BAA caves in to union demands
BAA has been forced to double its original offer to avert strike action across six UK airports which would have crippled the business. The company has now agreed to a 2% pay rise for employees and a lump-sum payment of £500 after talks with the Unite union reached a successful conclusion. So why has BAA given in to the Unite union's demands?
There is no doubt that many companies around the UK are now looking to avert strike action in the short to medium term because this can have an enormous detrimental impact upon not only their business but their balance sheets. We only have to look towards the British Airways ongoing dispute with the unions to see what kind of damage this can do with the company losing hundreds of millions of pounds in lost revenue, seeing its balance sheets stretched to the limit and also losing customers because of unpredictable strike action.
The deal from BAA has yet to be voted upon by Unite members although it seems highly likely that the unions will support the offer and recommend members to accept the deal. Whether this has set some kind of precedent for the future remains to be seen but in this particular battle it would appear that the unions have gained the upper hand.
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