British Airways is asking thousands of staff to work for nothing, for up to one month, to help the airline survive. The appeal, sent by e-mail to more than 30,000 workers in the UK, asks them to volunteer for between one week and one month's unpaid leave, or unpaid work. BA's chief executive Willie Walsh has already agreed to work unpaid in July, forgoing his month's salary of £61,000.
Last month, BA posted a record annual loss of £401m, partly due to higher fuel bills and other costs.
BA has said that hundreds of staff have responded positively to the request. But some employees and unions have condemned the plan, saying improvements in the management of the airline were a bigger priority. Indeed cabin crew and baggage handlers contacted by the BBC rejected the plan out of hand.
"It's a big no. A very big no. Everyone is up in arms. We're not taking it. I'd love to take a month's unpaid leave but I can't afford to do that," said one baggage handler at Heathrow.
But Mr Walsh said BA's drive to save cash was part of a "fight for survival". I am looking for every single part of the company to take part in some way in this cash-effective way of helping the company's survival plan," he said. "It really counts," he added.
BA has been in urgent talks during the past few weeks with trade unions at the company over other ways to save money. Details of a large pay and productivity deal are expected to be announced on Wednesday.
A company spokesman said it did not have an exact target for the expected savings from its appeal. "As much as possible, but we don't have a figure," he said.
The idea was first launched last month when the airline asked staff to volunteer for a month's unpaid leave, or to work for free for that time. That attracted more than 1,000 applicants. But the company's more recent version of its scheme, launched last week by e-mail and in an article in the internal staff newspaper BA News, is more flexible. It asks staff to volunteer by the end of this month for between one week and one month of unpaid leave or unpaid work. The lost salary will be spread over between three and six months.
BA said other airlines, such as Cathay Pacific, had launched similar schemes and a majority of their workforces had signed up for them. Many employers have imposed pay cuts or short-time working since the recession struck the UK last year.
"In certain cases such as Honda, they shut down for several weeks," said Alistair Hatchett of the research organisation Incomes Data Services. "Where it is obvious the economic circumstances are tough, people are willing to talk. Where employers try it on opportunistically, then there is a challenge," he added.
"While some options may seem unattractive, particularly where they involve reduced income, many employees will conclude that the alternative of losing their job looks bleaker," said Mike Emmott of the Chartered Institute of Personnel and Development (CIPD).
Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/business/8102862.stm
melissa
Mr Walsh earns over £700,000/year (over 1 million USD) and all he gave up is one month. If he wants to prove his point to his workers he should have forfeited his salary for the remainder of the year. Put you r money were your mouth is Mr. Walsh.
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"I will marshal all the forces of darkness to hound you to an assisted suicide." - In the Loop
I think it is great- I took a large paycut at work willingly in order not to layoff an employee.
2Taking one week unpaid is better than being out of work for good- if people banded together and did not rely on the government for the hand out we would be in a better place overall.
I agree that it is better than losing your job, but for some even one week without pay is too much. I also think that all the company heads should take a significant pay cut and forgo bonuses if that is part of their salary, before they ask hourly workers who make significantly less to take a hit.
3And I also like how they have offered to spread the lost salary over a few months' period so that it doesn't hit the employee all at once.
My hubby is dealing with this right now where he works - he and the other directors are trying to think up anything they can do to not have to lay people off.
4I think it works if the people who are doing it are not being significantly affected. I mean if you are maing 60,000 a month (pounds or dollars) - I am going to have to say that you probably have a good stash saved up that it won't hit you as hard as the person making 60,000 a year. I do like that it provides employees an opportunity to volunteer rather than force people to take unpaid leave like so many other companies have been doing here. If forced to do that versus losing a job - I would take it- but it just feels wrong when you are forced to do it.
5They actually had an article referencing this concept in BusinessWeek.
Basically I think this is a great opportunity for C level managers to build company (and personal) loyalty amongst their employees if they (the C level manager) take the brunt of the pay cut, the article talked about a president that worked free for the year. It's the best leadership decision and I think employees will remember that and ultimately the company will be stronger as a unit.
6"A company spokesman said it did not have an exact target for the expected savings from its appeal. "As much as possible, but we don't have a figure," he said" What? how can this be? How can they ask people to work for nothing and not know exactly how much they would save, or need to save for that matter. The CEO giving up one months salary... Big Deal. It was under his management that they had the huge annual loss.
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8Lazy, I think they can't say how much they will save, because this is voluntary, so they have no idea how many employees would participate. At least that was my thought when I read it. I would think that they would be willing to provide some projections, maybe saying if they could get 25% of the workforce to agree to this, it would save them X amount or something.
9I hope they survive-- great airline, one of my absolute personal favorites.
Hope they carefully analyze why they are in such dire financial straits & make some major corrections asap.
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