Studi
The second thing I fail to understand is why BMI pilots current collective agreements become worthless due to transfership of ownership of BMI. Can you sell a company to a new owner without also transfering to the new owner the obligations towards the employees? Is this possible in the UK? Sounds weird to me, it's like inheriting money from someone who had huge depts and died, but without the depts.
In the UK there is 'TUPE' legislation (Transfer of Undertakings Protection of Employment). This guarantees the terms of employment are carried over from the previous employer so as not to disadvantage the employee upon transfer.
It has been said that this legislation will protect the bmi employees where it is triggered throughout this transfer. It is not concerned with future scenarios such as career progression, seniority, etc.
This is not the only problem with the bmi transfer.
Most people's (pilots included) aspirations concern 1) Salary 2) career progression.
Given that BA has just introduced its new 34 point scale and has indicated that the bmi workforce will join at the bottom, most, if not all the bmi pilots will see TUPE 'kicking in' to protect them.
A 5 year F/O would have to wait a further 6 years before he would see an increase in salary, a 5 year Capt.-12 years, a 10 year Capt.- 16 years, & a 15 year Capt.- 20 years. As far as I am aware, the legislation does not compel any further increases in salary until the 'catch up' is complete. So we have Captains with 15-20 years to go before retirement with about, er.. 15-20 years before they can expect a salary increase. Nice, eh? Oh, and I don't think that the law compels the employer to match our (pathetic) subsistence allowance with the pilots of the new parent company.
As far as I am aware the present state of affairs regarding seniority are that we will be added to the bottom. There have been (and still are) 'discussions' going on on other forums about that; The BA pilots' argument is that they have been assured that no-one will be disadvantaged, so I can understand their concerns about integration.
The most common theme from our side is the BMED integration 3 years ago where Date Of Joining was used across both workforces, under advice from BALPA, the same union representing both sets of pilots here. There will have to be robust negotiations over all of these items.
The bmi pilots cite the fact that we are bringing a large number of slots (more than a fifth) of the size of the BA portfolio across; unlike previous mergers into BA, along with aircraft & qualified Crews; unlike previous mergers into BA.
The BA pilots state (quite correctly) that in its present form bmi would not be around in a year's time & therefore we should be glad of anything that's offered. Well, in order to get the books signed off in the latter part of 2010, WPS (our CEO) had to have a plan B if any sale did not follow through. It involved cutting it loose from the hub style of operation of the past, it would involve more LH & MH flying & would be a 'blank sheet of paper' approach. This, and a possible offer from Virgin or the Middle East were options.
Bmi has posted significant losses over the last few years. We have been run to lose money since the tie-up with DLH & SAS back in 1999, where losses would be covered in part by DLH & SAS. Anything of value was stripped systematically from under the noses of DLH, our main
external shareholder. I am led to believe that our Cargo company was owned separately by our Main Shareholder who benefitted hugely. Aircraft were leased & sub leased through a company owned by our Main Shareholder at extortionate rates. We are still paying for leases on buildings that have remained unoccupied for years, some in countries we no longer fly to. When BMED was integrated, there was supposed to be a sum set aside for re-liverying their aircraft; this was not carried out until last year after the Main Shareholder had forced the sale onto DLH. (paid for by the loss making airline)
The last 10 years saw advertising disasters, on-board product cock-ups of monumental proportions,etc.
DLH gave the impression of being serious about turning it around, but with no serious investment in aircraft that could use the slots, it was never going to work. following restructuring, and with several hundred job losses, bmi's admin. costs ballooned. That's right - they went UP! (could this be an efficient way of writing down tax just before the disposal?)
It was obvious that DLH had no intention of turning bmi around in the last couple of years; after acquiring the 20% of shares from SAS there was a clause whereby if they sold bmi before Sept 2010,SAS would get a cut. Guess what? within days of that expiring, we were put up for sale.
The staff have all made sacrifices to try to keep the old ship that was bmi afloat, while its owners had started to cut that ship up for scrap while it was still at sea.
Those that transfer to BA will, at least have a job; but there is a feeling of unease out there that we're in for more of the same.
There you go Studi, I bet you wish you had never asked!!!!!
