Union launches BA legal action over pay plan

By JANE WARDELL

posted: 26 DAYS 11 HOURS AGO

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LONDON -Britain's Unite union began legal action on Friday to block British Airways PLC's disputed plan to impose new work contracts on its cabin crew, sending the carrier's shares almost 5 percent lower as a strike threat also looms.

Unite applied for a High Court injunction to stop BA introducing new pay and conditions for its 14,000 cabin crew and prospective employees, which are due to be introduced on Nov. 16.

The court action is separate from a planned ballot of union members for possible strike action. The union said that vote will go ahead on Monday, leaving the threat of a Christmas walkout on the table.

The ongoing labor disputes have weighed heavily on the airline's share price and it dropped 4.7 percent to 180.6 pence on Friday.

The union and BA management have failed to reach agreement despite sporadic talks since the carrier announced it planned to cut a further 1,700 jobs, freeze pay for current staff and offer lower wages for new employees.

The plans are part of the airline's attempts to cut costs after the global economic downturn hit demand for flights. It has already slashed 2,500 positions between June 2008 and March 2009.

BA said it was aware of Unite's court filing but had not yet been served papers.

"British Airways is facing very difficult economic conditions and is heading for a second consecutive year of financial losses for the first time in our history," it said in a statement. "Everyone within the company knows we must reduce our costs to move back toward profitability."

The airline, which is due to report second quarter earnings next week, is expected to post a big loss this financial year, after losing 375 million pounds ($595 million) in the year ending March.

BA said its planned changes followed more than nine months of negotiations with Unite and that they did not change contractual terms and conditions for existing individual crew members, meaning they could be brought in without union consent.

The union disagreed, arguing that changes would require cabin crew to absorb extra responsibilities because of cuts to flight staffing rotas.

Unite is hopeful that a court hearing will take place next week and said it would review the strike ballot if it was successful in the High Court challenge.

2009-10-30 12:54:16