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800 BA workers set to work unpaid | 800 BA workers set to work unpaid |
(10 minutes later) | |
British Airways has said 800 workers have volunteered to work for nothing for up to a month, following the airline's request to cut costs. | British Airways has said 800 workers have volunteered to work for nothing for up to a month, following the airline's request to cut costs. |
Another 4,000 workers are taking unpaid leave, while 1,400 people have volunteered to work part-time. | Another 4,000 workers are taking unpaid leave, while 1,400 people have volunteered to work part-time. |
The airline had appealed to 40,000 workers to work for nothing for up to one month, to help the firm cut costs. | |
BA's chief executive Willie Walsh has already agreed to work unpaid in July, forgoing his month's salary of £61,000. | BA's chief executive Willie Walsh has already agreed to work unpaid in July, forgoing his month's salary of £61,000. |
The airline, which is struggling in the downturn, says the move will save £10m. | The airline, which is struggling in the downturn, says the move will save £10m. |
'Fantastic' response | 'Fantastic' response |
In May, BA reported a record annual loss of £401m, stemming partly from higher fuel bills and other costs. | In May, BA reported a record annual loss of £401m, stemming partly from higher fuel bills and other costs. |
This response clearly shows the significant difference individuals can make BA chief executive Willie Walsh Check BA's shares here | This response clearly shows the significant difference individuals can make BA chief executive Willie Walsh Check BA's shares here |
Following the response from workers, Mr Walsh said: "This is a fantastic first response. I want to thank everyone who has volunteered to help us pull through this difficult period." | Following the response from workers, Mr Walsh said: "This is a fantastic first response. I want to thank everyone who has volunteered to help us pull through this difficult period." |
He added: "This response clearly shows the significant difference individuals can make." | He added: "This response clearly shows the significant difference individuals can make." |
Mr Walsh said staff could volunteer for the programme later in the year too. | Mr Walsh said staff could volunteer for the programme later in the year too. |
The 800 workers have the choice to work the unpaid time when they want and can stagger days worked unpaid. | The 800 workers have the choice to work the unpaid time when they want and can stagger days worked unpaid. |
Staff were offered the chance to volunteer for between one and four weeks unpaid leave or unpaid work, with the pay deduction spread over three or six months. | Staff were offered the chance to volunteer for between one and four weeks unpaid leave or unpaid work, with the pay deduction spread over three or six months. |
The options also included switches to part-time working or longer periods of unpaid leave. Staff will have further opportunities to take part in the programme later in the year. | The options also included switches to part-time working or longer periods of unpaid leave. Staff will have further opportunities to take part in the programme later in the year. |
Many firms across different industries have been reducing their workforces and cutting workers' hours in a bid to save costs during the economic downturn. | |
"What makes BA stand out is that it is asking workers to work for nothing for a period, rather than simply reducing pay through fewer hours," said Jane Amphlett, an employment lawyer with Finers Stephens Innocent. |