Strike: BA and Unite Union Positions Prove Irreconcilable - Management Assignment Help

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Report from the Guardian newspaper: 20 March 2010
Strike: BA and Unite union positions prove irreconcilable
Leak to media about BA losses and Walsh and Woodley's combative characters helped dash hopes of resolution
The fraught history of industrial relations at British Airways will have its darkest day in 13 years today when a three-day cabin crew walkout begins.
Sources close to the last-ditch talks between Willie Walsh, BA chief executive, and Tony Woodley, Unite joint general secretary, said significant differences remained between both sides, with no hope of a resolution by last night's midnight deadline.
BA and Unite have been haggling over Walsh's decision last year unilaterally to remove at least one cabin crew member from all flights through a voluntary redundancy programme, shaving £62.5m from BA's cost base. Unite, furious at the imposition of the change, has been proposing alternative means of getting to the same level of cost savings while repealing the majority of staff cuts.
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Both positions were clearly proving irreconcilable by yesterday morning, according to one source close to the face-to-face discussions at the TUC offices in central London.
"The doors were closed but you could still hear their voices," said the source. Industrial disputes have changed since the 1970s after reforms brought in by Margaret Thatcher, but the TUC discussions contained elements of a throwback to more confrontational times. "They are both streetfighting types. So you can imagine what the discussions have been like," said the source.
Woodley, a 62-year-old former car worker from Merseyside, is described by his officials as a "terrier", who will not stop talking until all options have been exhausted. Walsh, a 48-year-old Dubliner, was formerly an active trade unionist at Ireland's national carrier, Aer Lingus. He is equally combative and, according to one witness at the talks, has clearly had his patience strained by the dispute.
Walsh is believed to be particularly angered by Woodley's apparent inability to rein in his cabin crew branches, Bassa and Cabin Crew 89, which are fiercely opposed to the staffing cuts.
For all the parallels to the chest-beating of the 1970s, the advent of a modern 24-hour news culture has hampered progress. The BA boss is understood to have reacted angrily at the TUC when sensitive information, including an admission that the airline had lost £27m and 100,000 passengers due to the strike, immediately found its way into the media.
BA's share price wobbled after those revelations on Thursday and, according to observers, so did the chances of doing a deal.
However, the inadvertent leak of financial details was not the pivotal moment in a dispute that has lasted for nearly a year. The key episode arguably occurred on Thursday last week, when Unite's joint general secretary, Derek Simpson, set in motion a possible resolution to the row. BA, having rejected Unite's proposals, had tabled an offer that comprised a partial repeal of the staffing cuts and a three-year pay deal.
Simpson told Bassa and Cabin Crew 89 representatives that the offer would go to a consultative ballot, while setting strike dates for 20-22 March and 27-30 March. Unbeknown to BA, there were heated discussions between the shop stewards and Simpson, with the Bassa officials arguing that BA's offer was derisory.
Observers say that at this point, it appeared that cabin crew were keen to resolve the dispute: soundings indicated that the BA deal might well have received sufficient support to at least suspend the strikes.
The poll never happened. Just over an hour after Unite announced the consultative ballot, Walsh announced on the BBC that he had withdrawn the offer, furious that Unite had announced strike dates. He then refused entreaties from Woodley to reinstate the offer in exchange for suspending the strikes – a further sign that Unite was desperate for a truce.
History may mark this as the moment when the first BA cabin strike in more than a decade was doomed to go ahead.
The final walkout occurred yesterday afternoon when Walsh tabled an offer that, according to Woodley, was much worse. Walsh, who has argued that BA has done all it can to achieve a deal, believes that the £27m lost to the dispute must be recouped in a revised offer.
Another view is that the fundamental cause of the walkout is the dysfunctional relationship between the airline and some of its unions. BA says it gave Unite ample opportunity to negotiate changes and was forced to introduce the crew alterations, which do not break contractual law, because of union foot-dragging.
Yesterday, cabin crew attending a Unite rally at Sandown racecourse said they would have accepted the changes had they been consulted.
One cabin service director – the rank that runs the onboard service during flights – claimed staff would have accepted reductions in crew numbers had BA negotiated the move. "I have had all this extra workload, doing my own job and working a trolley. I can't tell you how exhausted I am," she said. "But I would very happily take that role on had it been discussed. We do appreciate the economic climate that we are in."
