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Union loses legal battle with BA | Union loses legal battle with BA |
(9 minutes later) | |
The union Unite has failed in a High Court action against British Airways to try to overturn changes brought in by the airline last year. | The union Unite has failed in a High Court action against British Airways to try to overturn changes brought in by the airline last year. |
It claimed it was not consulted properly, and said the changes including freezing pay and cutting crew on long-haul flights, were imposed. | It claimed it was not consulted properly, and said the changes including freezing pay and cutting crew on long-haul flights, were imposed. |
The union had been set to strike over the issues over Christmas, but a separate High Court action stopped it. | The union had been set to strike over the issues over Christmas, but a separate High Court action stopped it. |
A new strike ballot is ongoing, and will close on 22 February. | A new strike ballot is ongoing, and will close on 22 February. |
'Unnecessary' | |
BA, which has already threatened to take away generous travel perks for workers who do strike, said it was "extremely pleased" with the ruling. | BA, which has already threatened to take away generous travel perks for workers who do strike, said it was "extremely pleased" with the ruling. |
"Unite's central demand over the last three months has been that we reverse these changes, despite the severe financial impact this would have on the company at a time when we are facing a second year of record annual losses," the company said. | "Unite's central demand over the last three months has been that we reverse these changes, despite the severe financial impact this would have on the company at a time when we are facing a second year of record annual losses," the company said. |
"Unite brought this case to court. We believe it should reflect on the court's decision rather than impose an unnecessary strike on the travelling public." | "Unite brought this case to court. We believe it should reflect on the court's decision rather than impose an unnecessary strike on the travelling public." |
Unite assistant general secretary Len McCluskey said that industrial action remained a "possibility". | |
"This regrettable judgment makes absolutely no difference to the substance of our dispute with BA," he said. | |
Service impact? | Service impact? |
The plans for the changes were first presented to BA staff - and unanimously rejected - at a mass meeting in July. | The plans for the changes were first presented to BA staff - and unanimously rejected - at a mass meeting in July. |
ANALYSIS By Richard Scott, BBC transport correspondent | ANALYSIS By Richard Scott, BBC transport correspondent |
The ruling from the high court is a big blow to the union, Unite. | The ruling from the high court is a big blow to the union, Unite. |
It's the second court case it has lost to BA in two months, after the High Court ruled its Christmas strike was illegal. Now it is waiting for the result of a new strike ballot which we'll get on Monday. | It's the second court case it has lost to BA in two months, after the High Court ruled its Christmas strike was illegal. Now it is waiting for the result of a new strike ballot which we'll get on Monday. |
It'll be interesting to see whether negative media coverage, criticism from the public and the threat from BA of the removal of generous staff travel perks for strikers will make a difference to the result. | It'll be interesting to see whether negative media coverage, criticism from the public and the threat from BA of the removal of generous staff travel perks for strikers will make a difference to the result. |
They were then introduced in November - when BA reduced the number of cabin crew on long haul flights from 15 to 14 and brought in a two-year pay freeze from 2010. | They were then introduced in November - when BA reduced the number of cabin crew on long haul flights from 15 to 14 and brought in a two-year pay freeze from 2010. |
The union said this would hit passenger services, as well as the earnings and career prospects of cabin crew. | The union said this would hit passenger services, as well as the earnings and career prospects of cabin crew. |
The airline has also proposed new contracts for fresh recruits and newly-promoted staff. These include a single on-board management grade, no seniority, promotion on merit, and pay set at the market rate plus 10%. | The airline has also proposed new contracts for fresh recruits and newly-promoted staff. These include a single on-board management grade, no seniority, promotion on merit, and pay set at the market rate plus 10%. |
This would still see new recruits paid significantly less than current staff, however. | This would still see new recruits paid significantly less than current staff, however. |
The union argues it should have been consulted, because the changes are contractual. | The union argues it should have been consulted, because the changes are contractual. |
But BA disputed this, saying it was not obliged to consult as "the changes do not alter contractual terms and conditions for individual crew members". | But BA disputed this, saying it was not obliged to consult as "the changes do not alter contractual terms and conditions for individual crew members". |
The changes are all part of cost-cutting measures at the loss-making airline. | The changes are all part of cost-cutting measures at the loss-making airline. |
Earlier this month, British Airways announced it made a pre-tax loss of £50m ($79m) in the three months to December 2009. | Earlier this month, British Airways announced it made a pre-tax loss of £50m ($79m) in the three months to December 2009. |
This was down from the £122m it lost in the same period in 2008 and smaller than many analysts had expected. | This was down from the £122m it lost in the same period in 2008 and smaller than many analysts had expected. |
However, BA's pre-tax loss in the nine months to December rose to £342m from £70m in the same period in 2008. | However, BA's pre-tax loss in the nine months to December rose to £342m from £70m in the same period in 2008. |