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-   -   IAG: BA restructuring may cost 12,000 jobs (https://www.pprune.org/rumours-news/631988-iag-ba-restructuring-may-cost-12-000-jobs.html)

Just a spotter 28th Apr 2020 16:38

IAG: BA restructuring may cost 12,000 jobs
 
Reuters (28th April 2020) is reporting that IAG is in talks with BA unions about widespread redundancies.

* RECOVERY TO LEVEL OF PASSENGER DEMAND IN 2019 IS EXPECTED TO TAKE SEVERAL YEARS, NECESSITATING GROUP-WIDE RESTRUCTURING MEASURES

* IAG IS NOT CURRENTLY PROVIDING PROFIT GUIDANCE FOR 2020

* GROUP EXPECTS ITS OPERATING LOSS IN Q2 TO BE SIGNIFICANTLY WORSE THAN IN Q1

* LIKELY THAT RESTRUCTURING AND REDUNDANCY PROGRAMME WILL AFFECT MOST OF BRITISH AIRWAYS’ EMPLOYEES AND MAY RESULT IN REDUNDANCY OF UP TO 12,000
https://www.reuters.com/article/brie...-idUSFWN2CG13O

Best of luck to all.

TURIN 28th Apr 2020 16:56

Not entirely unexpected. We shall see what sort of (if any) kind of package is offered.
Good luck everyone.

whatdoesthisbuttondo 28th Apr 2020 17:11

From the pilots point of view, it’s pretty expensive to make pilots redundant, BA has what 45,000 employees?

Auxtank 28th Apr 2020 17:20

...and 4,500 of those are pilots.

https://mediacentre.britishairways.c...actsheets-3/33

Good Luck to all those affected by this.

peacheyglobes 28th Apr 2020 17:25


Originally Posted by whatdoesthisbuttondo (Post 10766233)
From the pilots point of view, it’s pretty expensive to make pilots redundant, BA has what 45,000 employees?

It could be, although if BA paid the statutory minimum redundancy pay (and I accept that is a big 'IF') then it would actually be quite inexpensive compared to pilot's salary. From gov.uk website:

"Employees get:

1.5 weeks’ pay for each full year of employment after their 41st birthday
a week’s pay for each full year of employment after their 22nd birthday
half a week’s pay for each full year of employment up to their 22nd birthday
Length of service is capped at 20 years and weekly pay is capped at £538. The maximum amount of statutory redundancy pay is £16,140."

Good Business Sense 28th Apr 2020 17:39


Originally Posted by Panel3 (Post 10766256)
There's just over 4500 of us. Possibly 800 redundancies indicated earlier. If the financial crisis is anything to go by VR will be offered first. In the 2008 case we had more volunteering than needed. After that, this time, who knows.

Of course, the BA guys and girls joining those from Flybe and Thomas Cook ..... unprecedented

Ron Swanson 28th Apr 2020 17:48


Originally Posted by whatdoesthisbuttondo (Post 10766233)
From the pilots point of view, it’s pretty expensive to make pilots redundant, BA has what 45,000 employees?

statutory redundancy pay is now capped at £16,140

https://www.gov.uk/redundancy-your-r...redundancy-pay

cashash 28th Apr 2020 17:50

Bad news but not unexpected.

I do fear that many of my friends around the globe are going to end up unemployed by the end of this year.

Auxtank 28th Apr 2020 17:50


Originally Posted by Panel3 (Post 10766256)
There's just over 4500 of us. Possibly 800 redundancies indicated earlier. If the financial crisis is anything to go by VR will be offered first. In the 2008 case we had more volunteering than needed. After that, this time, who knows.

Panel3 - Sorry I got my numbers wrong - I was basing it on BA Factsheet - so they appear to not know either - or just don't bother updating info very often. Have edited my post. Yes, very different circumstances to the banking crisis in which we find ourselves. Best wishes to you and all. What a bugger this all is.

stormin norman 28th Apr 2020 18:01

'Restructuring' means contracts and Ts and Cs out of the window, as well as Redundencies/Severance.

My thoughts are with all affected.

C195 28th Apr 2020 18:02


Originally Posted by Good Business Sense (Post 10766263)
Of course, the BA guys and girls joining those from Flybe and Thomas Cook ..... unprecedented

How many (approximately) pilots did Flybe and Thomas Cook employ?

helicrazi 28th Apr 2020 18:05


Originally Posted by peacheyglobes (Post 10766247)
It could be, although if BA paid the statutory minimum redundancy pay (and I accept that is a big 'IF') then it would actually be quite inexpensive compared to pilot's salary. From gov.uk website:

"Employees get:

1.5 weeks’ pay for each full year of employment after their 41st birthday
a week’s pay for each full year of employment after their 22nd birthday
half a week’s pay for each full year of employment up to their 22nd birthday
Length of service is capped at 20 years and weekly pay is capped at £538. The maximum amount of statutory redundancy pay is £16,140."

Statutory yes, but they can offer any package they want...

My company offered it with an uncapped weekly pay for instance. Unions will negotiate .

macdo 28th Apr 2020 18:09


Originally Posted by C195 (Post 10766294)
How many (approximately) pilots did Flybe and Thomas Cook employ?

tcx uk had about 630. About half those had new positions by January. Disregarding furlough, quite a few have been let go again.
my sympathy and empathy to all BA staff.

Meester proach 28th Apr 2020 18:11

So the nightmare rolls on.

Good luck to the Nigels and Nigellas

peacheyglobes 28th Apr 2020 18:24


Originally Posted by helicrazi (Post 10766299)
Statutory yes, but they can offer any package they want...

My company offered it with an uncapped weekly pay for instance. Unions will negotiate .

Yes as I said in my post it is unlikely BA would pay the statutory minimum. As for the unions negotiating I can't see how they will have much power now.

GKOC41 28th Apr 2020 18:39

What about Lingus and Iberia.
And the Italian Government bails out Alitalia and Air France get a big wad of Government cash.
Just goes to show where employee's are on BA's ladder.

Waterworld 28th Apr 2020 18:54


Originally Posted by GKOC41 (Post 10766333)
What about Lingus and Iberia.
And the Italian Government bails out Alitalia and Air France get a big wad of Government cash.
Just goes to show where employee's are on BA's ladder.

You mean the Goverments ladder?

Interested.Spectator 28th Apr 2020 19:01


Originally Posted by GKOC41 (Post 10766333)
What about Lingus and Iberia.
And the Italian Government bails out Alitalia and Air France get a big wad of Government cash.
Just goes to show where employee's are on BA's ladder.

BA ain't the government, which is kind of the point I think ?

hunterboy 28th Apr 2020 19:07

Who would have thought a company making 2 billion profit would turn around and axe 1/4 of its workforce when the going gets rough? Apart from the staff working for BA, of course, who know what a ruthless, heartless bunch they are.

helicrazi 28th Apr 2020 19:08

Surely it doesn't matter how much cash is pumped in, demand for travel will be alot less so a reduction in work force is inevitable in any company. Cash just keeps the lights on for longer at the moment.


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