British Airways asks employees to work without pay

[zeqa 1]

LONDON (AP) -- British Airways on Tuesday urged its staff to work for nothing in an effort to save the company money.

 

British Airways PLC is struggling to come up with ways to save cash after reporting its biggest full-year loss since the former national airline was privatized in 1987.

 

BA chief Willie Walsh has said he would not draw a salary for the month of July, and urged other employees to work for blocks of time without being paid.

 

"I am looking for every single part of the company to take part in some way in this cash-effective way of helping the company's survival plan. It really counts," Walsh said in a company publication.

 

BA said the option meant employees would effectively volunteer to take a cut in base pay, with the lost income spread out over several months. The company had said last month it would ask employees to consider working without pay.

 

The UNITE union, which represents thousands of BA ground and cabin crew, gave the proposal a chilly reception. The union said that while Walsh might be able to afford working a month for free, its members could not.

 

BA said last month that it had lost 375 million pounds ($595 million) in the year ending March 31, compared with a profit of 712 million pounds in the previous year. That is its worst result in more than two decades of business, the previous low point being a 200 million pounds loss in 2001-2002.

 

http://finance.yahoo.com/news/British-Airw...39391.html?.v=1

 

 

[Pieter C. 5]

Work for nothing without job-guarantee ?

[Ken M. 0]

I, along with many other Scots, won't be shedding any tears if London Airways go under.

 

Walsh has a cheek asking staff to work for nothing.

[Alif A. F. 0]

I'm afraid that decision might dampen the morale of BA employees and that will translate to eroding service quality onboard BA flights...

[Mohd Suhaimi Fariz 2]

If Willie Walsh is truly honest in cost cutting, he should have asked all the management to surrender their pay for a while, not the guys who are the backbone of the airline. I'm sure many of the management can afford to continue living their lives without pay, but for the little ppl, I doubt they can, as the union stated.

Edited June 18, 2009 by Mohd Suhaimi Fariz

[Alif A. F. 0]

Or channel some of the British MPs salaries into funding this airline for now...

[BC Tam 2]

This must be the first I ever hear of a trade union asking members to accept pay cuts AND longer work hours

from the BBC

Things must be really, really grim

[BC Tam 2]

Branson to ministers: Let BA go bust

 

LONDON, June 21 — Sir Richard Branson has rubbed salt in British Airways’ wounds by declaring BA practically worthless, and urging the government to resist any attempts to bail it out.

 

Branson’s comments will incense BA management, which this week will hold vital talks with cabin crew and ground staff over pay cuts, lay-offs and changes to working conditions aimed at saving £100 million (RM570 million) a year.

 

Willie Walsh, chief executive, who is trying to stem big losses and has warned that BA faces a “fight for survival”, wants a deal by June 30.

 

Branson, who founded Virgin Atlantic, BA’s biggest commercial rival, said ministers should not be tempted to step in. “It would not be in Britain’s interest,” he said.

 

“We and others are standing by ready to take on their routes and runway slots at Heathrow if they get into serious trouble. I thought the US government’s bail-out of the car companies was a bad idea and it’s the same for BA.”

 

Virgin had looked at a bid for BA, Branson said, but concluded that the company’s liabilities — in particular its pension deficit — were too great.

 

“It’s not worth much anymore because of the liabilities. We were thinking about if the shares went under 100p (they closed on Friday at 136½p), but it would be better to wait for its demise,” he said.

 

Yesterday a BA spokesman said: “This is fantasy. There are no talks with government, and there will be no talks. We have opposed state aid and our position has not changed.”

 

The fraught relationship between the airlines has worsened. Keith Williams, BA’s finance director, recently questioned Virgin’s claims of a profit, saying its figures went into “Virgin accounting territory”.

 

It emerged this weekend that Walsh has snubbed a request to give evidence to the House of Commons transport committee on July 1 — the day after the deadline for the union talks. MPs are preparing a report on the future of aviation.

 

“Given the extremely wide ranging nature of the subject of investigation — which goes far beyond BA — he has reluctantly declined,” an airline spokesman said. — The Sunday Times

 

Classic 'kick them while they're down' move

 

I wonder how long before we find same scenario played out in the local arena

[Rozhan 0]

I wonder how long before we find same scenario played out in the local arena

 

I'd love for it to happen

 

[KK Lee 5]

Classic 'kick them while they're down' move

 

I wonder how long before we find same scenario played out in the local arena

 

 

TF offered to turn around MH but was declined by the gomen

 

 

[BC Tam 2]

TF offered to turn around MH but was declined by the gomen

Not totally - was allowed to experiment with Sabah & Sarawak in form of FAX

Perhaps big picture was to come later ?

[S V Choong 4]

I'd love for it to happen

Not a bad idea, it all depends who has the strongest muscles within the politcal arena.

 

Until they sort themselves out and be settled with their interests, we are likely not to see that happening in the immediate future.