BA staff to work 'for free'
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Joined: Nov 2007
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From: Up't North
BA staff to work 'for free'
Originally Posted by The Times
British Airways has asked its 40,000 staff to work without pay for up to a month as the ailing airline seeks to cut costs.
The group, which made a record £401 million loss in 2008 amid surging fuel prices and a collapse in premium-fare passengers, is seeking to dramatically reduce costs and has already offered staff unpaid leave or a reduction in hours.
Willie Walsh, BA’s chief executive, has now gone a step further by asking staff to volunteer for between one and four weeks of unpaid week in what he says is a “fight for survival.”
Mr Walsh, who said last week he would work for free in July, has set a deadline of June 24 for employees to volunteer for unpaid work. He said that the salary deductions would be spread over three to six months wherever possible.
BA denied that those staff who volunteered for unpaid work would be given preference if the airline imposes a further round of redundancies.The airline is currently negotiating pay deals and job reductions with its ground handling staff, pilots and cabin crew, who have been told that the airline needs to settle discussions by the end of the month. In total, BA is thought to be seeking as many as 4,000 job cuts, including 2,000 voluntary redundancies among the 14,000 cabin crew.
The request for volunteers to work for free was made in the company’s BA news magazine. In an article titled Action Time, Mr Walsh wrote: “I am looking for every single part of the company to take part in some way. It really counts. We face a fight for survival. These are the toughest trading conditions we have ever seen and there simply are no green shoots.”
“Our survival depends on everyone contributing to changes that permanently remove costs from every part of the business,” he added.
The group, which made a record £401 million loss in 2008 amid surging fuel prices and a collapse in premium-fare passengers, is seeking to dramatically reduce costs and has already offered staff unpaid leave or a reduction in hours.
Willie Walsh, BA’s chief executive, has now gone a step further by asking staff to volunteer for between one and four weeks of unpaid week in what he says is a “fight for survival.”
Mr Walsh, who said last week he would work for free in July, has set a deadline of June 24 for employees to volunteer for unpaid work. He said that the salary deductions would be spread over three to six months wherever possible.
BA denied that those staff who volunteered for unpaid work would be given preference if the airline imposes a further round of redundancies.The airline is currently negotiating pay deals and job reductions with its ground handling staff, pilots and cabin crew, who have been told that the airline needs to settle discussions by the end of the month. In total, BA is thought to be seeking as many as 4,000 job cuts, including 2,000 voluntary redundancies among the 14,000 cabin crew.
The request for volunteers to work for free was made in the company’s BA news magazine. In an article titled Action Time, Mr Walsh wrote: “I am looking for every single part of the company to take part in some way. It really counts. We face a fight for survival. These are the toughest trading conditions we have ever seen and there simply are no green shoots.”
“Our survival depends on everyone contributing to changes that permanently remove costs from every part of the business,” he added.
Joined: May 2002
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From: LGW - Hub of the Universe!
I am shocked that "The Times" has exaggerated the facts!
British Airways has asked for volunteers who might be prepared to work for a week without pay. (A volunteer, you may remember, is worth ten pressed men!)
Now, before you ridicule the idea, someone like me, a Customer Services guy bumping along the bottom of God's Pay SCale, couldn't afford to give up even an hour's pay! However, if a carrot was offered during the busy summer months, I might be prepared to work 37 hours without pay if some little benefit in kind was offered.
Now, as far as BA management are concerned, they are wanting to gauge how much interest there would be if some sort of "subject to space available" staff travel benefit was offered as a payment in kind. If I could take Mrs Bealine away for an extra break in the dreary winter months, I would willingly volunteer!
..............so, you see, things aren't exactly what they seem!
I must say, from an employee's point of view, British Airways - the company - has always treated me very fairly, and I see no reason why they wouldn't treat me fairly in the future. There are one or two rogue managers there for sure, but the company means well and is still one of the best UK employers - and I still derive a good deal of job satisfaction!
British Airways has asked for volunteers who might be prepared to work for a week without pay. (A volunteer, you may remember, is worth ten pressed men!)
Now, before you ridicule the idea, someone like me, a Customer Services guy bumping along the bottom of God's Pay SCale, couldn't afford to give up even an hour's pay! However, if a carrot was offered during the busy summer months, I might be prepared to work 37 hours without pay if some little benefit in kind was offered.
Now, as far as BA management are concerned, they are wanting to gauge how much interest there would be if some sort of "subject to space available" staff travel benefit was offered as a payment in kind. If I could take Mrs Bealine away for an extra break in the dreary winter months, I would willingly volunteer!
..............so, you see, things aren't exactly what they seem!
I must say, from an employee's point of view, British Airways - the company - has always treated me very fairly, and I see no reason why they wouldn't treat me fairly in the future. There are one or two rogue managers there for sure, but the company means well and is still one of the best UK employers - and I still derive a good deal of job satisfaction!
