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British Airways is reported to have asked all staff to sign new ‘zero hour’ contracts allowing the airline to fire them without negotiations.
The embattled carrier has already announced plans to send 12,000 workers ‘to unemployment’ due to the coronavirus crisis, and warned it may end operations at Gatwick, London City Airport and even Heathrow.
Its Spanish owner, International Airlines Group (IAG), has applied for a £ 900 million loan to Madrid for its operations in Spain, Iberian Airways and Vueling.
However, it has not asked London for a similar bailout. This is believed to be an attempt to force other companies out of the UK market.
Unite the Union yesterday ordered legal proceedings against the airline and demanded that the business support its UK workers.
British Airways has reportedly asked staff to sign contracts as it operates less than five percent of its normal hours. BA planes are shown parked in Bournemouth, Dorset
It has revealed plans to lay off a quarter of its workforce and has suspended more than half. Planes shown above parked at Bournemouth Airport
The crisis hit airlines heavily, prompting analysts to warn that the industry could explode. In the photo above is the empty Heathrow Airport
The Sun reported on BA’s plan to change staff contracts Sunday, and union leaders fear employees may be misled in the deal.
Unite’s national aviation officer Oliver Richardson accused BA of opportunism of “crush and grab” on Friday.
He said that while the parent company’s actions to seek a bailout in Spain would be welcome, it was “worrying” that a similar deal was not sought in Britain.
“This is another great insult to the UK workforce that BA plans to send into unemployment,” he said.
“Rather than trying to preserve working and worker terms and conditions and acting for the good of the UK aviation sector, BA is guilty of crushing and exploiting opportunism.”
Coronavirus has also seen passengers away from Gatwick airport, pictured, as international travel is suspended
Unite the Union launched legal action against BA yesterday and asked the airline to seek a bailout for its UK workers. Until now, its owner has only done that for workers in Spain
A leaked memo to BALPA this week revealed that the airline is considering stopping its last remaining Heathrow flights. Gatwick and London City flights have already been suspended
BA’s 12,000 layoffs represent a quarter of its workforce and come after the airline laid off 22,626 employees, more than half of the total 45,000.
Under the plans, the airline would cut 1,130 captain and co-pilot jobs from its 4,346 staff.
In a leaked note to BALPA, reported by the BBC, the airline warned that it could be forced to suspend the few services that are still without Heathrow as there are “no clear signs of improvement in the demand for air passengers.”
“We have not ruled out suspending the rest of our Heathrow operation,” he said.
‘In the last week, we operate less than five percent of our normal hours.
“Our operations in Gatwick and London City are now closed and there is no certainty as to when they can return.”
Its CEO, Alex Cruz, wrote to staff on April 28 that the airline is having to prepare for a “new future.”
The airline saw its total revenue decrease by € 700 million in the first quarter of this year, as it decreased to € 4.6 billion.
This resulted in an operating loss of € 535 million compared to a profit of € 135 million last year.
“The operating result in the first two months of 2020 was similar to last year,” Cruz said, “despite the suspension of flights to China due to Covid-19 since the end of January.”
There have been rumors that the airline may withdraw from Gatwick and London City Airport.
However, BALPA union general secretary Brian Struttion said: “As far as BALPA is aware, there is no truth to the rumor that BA will withdraw from Gatwick and there has been no indication of that from BA for us. ” However, it’s on our list of questions to ask them. ‘
Airlines around the world have been hit hard by the pandemic, which has seen air travel drop to near zero levels as nations impose blockades to stop the spread of the disease.
The UK government has turned to Morgan Stanley for advice on packages that could help keep the airline sector, once a leader in Britain, afloat, after warnings that the industry could explode.
EasyJet, Jet2 and Loganair have landed their planes as companies try to avoid the pandemic.
Ryanair also pulled its fleet out of the sky and announced that it does not expect passenger numbers to rise again to pre-crisis levels until at least 2022.
Chief Executive Michael O’Leary also warned that the planes would remain on the ground until “at least July.”
Wizz Air has announced that it is looking to restart some flights to Spain, Portugal and Eastern Europe this month, before saying it would also need a bailout from UK authorities.
Virgin Atlantic has also sought a bailout from the UK government. 51 percent belongs to Richard Branson’s Virgin Group and 49 percent belongs to the US airline Delta.
Until now, the British government has been cautious about bailing out travel companies and in March allowed the collapse of regional airline Flybe, which became one of the first major corporate victims of the outbreak.
British Airways aircraft pictured sitting upstairs at London Gatwick Airport, Crawley
A Virgin Atlantic spokeswoman said she was exploring all available options for additional external credit, adding that she was working with Houlihan Lokey on financing the private sector and that the ongoing discussions with stakeholders were “constructive.”
Meanwhile, Branson and Virgin Group were committed to the airline and were not seeking to sell it, a representative for the group said Friday.
BA said: “We cannot comment further while consulting with our unions.”
