Will the British Airways employment changes be replicated elsewhere?
News that a significant number of British Airways staff have agreed to work unpaid for up to a month, take unpaid leave or move to a part-time basis has been welcomed with open arms by Willie Walsh, the chief executive of British Airways. The move is set to save the company around £10 million a year and further efficiency savings can be expected in the short to medium term. But does this change the UK employment market?
One Interesting fact about the changes at British Airways is that rather than force a reduced hourly rate of pay on workers, the company has asked for specific help ever a specific period of time. The move has received a positive reaction from many working for the company and there is speculation we could see this particular a strategy replicated in other areas of the UK economy. Many of the large-scale companies such as British Airways have seen their efficiency reduced as the Internet continues to take hold and have been looking at ways to slash their cost basis.
Now that British Airways has "broken the back of the unions" it would appear that others could follow in the knowledge they have not been "first to market".
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