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800 BA workers set to work unpaid | 800 BA workers set to work unpaid |
(11 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 employees are taking unpaid leave, while 1,400 people have volunteered to work part-time. | Another 4,000 employees are taking unpaid leave, while 1,400 people have volunteered to work part-time. |
The airline had put the proposal to 40,000 staff. BA chief Willie Walsh has already agreed to work unpaid in July, forgoing his month's salary of £61,000. | |
Unions said asking staff to work for nothing was "unrealistic". | Unions said asking staff to work for nothing was "unrealistic". |
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. |
Many firms across different industries have been reducing their workforces and cutting workers' hours in a bid to save costs during the economic downturn. | 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. | "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. |
'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. |
But the union Unite said that while it supported the current BA scheme which encourages part-time working, unpaid leave, and career breaks, it did not support this proposal. | But the union Unite said that while it supported the current BA scheme which encourages part-time working, unpaid leave, and career breaks, it did not support this proposal. |
"The proposal for employees to 'work for nothing' is unrealistic," said Unite national officer Brian Boyd. | "The proposal for employees to 'work for nothing' is unrealistic," said Unite national officer Brian Boyd. |
"The fact that less than 2% of BA's workforce chose to take up this option demonstrates that there is no real support for this." | "The fact that less than 2% of BA's workforce chose to take up this option demonstrates that there is no real support for this." |
Starting in July, the 800 workers have the chance to stagger the days worked unpaid over a period of up to six months, with the pay deduction spread over three or six months. | Starting in July, the 800 workers have the chance to stagger the days worked unpaid over a period of up to six months, with the pay deduction spread over three or six months. |
Those volunteering to work part-time can do so for a period of between one month and one year, before another review is expected later in 2009. | Those volunteering to work part-time can do so for a period of between one month and one year, before another review is expected later in 2009. |
Similarly those on unpaid leave can take the time off for up to a year. | Similarly those on unpaid leave can take the time off for up to a year. |