Joined: May 2009
Posts: 21
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From: EU
seems to be more than 1 week
British Airways is asking thousands of staff to work for nothing, for up to one month, to help the airline survive
BBC NEWS | Business | BA asks staff to work for nothing
British Airways is asking thousands of staff to work for nothing, for up to one month, to help the airline survive
BBC NEWS | Business | BA asks staff to work for nothing
Joined: Feb 2007
Posts: 76
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From: Netherlands
If the company I work for would come up with this idea I would certainly look into it. One entire month without pay is a little extreme (still got bills to pay) but working for free for one week spread out over the course of 4 months would be viable. As for working I'd much rather actually do something than sit on the couch for a week and beats losing your job all together, especially in these times.
- I'm sure he'll find it a struggle to get by on the remaining £650k, oh no wait he won't will he - silly me. . . 
Joined: Jun 2009
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From: Dublin
Firestorm #6 - Dividends
Firestorm,
BA isn't paying a dividend this year, so your suggestion has already been taken. You may also be interested to know that BA's share price "high" is 578p, reached in early-2007. The closing price yesterday was 137p, about 75% below the high. So it's fair to say that long-term shareholders have taken a pretty big hit. Incidentally, BA has underperformed the market generally by almost 25%. In other words, in a generally falling market, BA has nose-dived.
I think the point that BA staff should be raising in discussions with BA is just what impact this poor financial performance is going to have on senior staff (ie Director level) bonuses. It seems clear to me that WW & Co must have failed to meet most, if not all, of their performance targets recently. As a result it's hard to see why they should receive short-term cash bonuses. It would be particularly hard for Unions to sell remuneration and job cuts to their members if WW & Co still get cash bonuses related to y/e 3/09 or probably y/e 3/10 as well. I'd also be seeking assurances that the long term incentive plans are not adjusted to make it easier for WW & Co to claw back the losses they will undoubtedly be suffering on share awards made in past years. However, rewarding them with additional share incentives in line with current scheme rules makes sense. It makes even more sense to offer similar incentives to everyone else at BA if there is internal consensus that BA can, indeed, make a robust recovery if the current requested wage/job cuts are implemented now.
As well as seeking the above assurances from BA itself, the Unions may find it worthwhile to approach major shareholders directly or indirectly to seek their views on BA's senior remuneration policies. Lobbying corporate governance groups (ie the people who recommend how shareholders vote on AGM resolutions) gives good coverage for little effort. Rather than being "the enemy", shareholders' views may well be quite closely aligned with staff on this one.
Despite the above, there is still a need to take significant cost out of BA. There are posts elsewhere about how expensive BA's tickets are. Its key customers/routes are the ones worst hit by the current economic downturn. It is inefficient relative to existing operators, and at more risk than others of new low cost/high efficiency entrants to the long haul market.
BA isn't paying a dividend this year, so your suggestion has already been taken. You may also be interested to know that BA's share price "high" is 578p, reached in early-2007. The closing price yesterday was 137p, about 75% below the high. So it's fair to say that long-term shareholders have taken a pretty big hit. Incidentally, BA has underperformed the market generally by almost 25%. In other words, in a generally falling market, BA has nose-dived.
I think the point that BA staff should be raising in discussions with BA is just what impact this poor financial performance is going to have on senior staff (ie Director level) bonuses. It seems clear to me that WW & Co must have failed to meet most, if not all, of their performance targets recently. As a result it's hard to see why they should receive short-term cash bonuses. It would be particularly hard for Unions to sell remuneration and job cuts to their members if WW & Co still get cash bonuses related to y/e 3/09 or probably y/e 3/10 as well. I'd also be seeking assurances that the long term incentive plans are not adjusted to make it easier for WW & Co to claw back the losses they will undoubtedly be suffering on share awards made in past years. However, rewarding them with additional share incentives in line with current scheme rules makes sense. It makes even more sense to offer similar incentives to everyone else at BA if there is internal consensus that BA can, indeed, make a robust recovery if the current requested wage/job cuts are implemented now.
As well as seeking the above assurances from BA itself, the Unions may find it worthwhile to approach major shareholders directly or indirectly to seek their views on BA's senior remuneration policies. Lobbying corporate governance groups (ie the people who recommend how shareholders vote on AGM resolutions) gives good coverage for little effort. Rather than being "the enemy", shareholders' views may well be quite closely aligned with staff on this one.
Despite the above, there is still a need to take significant cost out of BA. There are posts elsewhere about how expensive BA's tickets are. Its key customers/routes are the ones worst hit by the current economic downturn. It is inefficient relative to existing operators, and at more risk than others of new low cost/high efficiency entrants to the long haul market.