One element of BA's final offer was telling. In a letter to Woodley, Walsh said he wanted stable industrial relations and appeared to express exasperation at the Bassa relationship. He added: "We believe the best way of guaranteeing this is through fundamentally changing the industrial relations environment."
https://www.theguardian.com/business/2010/mar/20/willie-walsh-tony-woodley-unite
From Guardian newspaper: 12 May 2011
BA and Unite reach deal to end cabin crew strikes
Union members to vote on settlement with British Airways that restores travel privileges and takes sackings into arbitration
An agreement has been reached to end the long-running British Airways cabin crew dispute, the Unite union has confirmed.
The deal is being put to a mass meeting of Unite members near Heathrow airport and is expected to be recommended for acceptance in a ballot.
The deal will end 18 months of hostilities that included 22 days of walkouts. It includes the restoration of travel concessions for cabin crew, the issue that was holding up a settlement.
The Unite leader, Len McCluskey, said he was "delighted" to have reached an agreement and it was good news for the workers, the airline and its customers.
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Bassa, Unite's main cabin crew branch, said in email to members: "The talks have now concluded to the satisfaction of both parties.
"If the branch agrees, the negotiated settlement will be put to the full membership in a postal ballot."
McCluskey said: "We always said that this dispute could only be settled by negotiation, not by confrontation or litigation. And so it has proved.
"We are delighted to have reached an agreement which I believe recognises the rights and dignity of cabin crew as well as the commercial requirements of the company. This agreement will allow us to go forward in partnership together to strengthen this great British company – good news for BA, its employees and its customers alike.
"I am particularly pleased that staff travel concessions will be restored in full with the signing of the agreement and the implementation of the new structure for working together that we have negotiated. A customer-oriented business can only succeed with all its employees valued and respected.
A BA spokesman said: "On behalf of our customers we are very pleased the threat of industrial action has been lifted and that we have reached a point where we can put this dispute behind us.
"Our agreement with Unite involves acknowledgement by the union that the cost-saving structural changes we have made in cabin crew operations are permanent.
"We have also agreed changes that will modernise our crew industrial relations and help ensure that this kind of dispute cannot occur again."
Two previous peace agreements were scrapped after Unite declined to recommend them because of concerns over sanctions against crew members who took part in strikes last year.
It is understood the agreement restores staff travel perks stripped from thousands of crew who took part in the strikes, as well as allowing arbitration of the dozens of disciplinary cases – including sackings – that were linked to the dispute.
BA's worst ever industrial relations dispute began in 2009 when the airline unilaterally reduced staffing levels on long-haul flights after a voluntary redundancy programme. Unite launched a strike ballot in protest at the cuts and the lack of consultation, triggering a year of high court hearings, strike votes and walkouts.
Changes in leadership on both sides this year raised hopes of a deal being struck. Willie Walsh, who had been BA's chief executive, moved upstairs to the airline's parent group and Tony Woodley, the joint general secretary of Unite, handed over the reins to McCluskey.
https://www.theguardian.com/business/2011/may/12/british-airways-crew-strike-deal
From Guardian newspaper website: 6 September 2019
Why are British Airways pilots going on strike for the first time?
Reasons cited include pay dispute, cost-cutting policies and loss of confidence in management.
What has gone so wrong that British Airways pilots earning six-figure salaries are angry enough to strike? On Monday and Tuesday, the majority of BA’s 4,300 pilots based at Heathrow and Gatwick will down tools for the first pilot strike in the airline’s history. BA would usually operate almost 800 flights a day carrying 145,000 passengers, most of which would have now been cancelled or rebooked.
In the midst of Britain’s political turmoil, it seems fitting that the flag carrier should also be lumbering into crisis. In cost and cancellations, the strike will likely eclipse even the bitter BA cabin crew dispute of 2010-11. An eight-month pay negotiation has broken down, despite an offer worth 11.9% over three years having been made.
Pilots represented by the Balpa union have rejected this and have asked for the kind of profit share enjoyed by directors, plus an above-inflation pay guarantee.
Few people would be dissatisfied with a BA pilot’s pay. Perhaps only Álex Cruz, the company’s chief executive, who is currently paid £1.3m, would be pained to earn a captain’s £167,000 plus allowances. But Cruz firmly believes the pay deal on offer is good enough. When strike dates were announced, he said blame laid “squarely at the door” of Balpa.
