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British Airways and Unite commit to new talks

BA and Unite return to negotiating table

BA and Unite return to negotiating table

British Airways is quietly optimistic that a renewed wave of industrial action by the Unite union can be averted before its members head to the ballot boxes.

The flag carrier was brought to its knees in December after cabin crew voted overwhelmingly in favour of staging a devastating 12-day strike during the peak Christmas period.

But an eleventh-hour ruling by the High Court barred Unite from staging the walkout, and analysts speculate that British Airways is now closer than ever to reaching a deal.

The union had been angered by management’s efforts to curtail generous working practices as well as implement a two-year pay freeze and impose some redundancies.

British Airways insists the measures are crucial to the airline’s survival, but until now neither side has shown any appetite for reconciliation with a second ballot still looming.

Commenting on the agreement to meet for the first time since Christmas, transport analyst Douglas McNeill told The Financial Times: “It’s probably the most encouraging sign for some time.”

His optimism was reservedly echoed by Unite chiefs Derek Simpson and Tony Woodley, who said: “We will be approaching those talks in a constructive spirit, seeking to find a settlement that meets the real concerns of BA’s skilled, loyal and professional cabin crew, while keeping the airline flying.”

BA added: “We have always said we would make ourselves available for talks with Unite at any time without preconditions. We are pleased that this new round of talks will now proceed.”

The airline lost £401 million during in the last financial year and has seen a steady decline in demand for its lucrative premium services. Had the strike over Christmas and New Year gone ahead as planned, analysts believe the flag carrier could have lost anything up to £30 million per day.

For now Unite is still promising a fresh ballot, but its bungled handling of the first vote as well as its disastrous attempts to justify a strike severely damaged its reputation.

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This entry was posted on Thursday, January 7th, 2010 at 6:15 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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