BBC News Online: Business

British Airways to cut workers' pay

The airline is proposing to withdraw the annual extra one week's holiday pay, due to be paid next month, and to stop the annual increment next year.

Unions say they will oppose the cuts, when they meet management for talks later this week. BA says the proposals would save £37m.

The proposed pay cuts would affect 36,000 non-management staff based in the UK, including flight crew, cabin crew, engineers, administrative and ground staff.

Six hundred senior managers were told they faced a 10% pay cut last week.

The company's directors have agreed to reduce their own pay by 15%.

Thousands of middle managers have been warned their pay is also being reviewed.

One union official said the plans would be opposed.

"Senior managers can afford to take a pay cut when they are earning hundreds of thousands of pounds a year," said Ed Blissett, an official of the GMB Union.

"It is a different story for our members, some of whom earn as little as £8,000. They cannot afford to reduce their pay."

Industry crisis

The reluctance of people to travel by air after last month's terrorist attacks has plunged the airline industry into crisis.

More than 100,000 jobs have been shed by airlines around the world as they attempt to cut back costs.

Since the attacks, BA has said it plans to cut 7,000 jobs and it has withdrawn and suspended a number of its regular services.

Last week the company said it had seen a 22% fall in total passenger traffic during September month, and that it expected further falls.

On Wednesday, the European Commission is expected to announce that it will allow some state aid for airlines struggling in current conditions.