Unions warn BA over job cut plans

BA has suffered a fall in revenues and is braced for further losses

Unions representing British Airways cabin crew have urged the airline to abandon plans to cut 1,700 jobs and freeze pay.

Following an emergency meeting with the company, the Unite union called for BA to resume talks or "risk a serious, drawn-out confrontation".

BA said it had been discussing the changes with the union since June, and that they would "go ahead as planned".

BA says it must be more efficient to ensure its long-term survival.

The job cuts it plans would involve 1,000 cabin crew taking voluntary redundancy and a further 3,000 choosing to go part-time, and would take effect from the end of November.

'Disgraceful attempt'

But Unite accuses the company of unilaterally imposing cuts.

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"This imposition is completely unacceptable," said Steve Turner, Unite national officer for aviation.

"It is a disgraceful attempt to intimidate workers into accepting poorer contracts. This imposition must be withdrawn."

He also accused the airline of "categorically refusing" to talk about the plans to cut jobs and freeze pay at three days of talks at the conciliation service Acas last week.

BA responded by saying cabin crew leaving the company had volunteered to do so. It also said workers had been consulted over the plans.

BA has said that it plans to recruit new staff on different terms and conditions to current employees, but denied the union's claim that the changes would alter contractual terms and conditions for existing crew.

Unite has previously warned that a ballot over industrial action was possible.

'No evidence of recovery'

In the year to the end of March, BA made a loss of £401m - its biggest loss since it was privatised in 1987.

In an internal memo, BA chief executive Willie Walsh told staff that he saw "little or no evidence" of any economic recovery in the airline industry.

Analysts said it was crucial for chief executive Willie Walsh to be dealing with costs.

"He has got to stem the losses and the action has got to be seen by customers and particularly investors that he is doing something about the costs," said Derek Jewson, airline consultant and former BA executive.

Many airlines are trying to cut costs at the moment as the economic downturn hits passenger numbers.

Also on Wednesday, Irish airline Aer Lingus said it would cut almost 800 jobs in an attempt to save 97m euros ($143m; £90m) by 2011.

Fewer flights, new working methods and new IT systems will cut 676 jobs, in addition to 100 staff who have already been told their contracts will end.