6th July 2009

BA Staff agree pay cuts.

The Credit Crunch continues to hurt the travel industry as BA staff agree to pay cuts.

Nearly 7,000 British Airways staff have agreed to take pay cuts to help the airline through a financial crisis. Of the 40,000-strong workforce, 6,940 employees have volunteered for unpaid leave, part-time working or unpaid work by June 24.
BA said their actions will save the company up to £10 million.
Some 800 workers have agreed to work for up to a month for free, while another 4,000 are taking unpaid leave. The rest have volunteered to work part time.
BA chief executive Willie Walsh said: “This is a fantastic first response. I want to thank everyone who has volunteered to help us pull through this difficult period. “This response clearly shows the significant difference individuals can make.” Walsh has already agreed to work unpaid in July, forgoing his month's salary of £61,000.
But unions said asking staff to work for free was “unrealistic".
"The fact that less than two percent of BA's workforce chose to take up this option demonstrates that there is no real support for this,” the union added.
Meanwhile, Air India has allowed its employees to go on leave without pay for two to five years.
It will allow employees who opt for this scheme to work for rival airlines or associated businesses with management’s permission.
This voluntary scheme is applicable to all employees, except aircraft engineers and pilots.