PPRuNe Forums - View Single Post - British Airways vs. BASSA (Airline Staff Only)
Old 2nd Apr 2010, 19:11
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henkybaby
 
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I work as an HR consultant (also for airlines, albeit not BA) and would like to try and explain how these labor conflicts generally work.

First, there is the point of renumeration. To put it simply if

"you can easily switch employer and maintain or improve on your current remuneration including benefits"

than you are in a market where labor still dictates the working conditions. This is mostly in very knowledge intensive industries with scarce resources of an adequate level. You can expect generous renumeration and wages and benefits will not differ greatly amongst competitors. Industrial Action in these sectors is unheard of.

However, if you are in an industry where labor is easy to come by, easily trained and there is little competition for said labor amongst the employers, than you have little leverage. You can expect lower wages and fewer benefits.

A lot of companies that are in labor conflict about wages are formerly state owned monopolists who now face tough competition from companies established according to a different business model. That is - quite obviously - the case for BA. They need to bring their labor cost to the same level as the competition to survive. There is no alternative. These are also the sectors where IA is common, simply because the employees have no alternative. That is also why unions are necessary.

There is no simple resolution for these conflicts. Eventually BA will have to shift to a business model that is comparable to the new entries to the market like Virgin or the ME carriers. Maybe even like Easyjet and Ryanair for their short haul market. This will - like with all these companies - lead to vigorous labor conflict. Not surprisingly, since the workers are fighting for the preservation of what they had deemed irrevocable.

A lot of sectors who feel as safe as a BA CC felt 10 years ago will face the same problems in the future. Think of IT consultants for one. It is the ugly side of capitalism where we (the consumer) want everything cheap.

I pass no judgement here, just try to insert some perspective from the management point of view to help the discussion. If deemed unwanted, feel free to delete.

Last edited by henkybaby; 2nd Apr 2010 at 19:23.
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