BRITISH AIRWAYS and its largest union, Unite, have reached a deal to end an 18-month dispute that led to 22 days of strikes, £150 million worth of losses for the airline and disruption for hundreds of thousands of its passengers.
Under the agreement, approved yesterday by union shop stewards, but which still requires a postal ballot of 10,000 cabin crew, British Airways will offer pay increases this year and next, along with restoring free-travel concessions to staff.
The dispute began in October 2009 when British Airways’ chief executive Willie Walsh, who formerly led Aer Lingus, cut 1,900 cabin-crew jobs and imposed a two-year pay freeze, before suspending or dismissing dozens of staff.
Tensions escalated when Mr Walsh, who is now chief executive of the British Airways/Iberia merged International Airlines Group, removed travel concessions from 7,000 Unite members, vowing never to give them back.
Talks, which have been under way for months, intensified over the last four weeks between Unite’s newly-appointed general secretary, Len McCluskey, and Mr Walsh’s replacement as BA’s chief executive, Keith Williams.
Reflecting, perhaps, the bad blood between Unite and Mr Walsh, Mr McCluskey paid effusive tribute to Mr Williams yesterday.
“I have found him to be a decent man. I have found him to be a genuine and honest man,” Mr McCluskey said.
Promising to repair British Airways’ damaged reputation, Mr McCluskey said: “There is a change within the management psyche at British Airways driven by the chief executive. If we embrace this, we are confident that the future will look good.”
Talks between Unite and Mr Walsh were frequently fractious. Just a day after British Airways reported losses of more than £500 million last May, Mr Walsh had to be escorted from a building after Unite members stormed a meeting with union leaders.
Under the agreement, which should be ratified by Unite’s membership within the month, staff will get a 4 per cent rise this year, with 1.1 per cent of that depending on cost savings. In 2012, 3.5 per cent will be paid, including 0.5 per cent depending on savings.
None of the jobs lost when Mr Walsh, then facing mounting losses in the company, cut one member from each of BA’s long-distance flights, will be restored, though disciplinary cases against dozens of cabin crew will be put to binding arbitration.