Strikes, IT failures, customer unrest: can BA pull out of this nosedive?
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Cruz added: “I personally believe BA pilots are the best in the world … but I think they have been very badly served by the union.” But 93% of pilots voted for industrial action, on a 90% turnout. Brian Strutton, the general secretary of Balpa, said: “BA does pay well and has good terms and conditions.
“And yet almost all of its pilots wanted to go on strike. You’ve got to look at what the company is doing to generate that level of ill-feeling among their staff.”
One striking pilot, a long-serving BA employee based at Heathrow, said: “It’s the pilots pushing the union rather than the other way round.
“Pilots are logical thinkers, they are not going to be led by the nose, no union leader is going to whip them up. Only management has the ability to do that. Communications from Álex Cruz have made pilots more angry, not less.”
Speaking on condition of anonymity, he said: “It’s not really about money, it’s about respect. We’ve effectively been lied to. We’ve given up a serious pension scheme, pay and pay rises when the company was weak – all on the promise that when the company was strong and giving up proper returns to its investors, we would benefit.”
BA, which has been approached for comment, said this week that it has “acted with integrity through many months of negotiations” and accused Balpa of backtracking on an agreement.
In terms of pure profit, BA’s lean years are in the past. Its generous but burdensome pension scheme has been closed, saving BA an estimated £800m, according to Balpa. The airline is the cash cow of IAG, making more than £2bn in pre-tax profit in 2018. “And now that we’ve asked for a little bit of payback, it’s not there,” the pilot added.
Day-to-day gripes associated with cost cutting have furthered pilots’ disenchantment, he said, including slow responses to minor engineering issues – “not a safety risk,” said the pilot “but you wouldn’t expect it at an airline like BA” – to worsening food and accommodation for long-haul flight stopovers.
Complaints have headed into a void, the pilot said: “The stress is such that the pilots are trying to say – you’ve not been listening to us.”
BA has said the pay deal would take some captains to more than £200,000 a year after three years. The pilot admitted he was well paid, but said other colleagues struggled to reach that point: “Many pilots are working flat out, they are not likely to get a decent pension, it’s a much longer pay scale to progress to higher pay.”
According to Balpa, a cadet pilot comes in at about £27,000 and a first officer £59,000, while captains start at £78,000, making about £100,000 a more typical basic wage.
While the row is pinned to pay, Strutton said: “There are a lot of factors. BA pilots have lost confidence in the management and direction of the airline. A cost-cutting regime has reduced the quality of the service pilots want to give to the customers, as well as affecting themselves. The cumulative effect is a serious groundswell of bad feeling.”
Meltdowns at BA, in particular IT outages, have fuelled that feeling. The power cut that left 75,000 passengers stranded in May 2017 also disrupted the lives of pilots and crew, and they were left to deal with the fallout.
“Management decisions are being taken that impinge on the working lives and quality of service that pilots and BA staff can deliver. They feel that quality should be the ethos of BA, and they don’t think that it is,” Strutton said.
More strikes could follow. A further walkout is due on 27 September, although BA has yet to cancel those flights, and Balpa has a mandate for action until January.
On Thursday, BA furiously rebuffed an offer of new talks and accused Strutton of reneging on an agreement struck during talks in August, which he denied: “Categorically, no, we didn’t shake hands on the deal.”
Strutton said he was “running out of ideas to try to avoid the strike”, which he said would be bruising for all parties. “We need to start rebuilding the relationship of trust and confidence, which is so sadly lacking,” he added.
https://www.theguardian.com/business/2019/sep/06/ba-strike-4300-staff-to-take-part-in-airlines-first-ever-pilot-walkout
Report from Financial Times newspaper: 9 September 2019
British Airways chief admits historic strike will ‘punish brand’
Alex Cruz lambasts pilots’ walkout as ‘cynical’ as customers face two days of disruption

British Airways chief executive Alex Cruz admitted that the first pilots’ strike in the airline’s history will “punish the brand”, as its operations ground to a halt on Monday.
More than 280,000 of BA’s customers are expected to be affected by the walkout over pay, which began at midnight and already prompted the cancellation of dozens of flights on Sunday.
