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British Airways staff ‘face up to £30,000 pay cut as airline forces 14,000 cabin crew to sign new contracts’
British Airways says its planning to move 14,300 cabin crew onto new contracts requiring them to work on both short haul and long haul flights.
The airline also warned that staff who don’t sign up to them will be dismissed or made redundant, and that the new contracts will include a clause to temporarily layoff workers.
The airline is introducing new contracts across its 42,000 strong workforce.
It comes as the airline only recently revealed it may have to axe 12,000 jobs across its workforce as the travel industry takes a battering from coronavirus lockdowns and travel bans.
Job cuts have also been announced at Ryanair and Virgin Atlantic and Virgin Holidays.
But one British Airways cabin crew member who is currently on furlough told The Sun that shaking-up contracts in this way will penalise loyal workers.
The letter seen by The Sun reveals that around 8,300 cabin crew either work on short haul European flights or long haul worldwide flights, while the rest do a mix.
But it goes on to say that British Airways wants to combine teams so that everyone works on both types of flight, and so that everyone moves to a “harmonised” pay structure.
Trade union Unite, which represents British Airways workers, told The Sun this could mean estimated reductions in pay of between £1,000 and £30,000 a year, although the average is believed to be much less than this.
It adds that all British Airways workers are affected - not just cabin crew.
The cabin crew member, who has been with British Airways for more than a decade, explained to The Sun that long haul workers fly less frequently, which means they often don’t need to live near British Airways’ hub in London Heathrow.
But they said having to fly more frequently could leave many forced between the choice of relocating nearer Heathrow but on less money, or being left with no choice but to resign.
“Lots of people would take unpaid leave or pay cuts for a year. We want the survival of the airline and a job to go back to,” they told The Sun.
“But British Airways has come at this with a view to ripping up our terms and conditions and making them so unfavourable that if you're not made redundant you don't want to sign up to them and then you have no job.
“It’s the ruthlessness of how it’s gone about it. Loyalty doesn’t count for anything.”
The cabin crew member told The Sun they’re now worried about the future with a family to provide for and a mortgage pay, and with little experience in roles outside of the travel industry.
British Airways says all planned contract changes are proposals at this stage, but wouldn’t comment further given discussions are ongoing.
The airline is currently locked in a 45-day consultation period with workers and unions who have labelled the proposals “smash and grab opportunism”.
Unite points out that British Airways owner, IAG, isn’t making similar cutbacks to its Iberia workforce in Spain.
UK redundancies are expected to be made between June 15, 2020 and December 31, 2020, the letter states.
IAG’s revenue fell by 13 per cent to 4.6billion euros in the first three months of this year compared to the same period last year when it made 5.3billion euros.
Alex Cruz chief executive of British Airways added: “The scale of this challenge requires substantial change so we are in a competitive and resilient position, not just to address the immediate Covid-19 pandemic, but also to withstand any longer-term reductions in customer demand, economic shocks or other events that could affect us.”
In the UK the government has warned against all but essential travel leading to millions of flights and holidays being cancelled, with many saying they're struggling to get refunds for these trips.
Globally, the International Air Transport Association (IATA) has warned the Covid-19 crisis will see airline passenger revenues drop by $314billion (£254million) in 2020, a 55 per cent decline compared to 2019.
It adds that "the industry’s outlook grows darker by the day.", and says recovery is more likely to take the form of a "U shape" as opposed to a "V shape".
Grounded flights force Tui to cut staff hours and wages
Tui,is cutting staff hours and wages, as it seeks UK government support in a bid to survive from going under of all travel in Europe as coronavirus spreads.
In a letter Tui sent to employees on Thursday, seen by the Financial Times, the company said that staff not required to work as flights had been grounded and travel bookings haltedwould receive 50 per cent of their pay and benefits. Those that were still working will have their pay cut by 30 per cent and seasonal cabin crew will not have their contracts renewed.
Tui UK’s overseas resort staff will be forced to relocate to a different country every two years or resign as the operator enforces a ‘mobility clause’.
In a letter seen by Travel Weekly, the operator said it would implement the clause, which is already in staff contracts, by this winter. It said it aimed to create a more “mobile and flexible” workforce and comply with social security requirements.
Staff fear the move could damage customer service as they are forced to move every two years. Some Tui staff have up to 20 years’ experience in one resort.
The policy applies to 1,600 staff who work in Tui resorts in summer and about 1,200 who work during the winter. A few top‑performing staff will be given the choice of being placed on a local contract on local wage scales and without the same benefits.
Staff who do not want to change resorts and do not meet the criteria to go on to a local contract have been told they must resign or face disciplinary action.
One overseas employee accused the company of using “underhand, intimidating tactics”. She and other staff are taking legal advice as they believe the company could be guilty of constructive dismissal.
She said: “It is very sad that Tui is treating long‑term loyal staff in this way and showing that they have no regard for customer service.
We hear so much about customer service in our industry but Tui is showing it isn’t really a priority.
A Tui spokesman said: “We require a flexible and mobile workforce to best service the changing needs of our customers.
“We appreciate that for some employees this will represent a significant change in their circumstances.
“We have therefore communicated this process as early as possible and employees are encouraged to talk to their line manager to discuss their situation.”
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Topic: TUI FLIGHT'S CANCELLED! (Read 7359 times)