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Old 2nd Apr 2010, 12:30
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Caribbean Boy
 
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How BA is saving £62.5m a year

FlexSRS wrote:
Perhaps someone would be kind enough to confirm some points about the savings?

Earlier, HiFlyer mentioned that the original plan was to take 1 member off to make the savings.

As I understood it, the "1 member off" alone wouldn't be enough to make the £60-70-80m worth of savings on its own, and was also linked to a new disruption agreement and New Fleet. This was on the basis that BillF said the two options were;

(1) Everyone take a share of the pain,

or

(2) Just work a bit harder and new joiners take the pay cut,

2 being the overwhelmingly preferred (if a little myopic!) option.

From the various figures put out by both sides, does anyone have a rough idea of just how much exactly the "1 member off" saves? I can't imagine it's anywhere near the full amount.
Back in early October, the stated objective was to save £140m. However, later that month, it became £127m by March 2011 or £62.5m per annum. It is this latter figure which is the most quoted.

The savings will be made primarily by the voluntary reduction of 1,700 crew by these means:
  • All who requested voluntary redundancy - just over 1,000 - were granted VR and have already gone.
  • All who requested part-time working, which includes a new 33 per cent contract, will be granted this by March 2011. The offer will be on existing fleets, terms and conditions. There were 5,594 crew who registered interest in PTW.
Further savings have been made since by:

Worldwide – effective from 16 November
* One purser position will be removed from all Heathrow Worldwide flights (747,777,767).
* Removal of the additional main crew member on Heathrow long range routes and additional crew member routes

Eurofleet - effective from 1 December:
* The crew complements on Eurofleet flights varied to make them consistent with those currently operated at Gatwick
* The use of a single supervisor on all Eurofleet flights, either a CSD or a purser, balancing the work between these grades

Gatwick – effective from 1 December:
* One purser position replaced with a main crew member on 777 3-class aircraft at Gatwick, consistent with Heathrow.

There is a freeze on basic pay for all crew until March 2011.

There is no timetable announced for new fleet.

Also, has the new disruption agreement been imposed along with the 1 member off?
The following points will remain, or be incorporated into the Disruption Agreement:

• The definition of disruption remains unchanged.

• The double night will be removed for Worldwide diverted inbound services to anywhere in the UK and Europe, and a minimum of 15 hours off-duty will be achieved if the aircraft is unable to continue to its original destination.

• When disruption takes place the IFCE management team will advise Duty representatives and crew colleagues when and how the disruption agreement has been applied. A review will take place of any disruption at the next joint meeting.
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