“I’m really sorry that the cynical actions of the pilots’ union has put us in this position,” Mr Cruz told the BBC on Monday. “It’s going to punish customers, it’s going to punish our brand.”
The disruption that has led to all but a few flights being cancelled on Monday and Tuesday will also roll into Wednesday. Most customers have been notified of changes to affected flights but additional unexpected cancellations could occur on Wednesday.
The row with pilots over pay, the gravest industrial action in the airline’s history, escalated on Friday when BA threatened to strip strikers and their families of perks, such as heavily subsidised travel, for three years.
Brian Strutton, general secretary of pilots’ union Balpa, said on Sunday that the union would challenge the measure in the courts, adding that the action made the dispute “harder to resolve”.
“This threatening behaviour is expected from BA,” he said. “We knew they were going to threaten to do that, it’s what they do in every strike dispute.
“This strike will have cost the company considerably more than the investment needed to settle this dispute,” said Mr Strutton. “It is time to get back to the negotiating table and put together a serious offer that will end this dispute.”
BA said: “We remain ready and willing to return to talks with Balpa.”
The union offered to hold last-ditch talks last week but BA said it would only meet if there were no preconditions. BA has previously said the strikes would cost it up to £40m a day.
Pilots are now planning for extended strike action that would prolong the chaos from this week. The Financial Times reported on Friday that thousands of BA pilots had drawn up plans to contribute to a private fund for an extended strike period that would see hundreds more flights grounded in the coming months.
An additional strike is already planned for September 27, after nine months of pay negotiations between the two sides. Pilots asked for a three-year deal with better profit-sharing, but BA claimed its pay offer of 11.5 per cent over that period was fair.
The Unite and GMB unions, which represent nine out of 10 BA staff, had recommended the same pay offer to their members.
An average BA pilot earns about £90,000, according to the airline. Captains earn an average of £167,000 plus £16,000 in allowances and the proposed pay rise would take them to more than £200,000.
https://www.ft.com/content/b97ac568-d226-11e9-a0bd-ab8ec6435630
Report from Personnel Today: 26 May 2020
BA plans to re-hire employees on worse terms, claim unions
The Unite union has accused British Airways of plans to “re-hire” most of its workforce on less favourable terms and conditions.
The airline, which is owned by International Airlines Group, announced last month that it was in consultation to make around 12,000 staff redundant.
Terms and conditions
Coronavirus: Temporary changes to workplace policies and procedures
However, Unite and GMB have been accused of failing to attend consultation meetings to discuss plans. Pilots’ union Balpa has been the only union to engage, according to a letter sent to staff on Friday by BA chief executive Alex Cruz.
In the letter he wrote: “Consultation is so important, and productive conversations are already being held with Balpa. I am sorry that neither Unite nor GMB have attended any of the daily meetings they are invited to so that they can provide ideas and input into any of the other proposed changes, and maximise the number of jobs saved.”
Unite and GMB said they were unable to negotiate with the airline on the redundancies while thousands of workers are on furlough, and because social distancing rules meant large group meetings were not possible.
Now the unions claim that BA will fire the vast majority of its workforce and rehire them on reduced pay and worse terms.
Unite’s general secretary, Len McCluskey said: “We cannot tolerate BA using this crisis as cover to impose a long-term plan to slash jobs, pay and conditions.
“No other employer has threatened to effectively fire and rehire its entire workforce. Over 40,000 loyal BA staff now face the prospect of losing either their livelihoods or potentially being re-interviewed for their own jobs on vastly reduced terms and conditions.
“If the proposals were about dealing with the Covid crisis, why is the company threatening to terminate contracts, including eliminating disciplinary procedures? This will not help the company get through Covid-19. This is nothing more than a cynical act of corporate greed and a betrayal of the BA workforce and Britain.”
McCluskey has written to IAG to demand it withdraws its Section 188 notice – the notice that triggers a collective redundancy consultation period, which is thought to end mid-June for BA employees – and allows more time for meaningful negotiations.
A BA spokesperson said the company was acting to “protect as many jobs as possible”.
“The airline industry is facing the deepest structural change in its history, as well as facing a severely weakened global economy. We are committed to consulting openly with our unions and our people as we prepare for a new future.”
Another employer – Auto Windscreens – has also come under fire for imposing a unilateral 20% pay cut on staff, even though not every employee agreed to the variation in terms.
