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BA workers protest at key meeting BA workers protest at key meeting
(about 4 hours later)
Dozens of union representatives for British Airways have been protesting outside the airline's AGM against its cost-cutting plans.Dozens of union representatives for British Airways have been protesting outside the airline's AGM against its cost-cutting plans.
The GMB union held two cages with lemmings outside the meeting.
Steve Turner of union Unite said the message for shareholders was serious, and sought "a sensible way forward".Steve Turner of union Unite said the message for shareholders was serious, and sought "a sensible way forward".
BA boss Willie Walsh told shareholders job cuts were vital to its survival. BA aims to cut 1,000 administrative staff and 2,000 cabin crew.BA boss Willie Walsh told shareholders job cuts were vital to its survival. BA aims to cut 1,000 administrative staff and 2,000 cabin crew.
The airline also said it might issue bonds to boost cash reserves.
Talks with unions, which have reached deadlock, are set to resume on Thursday, said Mr Turner.Talks with unions, which have reached deadlock, are set to resume on Thursday, said Mr Turner.
BA shares were unaffected by the protests, closing up 1.5p at 128.1p.
'Current storm''Current storm'
The carrier, which has been hit by the downturn, said it was considering ways to raise funds, as it faces pressures to cut costs.The carrier, which has been hit by the downturn, said it was considering ways to raise funds, as it faces pressures to cut costs.
BA chairman Martin Broughton told shareholders the airline was considering issuing bonds to boost its cash reserves but that it would be the wrong time for a share issue.BA chairman Martin Broughton told shareholders the airline was considering issuing bonds to boost its cash reserves but that it would be the wrong time for a share issue.
"We are in discussions with our institutional investors, exploring opportunities... which we believe is the best way of increasing our cash reserves," he said."We are in discussions with our institutional investors, exploring opportunities... which we believe is the best way of increasing our cash reserves," he said.
"The world's major airlines are now facing up to the need to add more liquidity to their balance sheets to give them sufficient lift to weather the current storm," Broughton told shareholders."The world's major airlines are now facing up to the need to add more liquidity to their balance sheets to give them sufficient lift to weather the current storm," Broughton told shareholders.
He also warned that the group's pension scheme deficit would be more than the £1.74bn predicted last September.He also warned that the group's pension scheme deficit would be more than the £1.74bn predicted last September.
'Misguided''Misguided'
Before the AGM, the Unite union called on shareholders to encourage the airline to "step back from confronting its workforce and to instead find a sensible way forward through what we recognise are difficult times".Before the AGM, the Unite union called on shareholders to encourage the airline to "step back from confronting its workforce and to instead find a sensible way forward through what we recognise are difficult times".
THE VIEW FROM BA'S AGM Tom Symonds, BBC transport correspondent The two lemmings in cages, we were told, signify British Airways shareholders "following the company over the cliff".THE VIEW FROM BA'S AGM Tom Symonds, BBC transport correspondent The two lemmings in cages, we were told, signify British Airways shareholders "following the company over the cliff".
Of course as protest animals go, the lemming is not a great choice. About three inches long, furry, and in union captivity, they are not able to follow anyone anywhere.Of course as protest animals go, the lemming is not a great choice. About three inches long, furry, and in union captivity, they are not able to follow anyone anywhere.
But the shareholders are here in some numbers and if they weren't fully appraised of BA's plight, they will have been in the speeches of the chairman Martin Broughton and chief executive Willie Walsh.But the shareholders are here in some numbers and if they weren't fully appraised of BA's plight, they will have been in the speeches of the chairman Martin Broughton and chief executive Willie Walsh.
The airline industry was going through an "annus horribilis", the "biggest crisis" it had ever known, they said. In this "perilous state" British Airways was "at the eye of the storm".The airline industry was going through an "annus horribilis", the "biggest crisis" it had ever known, they said. In this "perilous state" British Airways was "at the eye of the storm".
The unions were here because of the deadlock between cabin crews and the management.The unions were here because of the deadlock between cabin crews and the management.
The stewards and stewardesses will take the pay cut - it's the conditions they're worried about.The stewards and stewardesses will take the pay cut - it's the conditions they're worried about.
BA plans to cut a total 3,700 posts by March 2010 in addition to the 2,500 positions that have already been eliminated since last summer.BA plans to cut a total 3,700 posts by March 2010 in addition to the 2,500 positions that have already been eliminated since last summer.
The carrier, hard hit by the downturn, is seeking to save money after posting a record £401m annual loss in May.The carrier, hard hit by the downturn, is seeking to save money after posting a record £401m annual loss in May.
A Unite union letter to shareholders says the planned changes are "misguided", saying BA does not offer "cheap labour on short-term contracts".A Unite union letter to shareholders says the planned changes are "misguided", saying BA does not offer "cheap labour on short-term contracts".
On Monday pilots voted overwhelmingly to accept a 2.6% pay cut, said the British Airline Pilots' Association. The pilots will receive BA shares in exchange for the cuts.On Monday pilots voted overwhelmingly to accept a 2.6% pay cut, said the British Airline Pilots' Association. The pilots will receive BA shares in exchange for the cuts.
'Survival''Survival'
Last week, BA cabin crew represented by the Unite union offered to take a 2.6% pay cut and have no salary rise until February 2011.Last week, BA cabin crew represented by the Unite union offered to take a 2.6% pay cut and have no salary rise until February 2011.
"The unions are prepared to make some cuts, but not prepared to surrender the rights they have had for decades," Simon Calder, travel editor of the Independent, told the BBC."The unions are prepared to make some cuts, but not prepared to surrender the rights they have had for decades," Simon Calder, travel editor of the Independent, told the BBC.
He added that competition among airlines had made it difficult for BA.He added that competition among airlines had made it difficult for BA.
"The big problem for BA is the cost of crewing. A transatlantic BA flight costs twice as much as Virgin Atlantic and lots more than Asian carriers," he said."The big problem for BA is the cost of crewing. A transatlantic BA flight costs twice as much as Virgin Atlantic and lots more than Asian carriers," he said.
At the centre of a dispute at the airline is the union fear that BA wants to tear up the contracts of cabin crew by slashing status and pay, and bring in new recruits on rock-bottom salaries Martin Shankleman, BBC employment correspondent Cabin crew row key to BA's futureAt the centre of a dispute at the airline is the union fear that BA wants to tear up the contracts of cabin crew by slashing status and pay, and bring in new recruits on rock-bottom salaries Martin Shankleman, BBC employment correspondent Cabin crew row key to BA's future
The total cuts are destined to save the airline up to £26m a year in running costs.The total cuts are destined to save the airline up to £26m a year in running costs.
Unite said presenting the cuts as BA's "fight for survival" was misguided, adding that BA was "destabilising the business and putting into jeopardy the future of 40,000 employees".Unite said presenting the cuts as BA's "fight for survival" was misguided, adding that BA was "destabilising the business and putting into jeopardy the future of 40,000 employees".
"We are not a low-cost airline and cannot compete in this market. We do not employ cheap labour on short-term contracts with little future within the company.""We are not a low-cost airline and cannot compete in this market. We do not employ cheap labour on short-term contracts with little future within the company."