British Airways asks employees to work without pay

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The Mike

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This is an interesting development in this economy....


British Airways asks employees to work without pay
British Airways asks its employees to volunteer for periods of unpaid work

On Tuesday June 16, 2009, 2:08 pm EDT
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LONDON (AP) -- British Airways on Tuesday urged its staff to work for nothing in an effort to save the company money.

British Airways PLC is struggling to come up with ways to save cash after reporting its biggest full-year loss since the former national airline was privatized in 1987.

BA chief Willie Walsh has said he would not draw a salary for the month of July, and urged other employees to work for blocks of time without being paid.

"I am looking for every single part of the company to take part in some way in this cash-effective way of helping the company's survival plan. It really counts," Walsh said in a company publication.

BA said the option meant employees would effectively volunteer to take a cut in base pay, with the lost income spread out over several months. The company had said last month it would ask employees to consider working without pay.

The UNITE union, which represents thousands of BA ground and cabin crew, gave the proposal a chilly reception. The union said that while Walsh might be able to afford working a month for free, its members could not.

BA said last month that it had lost 375 million pounds ($595 million) in the year ending March 31, compared with a profit of 712 million pounds in the previous year. That is its worst result in more than two decades of business, the previous low point being a 200 million pounds loss in 2001-2002.
 
BA chief Willie Walsh has said he would not draw a salary for the month of July, and urged other employees to work for blocks of time without being paid.

What a sacrifice. :rolleyes:
 
Seriously. Rich executives can afford to take pay cuts, the poor shlubs who clean the planes, stewardesses, and maintenance personnel can't and shouldn't have to.
 
This is an interesting development in this economy....

I tell them no. This has happened before where employees have been asked to take pay cuts and in the long run they usually get screwed in some way. Happened in my union too.

JUST SAY NO!
 
Seriously. Rich executives can afford to take pay cuts, the poor shlubs who clean the planes, stewardesses, and maintenance personnel can't and shouldn't have to.

Like the executives give a crap about them, the only time they get noticed by the brass is when their bin hasn't been emptied.
 
I don't know about their specific case, but supposedly it is tough for almost any airline to stay in business nowadays. The cost of maintenance, etc. is always going to be very high, the price of oil is going up again, and ticket sales are down due to the economy.
 
Major airlines are a dying breed. Smaller operations are going to be what comes out of the aftermath.
 
that's ridiculous!! a million dollar companie telling employees to work for free!

people have families and bills to pay for..even 1 month without a paycheck is too much when u have bills to pay!
 
It's not bull^^^^, it's reality. this happens with pay cuts as well. I think it must be a union thing. but ive heard of stories from fellow pilots of airlines that are not doing very well asking their employees to either take a paycut or they may get furloughed.

It's like pick your poision. WOrk for free or 'cheap' and still have a company, or dont and not have a job or company.

REalize that these employees especially pilots are counting on their retirement and benefits. if the company collapses they lose all of it.
 
Yeah I know it not bull****. Its just my expression. Times are hard nowadays and thats a hell of a position to be put in for a decision to have to make. Cut back hours and decide whats more important to get-needed prescription or pay the mortgage, or lose your job and pay neither. I feel bad for those guys, I really do.
Its just like where I work. The union was talking about the closure of 12 posts for the security company I work for. Of course thats the company and budget and all that. But they say it takes about 5 people to staff one post. So are they gonna lay off 60 people? Rumor has it that the company is hinting towards that. Here they wont give anyone the option to work for free. They'll give you walking papers.
Times are tough......
 
OK. Now that we have all dogged on the Airlines for making this request, lets put our heads together and come up with a solution for them. Here are a few:

1) Raise the air fares. This will work if it does not drive more people away from flying. And in this global economy, I would guess that is what would happen.

2) Staff layoffs. I bet they would wish they chose to work a month without pay as opposed to having no job at all, then.

3) Completely stop complimentary food...including peanuts...on the flights and warn people that if they want to eat on the flight...to bring their own food. This could work to a small degree. It seams to me that many of the airlines are heading in this direction, now.

4) Jack up the price of in-flight alcoholic drinks. I am not sure this would work...people would just stop buying or bring their own. I do not see that particular sevice being utilized all that often anyway.

5) Cut out movies in-flight. This could save a some. I don't know how much. But with iPods and laptops, people could bring their own movies.

6) Make sweeping cuts to management perks such as bonuses, retirements, and freebies. I think this would help a lot. The single problem there is that there tends to be a feeling of entitlement in those positions. Getting quality management personnel is not easy. The reason those perks exist is because of how competative the market is for Big Businesses looking for people who can push a company further, even when it appears that the company can't go much further. People with the knowledge, talent, and drive all at the same time are very rare. So, just like with anything else...the supply/demand ratio makes for the employment packages of these execs to get ridiculous.

7) Find more efficient ways to fly. This is ongoing, but not happening very fast. And some of the airlines may not survive long enough to enjoy it. It is too bad the the Boeing 797 story turned out to be a lie. It sure sounded good when it was circulating. And even when newer, more efficient airplanes are introduced, the benefit that travelers see is usually limited to the airfares not being raised as much because the improvements to the cost efficiency of the planes is offset by inflation in other areas.

8) Cut back on staff by attrition. They could simply stop hiring new staff until retirement or quitting for whatever reason thins the staff to one attendant per flight. This could be done quietly so that the airlines are not accused of cutting jobs and can be facilitated by implementing it in conjunction with a couple of the above suggestions like ending snack/meal/refreshment and movie services in flight.

So what do you all think? What else could the airlines do to keep from having to ask their employees to take pay cuts.
 
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