British Airways, unions hail new start after "peace deal"

May 12, 2011, 15:11 GMT

London - British Airways (BA) Thursday struck a deal with trade unions to end a bitter dispute over pay and conditions for cabin staff that prompted repeated industrial actions over the past 18 months.

Both sides hailed the agreement as a fresh start in their troubled relations, which saw hundreds of thousands of passengers hit by repeated strike action and left BA's reputation severely damaged.

'Our airline has a great future, and everyone within it intends to move forward together,' announced BA. A statement stressed that changes were agreed to 'modernize' industrial relations to ensure that 'this kind of dispute cannot occur again.'

Len McCluskey, the head of the Unite trade union, also spoke of moving into a 'positive future' with BA, after unions had been made to feel that their role within the company was being 'respected.'

The agreement had the potential to make BA an 'iconic British company once more' and to repair the damage that had been done to the brand, said the trade union leader.

The deal, announced by Unite, led to the immediate withdrawal of strike action threatened for next week. It will be put to members for approval in a ballot.

In addition to improved pay and conditions for the company's 13,500 cabin attendants, the deal envisages the reinstatement of travel concessions removed from staff during the dispute, while workers who are sacked or disciplined are to have their cases reviewed by an independent tribunal.

The union had also agreed that pay rises this year and the next, of 4 per cent and 3.5 per cent respectively, would be linked to productivity.

A series of strikes in early 2010 was estimated to have cost BA around 150 million pounds (243 million dollars). The dispute initially centred on BA plans to reduce the number of cabin crew on long-haul flights in a cost-cutting move, but deteriorated sharply when BA took disciplinary measures against staff involved in industrial action.

McCluskey made clear Thursday that the arrival at BA of new chief executive Keith Williams had been crucial in reaching the deal. After the change in management, BA and the unions could 'now move forward together,' said McCluskley.

His remarks were seen as a swipe at Willie Walsh, the former BA chief executive, who was said to have taken a hard line in the dispute, which began in November 2009.

Walsh is now chief executive of International Airlines Group (IAG), the management company formed following BA's merger with Spanish carrier Iberia in January.

IAG last week reported a 15-per-cent rise in revenues due to growing passenger volumes in the first quarter of 2011.

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