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BA boss says there is no need to fire and rehire staff | BA boss says there is no need to fire and rehire staff |
(1 day later) | |
There is no need for British Airways to lay off cabin crew and then rehire them on inferior terms, boss Alex Cruz has said. | There is no need for British Airways to lay off cabin crew and then rehire them on inferior terms, boss Alex Cruz has said. |
Unions and MPs had accused the airline of following a "fire and rehire" policy, which saw some employees facing pay cuts of up to 50%. | Unions and MPs had accused the airline of following a "fire and rehire" policy, which saw some employees facing pay cuts of up to 50%. |
But Mr Cruz told MPs "there will be no need to issue new contracts", subject to staff approval. | But Mr Cruz told MPs "there will be no need to issue new contracts", subject to staff approval. |
BA reached the outline of a jobs agreement with union Unite last week. | BA reached the outline of a jobs agreement with union Unite last week. |
The pair have been in a bitter dispute over BA's plans to shed up to 13,000 jobs and cut pay, amid a collapse in demand for air travel. | The pair have been in a bitter dispute over BA's plans to shed up to 13,000 jobs and cut pay, amid a collapse in demand for air travel. |
Speaking to the Transport Select Committee, Mr Cruz said it was a matter of "regret" that it took 73 days for BA's non-pilot unions to sit down and negotiate. | Speaking to the Transport Select Committee, Mr Cruz said it was a matter of "regret" that it took 73 days for BA's non-pilot unions to sit down and negotiate. |
But Labour MP Sam Tarry responded: "I would argue that if you hadn't put a metaphorical gun to their head then that might not have happened." | But Labour MP Sam Tarry responded: "I would argue that if you hadn't put a metaphorical gun to their head then that might not have happened." |
Mr Cruz said the airline would now follow the "standard methodology" of union agreements and make amendments to existing contracts. | |
Details are still being worked out and ballots of some staff are yet to be held. | Details are still being worked out and ballots of some staff are yet to be held. |
Long-serving cabin crew members face a 15% pay reduction, while hoping to retain many of the allowances which constitute a significant part of their overall pay. | Long-serving cabin crew members face a 15% pay reduction, while hoping to retain many of the allowances which constitute a significant part of their overall pay. |
"We have reached agreements in a majority of areas," Mr Cruz said. | "We have reached agreements in a majority of areas," Mr Cruz said. |
"We very much hope that the result of the ballots will be to accept those ballots." | "We very much hope that the result of the ballots will be to accept those ballots." |
'Devastated business' | 'Devastated business' |
In relation to whether or not BA will have to make 13,000 staff redundant, Mr Cruz said that the company didn't "need to get to that number". | In relation to whether or not BA will have to make 13,000 staff redundant, Mr Cruz said that the company didn't "need to get to that number". |
However, a large number of long-serving cabin crew have taken voluntary redundancy and many staff felt that the terms being offered at the time meant that was their only choice. | However, a large number of long-serving cabin crew have taken voluntary redundancy and many staff felt that the terms being offered at the time meant that was their only choice. |
Mr Cruz told MPs that the pandemic had "devastated our business... and we're still fighting for our own survival". | Mr Cruz told MPs that the pandemic had "devastated our business... and we're still fighting for our own survival". |
Last week the airline flew about 187,000 passengers - about 25%-30% of its normal flight schedule. | Last week the airline flew about 187,000 passengers - about 25%-30% of its normal flight schedule. |
"Everyone is facing decisions we never wanted to face," Mr Cruz said. | "Everyone is facing decisions we never wanted to face," Mr Cruz said. |
He said he had taken a 33% pay cut during the pandemic, reducing his salary from the £805,000 he earned in 2019. | He said he had taken a 33% pay cut during the pandemic, reducing his salary from the £805,000 he earned in 2019. |
But he refused to comment on an £833,000 bonus paid to the outgoing boss of BA's parent company, Willie Walsh. | But he refused to comment on an £833,000 bonus paid to the outgoing boss of BA's parent company, Willie Walsh. |
IAG faced a backlash from shareholders over that payment to Mr Walsh who left the company last week. | IAG faced a backlash from shareholders over that payment to Mr Walsh who left the company last week. |