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BA staff reject cost-cutting plan | BA staff reject cost-cutting plan |
(10 minutes later) | |
A mass meeting of more than 2,000 British Airways workers has rejected the airline's plans to reduce costs by cutting jobs and freezing pay. | A mass meeting of more than 2,000 British Airways workers has rejected the airline's plans to reduce costs by cutting jobs and freezing pay. |
Staff said they were not prepared to accept an "assault" on their pay, terms and conditions. | Staff said they were not prepared to accept an "assault" on their pay, terms and conditions. |
Conciliation service Acas will chair a meeting between BA and unions on Wednesday to try to reach an agreement. | Conciliation service Acas will chair a meeting between BA and unions on Wednesday to try to reach an agreement. |
BA has been striving to cut costs in the recession. In May, the airline reported a record annual loss of £401m. | BA has been striving to cut costs in the recession. In May, the airline reported a record annual loss of £401m. |
The airline had set a deadline of 30 June to reach a deal on about 3,500 job cuts, a pay freeze and other changes, but no agreement was made. | The airline had set a deadline of 30 June to reach a deal on about 3,500 job cuts, a pay freeze and other changes, but no agreement was made. |
At the meeting, workers rejected BA's proposals and instead backed a union plan, which officials said could save between £100m and £130m. | At the meeting, workers rejected BA's proposals and instead backed a union plan, which officials said could save between £100m and £130m. |
Cutting costs | Cutting costs |
The union Unite said it was prepared to consider a two-year freeze on pay. | The union Unite said it was prepared to consider a two-year freeze on pay. |
Unite claimed BA wanted to introduce a new "starter rate" of £11,000, but said this would lead to a two-tier workforce. | Unite claimed BA wanted to introduce a new "starter rate" of £11,000, but said this would lead to a two-tier workforce. |
Last month, BA said 800 workers had volunteered to work for nothing for up to a month. | Last month, BA said 800 workers had volunteered to work for nothing for up to a month. |
The airline had written to its 40,000 staff in the UK, asking for volunteers to work for nothing to help make savings. | The airline had written to its 40,000 staff in the UK, asking for volunteers to work for nothing to help make savings. |
BA chief Willie Walsh has already agreed to work unpaid in July, forgoing his month's salary of £61,000. | BA chief Willie Walsh has already agreed to work unpaid in July, forgoing his month's salary of £61,000. |
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