Julia Simpson, director of corporate communications, British Airways
Yes—when working without pay is completely voluntary as it is at British Airways. We have made available a wide range of voluntary pay cut options to mitigate the effects of the huge economic challenge facing the business.
The aviation industry is confronted with the toughest trading environment in its history. More than 40 airlines have gone out of business in the past year. The former employees of these carriers will sadly have struggled to find employment in a sector looking to reduce controllable costs where possible.
We, like other companies, have asked staff from across BA to play an active role in helping to secure the airline's future and, by doing so, their own.
After we first offered unpaid leave of a month or more, we received feedback from staff that they would prefer to consider a wider range of options. These included the simplest form of voluntary pay cut-unpaid work for a minimum of a week with the salary deduction spread over several months.
The arrangement would relate only to basic pay. So anyone volunteering who normally also received allowances and shift pay would continue to do so.
We have received a fantastic first response, with nearly 7,000 members of staff signing up for different options, including temporary switches to part-time working. The total of 800 applying for unpaid work was probably 800 more than some in the media expected.
This response will generate savings of up to £10m for the company at a time when it is absolutely vital for us to conserve cash. Individuals really can make a difference.
Carolyn Jones, director, Institute of Employment Rights
Make the workers pay! It's a call too often heard and one that will no doubt be repeated in coming months as the crisis caused by financial speculation, fat-cat greed and shareholder self-interest plays itself out. But why should workers face such a brutal choice—your money or your job? Who does Willie Walsh think he is? A modern-day Dick Turpin?
Last year, BA notched up nearly £1bn in profits. This year it lost £401m. Surely now is the time to break into the rainy-day savings of nearly £600m? Or was that money not put aside for the bad times? Could it be that BA management, with all its highly paid skills and business acumen, did not see the bubble bursting?
I think the high-flying management did see a downturn ahead. That's why in 2007 it cut labour costs by hiving off BA's catering unit to Gate Gourmet; and why in 2008 it froze the pay of workers and axed 2,500 jobs. And why in 2009, it's asking its workers to donate a month's pay to the company.
Yet in each of those years dividends were paid out and the shareholders rewarded. So what happened to the collective spirit of "all in this together" in previous years? Workers are not daft. Yes, they will make sacrifices to save their jobs and protect their families. They are used to making sacrifices. But they will not shoulder the blame or carry the pain for a downturn not of their making.
It may well be that Walsh can afford to waive £62,000 of his annual £743,000 salary. But for those struggling to make ends meet each month, losing up to £1,500 is a cliff-edge disaster.
The answer? Take out the profit motive. Develop an integrated, publicly owned transport sector accountable to and servicing the public—including the workers.
www.ier.org.uk
