove the restrictive working practices and increase the wages, the cost savings will pay for it, allocate an amount to meet legal costs and awards to those staff who are not re-employed. Firing the staff on strike may well be illegal - but - as the union had not attempted to help the company and the staff had decided to strike - driving the company into an even worse situation - it is unlikely that a court would have any real sympathy with the union or strikers, would take into account the improved situation of those re-employed and therefore the company. The resulting individual court cases and payments awarded would take some time, possible years and, it is unlikely that the court would award a large amount.


Cull your management team, don't use them on any union negotiation as they have already lost any authority on previous situations, promote new blood from within (if its available!), hire new human resources manager and director, appoint new 2nd and 3rd I/C. In changing management team -re-organisation of company and department structure, possibly a few early retirements, changes of responsibility, accurate performance evaluations, would take care the changes needed - all perfectly legal. Any manager that cannot give a good performance because of unions needs replacing.

In creating more efficient ways of working, also ensure that staff in each department have more responsibility for their work seeing a job through from start to finish, this gives a sense of being part of MY company, having a pride in their work, the best providing an upcoming source of supervisors and managers. Always involve the staff in discussions re any changes to their operation, invite suggestions before laying out your ideas - they may surprise you with better methods, remember, they do the job - ALWAYS share cost savings. For fairness, the following must be said -

Unions are not automatically bad, there is a place for them in providing a focal help and representation point for staff. Provided that they fully understand the company operation, its marketplace and needs, they can provide new ideas to the company and work with it to the benefit of all concerned. The problem for the last XXX years is that the majority of unions have a political agenda which is their primary objective.

NB: Labour costs are not always the biggest financial element, aircraft and airport facilities don't come cheap!!.

Last edited by Entaxei; 30th Mar 2010 at 17:25. Reason: spell
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