More than 6,000 British Airways personnel have accepted voluntary redundancy as the airline moves to tell thousands more cabin crew and ground staff whether or not they will keep their jobs or face pay cuts as a result of COVID-19.
BA, who had hoped to cut 12,000 jobs as a means of slashing costs, will now be sending one of three letters to affected staff who have not taken voluntary redundancy.
Cabin crew and ground staff will either be informed that they have been made redundant, have a role but will have to sign a new contract – most likely with lower pay and worse terms and conditions – or that they will continue in the same role with the same contract.
Those made redundant will be given the option of entering the airline’s priority return talent pool and will be fast-tracked into any new roles that become available.
The scheme, dubbed “fire and rehire”, has been condemned by Unions, who say it is being used to push the 30,000 employees who will still have jobs on to downgraded terms and conditions.
MPs on the Commons transport select committee labelled British Airways “a national disgrace” in June for making a “calculated attempt to take advantage of the pandemic” to try to slash its staff terms and conditions.
IAG, BA’s parent company, which also owns Iberia and Aer Lingus, reported a record loss of €4.2bn (£3.8bn) in the first half of the year as passenger numbers fell by 98% in the second quarter. The group, which is raising €2.75bn to strengthen its balance sheet to weather the crisis, made a €1.1bn profit in the first half of last year.
“Our half-year results clearly show the enormous financial impact of Covid-19 on our business,” a spokesman for British Airways said. “We are having to make difficult decisions and take every possible action now to protect as many jobs as possible. And, while we never could have anticipated being in a position of making redundancies, more than 6,000 of our colleagues have now indicated that they wish to take voluntary redundancy from BA.”
Unite, the largest trade union representing thousands of BA employees, including cabin crew, engineers and maintenance staff, has warned of balloting for potential strike action over the plans.