Union loses fight to postpone British Airways cost-cutting programme
The Unite union has lost the latest in a number of long-running legal battles with British Airways and the company's attempt to reduce its cost base. The company has won the right to make changes to the number of cabin crew required on worldwide and European journeys, which will lead to large cost savings. The union had argued that various changes introduced by British Airways broke collective agreements which were incorporated in individual contracts of employment although this argument was rejected by the courts.
The ongoing battle between the British Airways management and the Unite union still continues on a number of different fronts although the majority of battles are based upon the company's ongoing cost-cutting programme. There could be no further difference in opinion between the two parties although it was hoped that they would at least try to find some middle ground to ensure the financial strength of British Airways is maintained and improved in the short to medium term. Whether or not British Airways is actually in danger of going out of business is open to debate but there is no doubt that further cost-cutting is on the cards.
The airline industry is only now starting to re-emerge from perhaps the most difficult decade in its history with British Airways losing significant income and profitability especially from its former premium rate transatlantic operation.
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