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British Airways Dispute

In: Business and Management

Submitted By aaronsutiono
Words 336
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In this appendix i will be writing about the changes of the British Airways management process that occur in 2009-2011
In the 2009 British Airways facing a major financial problems, the British Airways has lost £466.9m in July 2009. factors that cause this financial problems are:
- Significant increase in fuel price
- British Airways staff salary is above the industry average
- Sharp fall in the frequency of business class and first class passengers
So in order to overcome the problems British Airways management come out with a few methods. As stated above. The BA staff salary are above the average. By doing that BA losing about £1.6m a day. So the management decide that average pay would be brought in line with staff at Virgin Atlantic, who are paid half as much as their BA counterparts. And hope it will cut down £140m a year off cabin crew costs and also reductions in its 40,000-strong workforce, in addition to the 2,500 recent job losses at the company.
But it didn’t went well. In December 2009, a strike ballot was held by Unite the Union among its British Airways members concerned about job losses, a pay freeze and changes to the work practices of cabin crew. The proposed strikes were supported by Unite members. The second ballot was held in February 2010, and a series of industrial actions by Unite against BA followed in March 2010.

After a long dispute between British Airways and the union finally in the April-May 2011 the Airways and the Union came to an agreement, and agree to end the dispute. The union said BA had agreed to restore travel concessions to staff who went on strike and award a two-year pay deal worth up to 7.5%. Under the pay deal, staff will get up to a 4% rise this year and 3.5% next year. The awards are linked to proposed productivity changes, but the exact details are not known at this stage

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