The Guardian reports that the company had asked staff who are not on furlough to take the temporary pay cut in early April and give up sick pay, and 97% of employees agreed.
But while Auto Windscreens’ owner Markerstudy Group told employees that any refusal of the proposals would be dealt with individually, pay has been cut for all employees backdated to 1 April.
A spokesperson told the newspaper: “In order to try and preserve as many jobs as possible, [the company] took the difficult decision to ask staff to agree to a variation to some of their terms and conditions.
“The group received overwhelming support from almost 98% of staff who have appreciated the need for this in order to attempt to secure the group’s continued viability. Markerstudy has worked with staff to try and minimise, insofar as possible, the significant impact of the coronavirus pandemic on every area of their business.”
https://www.personneltoday.com/hr/ba-plans-to-re-hire-employees-on-worse-terms-claim-unions/
Report from Unite the Union website: Thursday 20 August 2020
BA staff overwhelmingly reaffirm that the fight goes on with call for strike action
British Airways ground staff and cabin crew were among those today (Thursday) who have given overwhelmingly called for strike action to fight their employer `all the way' in the defence of their jobs, wages and redundancy pay.
At a socially-distanced gathering of over 1000 BA cabin crew, ground and other staff held today (Thursday) near Heathrow airport, furious workers instructed their union, Unite, to proceed to widespread industrial and legal action against their employer.
Crew, ground staff and other workers across the airline are furious that while they are losing their jobs and potentially 43 per cent of their earnings, management is untouched by the attacks on pay and conditions.
Workers have also been told that should they be offered a place with the company going forward, they will find themselves on zero hours-type contracts that give them no stability or security.
Unite has warned BA that its conduct has left it exposed to strikes and continuous litigation as the airline has forced thousands to accept voluntary redundancies only to change the terms of that offer leaving workers potentially thousands of pounds out of pocket.
Not content with its aggressive `fire and rehire' and redundancy plans which will see over 10,000 workers lose their jobs by September with the rest retained on far inferior pay and conditions, BA has now moved to force through zero-hours type contracts and is refusing to honour a long-standing redundancy agreement.
Commenting after the mass meeting held at Bedfont FC, Unite's assistant general secretary Howard Beckett said: "British Airways is reaping what it has sowed. It's systematic, brutal and needless attacks on its workforce will see it inevitably faced with strikes in the autumn along with the persistent threat of disruption through widespread legal action.
"This workforce was absolutely clear today; this fight will go all the way and it will last until BA stops behaving like an abusive Victorian mill owner.
"This is the twenty-first century yet Willie Walsh insists on treating skilled workers like trash with no control over when they will work or what they will earn.
"With a new airline set to be purchased and managers getting a free pass in this so-called crisis, the idea that this is a business in trouble is a lie.
"Enough is enough. We will now instruct our legal specialists to proceed to industrial and legal action, which will hit BA in the autumn. BA has given these workers no other choice but with Unite by their side, we will fight this all the way."
Oliver Richardson, Unite's national officer for civil aviation added: "BA's behaviour is inhumane but it is made worse because it is also needless. This business is sitting on billions, built on the hard graft of the very workforce that the airline is hellbent on treating so abysmally.
"In his haste to use the opportunity of this crisis to fulfil his long-standing desire of reshaping BA as a low-cost carrier but with higher prices and ever fatter rewards for the boardroom, Mr Walsh has overlooked the pride that this workforce feel about the service that they provide BA passengers. They are determined to prevent him from finally destroying this once-great airline and we support them all the way.
"He has pushed this workforce to a place where they have nothing to lose, where trust and hope have been destroyed. That is a very dangerous place for a business to be."
https://unitetheunion.org/news-events/news/2020/august/ba-staff-overwhelmingly-reaffirm-that-the-fight-goes-on-with-call-for-strike-action/
Report from Unite the union website: 7 December 2020
British Airways cargo workers vote overwhelmingly for strike action in fire and rehire dispute
Cargo workers at British Airways have voted overwhelmingly in favour of strike action in the bitter dispute over the company’s plans to fire and rehire its entire workforce and re-employ them on vastly inferior terms and conditions.
Huge yes vote
The workforce, who are members of Unite, the UK’s leading aviation union, recorded a 98 per cent yes vote in favour of strike action. The union represents in the region of 850 members in BA’s cargo handling business.
