LONDON, July 30 — British Airways and its trade unions said today that they reached a settlement over a dispute that led to a wildcat strike. þþAfter 10 days of negotiations, the airline — which is in the midst of a cost-cutting program to eliminate 13,000 jobs — has agreed to give its administrative staff a 3 percent pay raise retroactive to January. The staff has agreed to an identification system that, by Sept. 1, will keep track electronically of the hours they work. The system was unpopular with members of the check-in staff, who feared that it was the first step to split shifts or sending employees home early when lines were short.þþBut British Airways has assured its three unions, the General Municipal and Boilermakers union, the Transport and General Workers Union and Amicus, that the card system will not affect their work hours. þþIt has also agreed to discuss changes it is considering in working conditions with unions and employees.þþUnions and management have been discussing the pay raise for six months. British Airways would not quantify its cost, but a spokesman said it did not expect the raise to be material to earnings.þþToday's agreement is ÿgood news for our customers, staff and shareholders,ÿ Mervyn Walker, British Airways's director of Heathrow, said in a statement.þþSir Bill Morris, the lead negotiator for the Transport and General Workers Union, called the agreement a ÿgood day for B.A. employees, a good day for the company and an even better day for passengers.ÿþþThe agreement came after an unofficial strike by counter agents that disrupted the travel plans of about 80,000 British Airway customers. On July 18 and 19, hundreds of British Airways counter agents walked off the job at Heathrow, halting the airline's operations there. More than 500 flights were canceled, and British Airways bookings have suffered since as travelers chose other airlines.þþVirgin Atlantic said last week that its bookings had more than doubled since the British Airways strike, and that it had to enlist extra call center workers to cope with the extra demand.þþAnalysts estimate that the walkout will cost British Airways about £30 million ($48.5 million). ÿLabor swings an enormous club in the airline industry because of the high fixed costs in the business,ÿ David Strine, an analyst at Bear, Stearns, said. ÿIf you disrupt operations for just a day or two, you can do enormous damage to the company, and to customer relationships.ÿþþThe damage comes during an already tough period for the airline industry. On Thursday British Airways is expected to report a loss for the quarter ended June 30 that analysts say could be anywhere from £50 million to £95 million, because the Iraq war and the threat of SARS cut travel plans. þþThe wildcat strike, which was neither condemned nor condoned by unions, highlighted the schism between British Airways management and its employees. Many other airlines, and even some divisions within British Airways, already use the swipe card system to keep track of employee hours.þþThe walkout was the most ÿradical moveÿ employees could have picked, said Chris Tarry, an independent airline analyst. þþBritish Airways management will need to keep a closer eye on employee morale, but the company has no choice but to push ahead with its cost-cutting plans, analysts said.þþÿThe world doesn't owe anyone a living anymore,ÿ Mr. Tarry said. British Airways's cost-cutting plans are ÿnot gratuitous scare tactics,ÿ he added. ÿThe problems in this industry are huge.ÿþþ
Source: NY Times
