BA shares fall on FTSE 100 as strike looms

Cabin crew workers have already voted in favour of strike action in protest against BA’s decision to cut the number of cabin crew on long haul flights. BA says the cuts are needed in order to return the airline to profitability.

Last year BA reported a record loss of £401 million and is expected to announce even larger losses this year. The airline is currently trying to find savings of £62.5 million.

Last night’s talks fell apart after BA rejected a proposal from Unite which accepted last year’s pay freeze for cabin crew workers, proposed a 2.6 per cent pay cut this year, followed by a pay rise and a bonus next year. BA however said that the proposals would not generate enough savings for the airline.

The breakdown in talks makes strike action all but inevitable. Unite has until Monday to announce the dates of its strike. The union has already ruled out a strike over Easter after an earlier proposed strike over Christmas lost the strikers significant public support.

However strikes could begin by as early as next Thursday. British Airways has said it has trained 1,000 volunteers to stand in for cabin crew during the strikes and has another 4,000 in the pipeline.

Unite said yesterday, "Talks with British Airways concluded today without agreement being reached. Management's offer went nowhere near addressing our members' concerns over crew numbers and service levels. Today's talks were further impeded by gratuitously provocative statements by senior BA managers not involved in the negotiations, once more calling into question the company's interest in reaching an agreement.

"Unite representatives will be meeting tomorrow to discuss the consequences of this breakdown. Should BA wish to make an improved offer, they have time to do so."

BA said, "Our package for crew, which includes minor changes to on-board crew numbers, saves £62.5m a year and involves no reduction in earnings for existing crew," a spokesman said.

"Unite's proposals would fall significantly short of this level of savings and would require pay cuts for crew of between £1,000 and £2,700 a year. These pay cuts would be particularly unfair for crew at Gatwick, where no changes to on-board crew numbers have taken place.

"We remain available for talks."

By 10:46 shares in BA were down 0.52 per cent to 230.20 pence per share.