Despite BA management's bullying and its attempts to inflict changes by firing and rehiring its workforce, Unite will delay immediately announcing strike dates, in order to give the company a final opportunity to reach a fair resolution and agree changes with its workers.
Big pay cuts
BA is attempting to force the cargo workers to accept new contracts which will result in many of them experiencing pay cuts of between 20-25 per cent, with the entire workforce experiencing significant reductions to its terms and conditions.
Unite has reached agreement with British Airways in all the other sections of the company where it represents workers, to mitigate its proposals to slash workers’ wages, but has been unable to do so for the cargo workers due to the continued intransigence of management.
Cargo deliveries
Perversely, while the Covid-19 pandemic has led to a huge reduction in aircraft passengers, the demand for cargo services has remained largely unaffected.
The BA cargo workers have played a crucial role during both lockdowns in helping to ensure that vital supplies are delivered to the UK.
With the ending of the Brexit transition period on 31 December likely to result in substantial delays at UK ports, airline cargo services will play an essential role in ensuring that perishable goods are not delayed in arriving in the UK.
Industrial aggression
Unite assistant general secretary Howard Beckett said: “Unite members have stood up to the industrial aggression of British Airways and have overwhelmingly voted for strike action.
“The huge yes vote by cargo workers must act as a final wake up call to British Airways.
“Unite is delaying the announcement of strike dates to allow Shaun Doyle, British Airways' new chief executive, to do the right thing. He needs to withdraw the threats of firing and rehiring its cargo workers and hammer out a fair deal for this loyal workforce.
“If British Airways fails to grasp this opportunity for peace then Unite will swiftly move to strike action which will cause huge unnecessary disruption to British Airways cargo deliveries.”
Report from Union News website: 27 January 2021
Win! Unite calls off strikes after BA agrees to scrap fire-and-rehire scheme
Unite has secured a deal – subject to a members’ ballot – to end the long running dispute over British Airways’ plans to fire and rehire the workforce in its cargo division.
Members of Unite employed at BA Cargo, the majority of whom work at Heathrow Airport, undertook nine days of strike action over the Christmas/New Year period which caused overwhelming disruption to the company’s cargo services.
Unite had proposed a total of a further nine days of strike action beginning on Friday 22 January but the first three days were called off at the last minute, after progress was made at the negotiations. The next round of strikes due to begin this weekend have also been called off.
The key points of the deal agreed between Unite and British Airways are as follows:
End of fire and rehire (the last area of BA where this was a threat)
Workers will revert to previous contractual provisions subject to agreed changes
No compulsory redundancies
Improved pay protection for staff whose pay sits above the new agreed rates (up to 95 per cent of present pay rates)
An increase in pay for a significant proportion of staff
Members who did not sign the new contract and were dismissed will be offered their jobs back on the agreed terms.
The logjam in the negotiations was broken last week, when British Airways’ new chief executive officer Sean Doyle became directly involved.
Unite assistant general secretary Howard Beckett said: “This is a tremendous result and finally ends the threat of workers in BA Cargo being fired and rehired at British Airways. Huge credit must go to our members in BA Cargo, who firstly overwhelmingly voted for strike action and then delivered on that commitment by undertaking nine days of solid strike action, in the teeth of the Covid-19 pandemic.
“Without our members’ commitment and sacrifice there is no doubt it would have been impossible to get BA to reverse its fire and rehire plans.
“Unite recognises the personal involvement of Sean Doyle, the new CEO of BA, as significant in achieving a negotiated settlement that our reps now feel able to recommend to our members.
“Fire and rehire is proving to be the present day go to weapon of the worst type of employers. Workers up and down our nations in many instances are being forced to pay for the Covid crisis with reduced terms and conditions.
“Unite is proud to have reversed this practice in BA and will continue to fight fire and rehire wherever it raises its ugly head.
“It is workers who will rebuild our industrial sectors post-Covid and they can only do so if their terms and conditions reflect the work they have undertaken over many years to build the profit of companies such as BA.”
Unite’s members at BA Cargo will now be balloted on the deal, however it is anticipated that it will be accepted.
The level of anger among Unite’s members in BA Cargo about the company’s fire and rehire proposals, was underlined by the fact that they recorded a 98% ‘Yes’ vote in favour of strike action.

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