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IAG: BA restructuring may cost 12,000 jobs

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IAG: BA restructuring may cost 12,000 jobs

Old 28th Apr 2020, 17:38
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IAG: BA restructuring may cost 12,000 jobs

Reuters (28th April 2020) is reporting that IAG is in talks with BA unions about widespread redundancies.
* RECOVERY TO LEVEL OF PASSENGER DEMAND IN 2019 IS EXPECTED TO TAKE SEVERAL YEARS, NECESSITATING GROUP-WIDE RESTRUCTURING MEASURES* IAG IS NOT CURRENTLY PROVIDING PROFIT GUIDANCE FOR 2020* GROUP EXPECTS ITS OPERATING LOSS IN Q2 TO BE SIGNIFICANTLY WORSE THAN IN Q1

* LIKELY THAT RESTRUCTURING AND REDUNDANCY PROGRAMME WILL AFFECT MOST OF BRITISH AIRWAYS’ EMPLOYEES AND MAY RESULT IN REDUNDANCY OF UP TO 12,000
https://www.reuters.com/article/brie...-idUSFWN2CG13O

Best of luck to all.
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Old 28th Apr 2020, 17:56
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Not entirely unexpected. We shall see what sort of (if any) kind of package is offered.
Good luck everyone.
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Old 28th Apr 2020, 18:11
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From the pilots point of view, it’s pretty expensive to make pilots redundant, BA has what 45,000 employees?
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Old 28th Apr 2020, 18:20
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...and 4,500 of those are pilots.

https://mediacentre.britishairways.c...actsheets-3/33

Good Luck to all those affected by this.

Last edited by Auxtank; 28th Apr 2020 at 18:51.
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Old 28th Apr 2020, 18:25
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Originally Posted by whatdoesthisbuttondo View Post
From the pilots point of view, it’s pretty expensive to make pilots redundant, BA has what 45,000 employees?
It could be, although if BA paid the statutory minimum redundancy pay (and I accept that is a big 'IF') then it would actually be quite inexpensive compared to pilot's salary. From gov.uk website:

"Employees get:

1.5 weeks’ pay for each full year of employment after their 41st birthday
a week’s pay for each full year of employment after their 22nd birthday
half a week’s pay for each full year of employment up to their 22nd birthday
Length of service is capped at 20 years and weekly pay is capped at £538. The maximum amount of statutory redundancy pay is £16,140."
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Old 28th Apr 2020, 18:39
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Originally Posted by Panel3 View Post
There's just over 4500 of us. Possibly 800 redundancies indicated earlier. If the financial crisis is anything to go by VR will be offered first. In the 2008 case we had more volunteering than needed. After that, this time, who knows.
Of course, the BA guys and girls joining those from Flybe and Thomas Cook ..... unprecedented
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Old 28th Apr 2020, 18:48
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Originally Posted by whatdoesthisbuttondo View Post
From the pilots point of view, it’s pretty expensive to make pilots redundant, BA has what 45,000 employees?
statutory redundancy pay is now capped at £16,140

https://www.gov.uk/redundancy-your-r...redundancy-pay
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Old 28th Apr 2020, 18:50
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Bad news but not unexpected.

I do fear that many of my friends around the globe are going to end up unemployed by the end of this year.
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Old 28th Apr 2020, 18:50
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Originally Posted by Panel3 View Post
There's just over 4500 of us. Possibly 800 redundancies indicated earlier. If the financial crisis is anything to go by VR will be offered first. In the 2008 case we had more volunteering than needed. After that, this time, who knows.
Panel3 - Sorry I got my numbers wrong - I was basing it on BA Factsheet - so they appear to not know either - or just don't bother updating info very often. Have edited my post. Yes, very different circumstances to the banking crisis in which we find ourselves. Best wishes to you and all. What a bugger this all is.
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Old 28th Apr 2020, 19:01
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'Restructuring' means contracts and Ts and Cs out of the window, as well as Redundencies/Severance.

My thoughts are with all affected.

Last edited by stormin norman; 28th Apr 2020 at 19:19.
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Old 28th Apr 2020, 19:02
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Originally Posted by Good Business Sense View Post
Of course, the BA guys and girls joining those from Flybe and Thomas Cook ..... unprecedented
How many (approximately) pilots did Flybe and Thomas Cook employ?
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Old 28th Apr 2020, 19:05
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Originally Posted by peacheyglobes View Post
It could be, although if BA paid the statutory minimum redundancy pay (and I accept that is a big 'IF') then it would actually be quite inexpensive compared to pilot's salary. From gov.uk website:

"Employees get:

1.5 weeks’ pay for each full year of employment after their 41st birthday
a week’s pay for each full year of employment after their 22nd birthday
half a week’s pay for each full year of employment up to their 22nd birthday
Length of service is capped at 20 years and weekly pay is capped at £538. The maximum amount of statutory redundancy pay is £16,140."
Statutory yes, but they can offer any package they want...

My company offered it with an uncapped weekly pay for instance. Unions will negotiate .
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Old 28th Apr 2020, 19:09
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Originally Posted by C195 View Post
How many (approximately) pilots did Flybe and Thomas Cook employ?
tcx uk had about 630. About half those had new positions by January. Disregarding furlough, quite a few have been let go again.
my sympathy and empathy to all BA staff.
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Old 28th Apr 2020, 19:11
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So the nightmare rolls on.

Good luck to the Nigels and Nigellas
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Old 28th Apr 2020, 19:24
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Originally Posted by helicrazi View Post
Statutory yes, but they can offer any package they want...

My company offered it with an uncapped weekly pay for instance. Unions will negotiate .
Yes as I said in my post it is unlikely BA would pay the statutory minimum. As for the unions negotiating I can't see how they will have much power now.
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Old 28th Apr 2020, 19:39
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What about Lingus and Iberia.
And the Italian Government bails out Alitalia and Air France get a big wad of Government cash.
Just goes to show where employee's are on BA's ladder.
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Old 28th Apr 2020, 19:54
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Originally Posted by GKOC41 View Post
What about Lingus and Iberia.
And the Italian Government bails out Alitalia and Air France get a big wad of Government cash.
Just goes to show where employee's are on BA's ladder.
You mean the Goverments ladder?
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Old 28th Apr 2020, 20:01
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Originally Posted by GKOC41 View Post
What about Lingus and Iberia.
And the Italian Government bails out Alitalia and Air France get a big wad of Government cash.
Just goes to show where employee's are on BA's ladder.
BA ain't the government, which is kind of the point I think ?
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Old 28th Apr 2020, 20:07
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Who would have thought a company making 2 billion profit would turn around and axe 1/4 of its workforce when the going gets rough? Apart from the staff working for BA, of course, who know what a ruthless, heartless bunch they are.
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Old 28th Apr 2020, 20:08
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Surely it doesn't matter how much cash is pumped in, demand for travel will be alot less so a reduction in work force is inevitable in any company. Cash just keeps the lights on for longer at the moment.
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