March 10, 2010
Talks between British Airways and unions aimed at averting a strike by the airline’s cabin crew have broken down, the Trades Union Congress said on Wednesday.
The TUC, which has been mediating the negotiations, did not give any details about when the proposed strike might go ahead.
“Despite a prolonged period of negotiations it has not been possible to reach agreement between BA and Unite,” TUC General Secretary Brendan Barber said in a statement.
“Both parties will be reflecting on the position and the TUC will be keeping in touch but at this stage no further negotiations are planned.”
The Unite union balloted some 13,000 cabin crew members on industrial action last month as part of a dispute over job losses and changes to working practices.
Unite said 81 percent of the 9,000 crew who returned the ballots voted in favour of strike action.
BA wants three-quarters of its crew to accept a pay freeze this year, and for 3,000 staff to switch to part-time working, along with a reduction in onboard crewing levels from 15 to 14 on long-haul flights from London Heathrow.
The union opened a new ballot after a planned 12-day strike over Christmas was ruled unlawful.
BA shares, which have risen 20 percent so far this year, closed 3.7 percent higher at 231.3 pence on Wednesday.
BA’s chief executive, Willie Walsh, has said the airline must move away from its old, inefficient ways if long-term survival is to be ensured.
Walsh has said changes at the airline, which analysts believe is losing around GBP£1.5 million pounds a day, are essential to help repair its precarious finances.
Earlier this month BA posted a surprise third-quarter operating profit, helped by heavy cost cutting, but said it was still on-track to report a record full-year loss.
(Reuters)