Where next for British Airways? Andy Cook, CEO, Marshall-James, employee relations advisory firm examines the options

Online, March 25, 2010 (Newswire.com) - London, 25th March 2010 - As the second wave of Industrial Action planned by the Unite members of BA Cabin Crew is due to start on Saturday 27th March for four days, a resolution still seems a long way off.

Andy Cook, Chief Executive of Marshall-James, the specialist employee relations firm comments: "At some point, this dispute will have to be solved. However, it is looking difficult to see where the common ground is going to come from, particularly given the personalisation by the Union against BA Management. Both sides are claiming a victory in terms of the numbers who have stayed away or turned up for work and the number or services that have run".

"We will never really know the true picture but one thing is for sure, at the heart of this are passengers who cannot take or complete their journeys and a large group of airport and BA employees who, whilst not on strike, will be directly affected by what is happening. BA claim they have no choice but to reduce costs and those reductions can only come from its payroll. The acute need to cut costs has now become critical for the airline's long term viability".

"The pension fund deficit, volatile fuel costs, a reduction in premium passengers and competitor's ability to operate more cost effectively all add to a bleak financial picture. If you put into that mix a group of employees who are paid way in excess of equivalents on rival carriers and who are protected by restrictive practices making flexibility even more expensive, then it is easy to understand the dilemma".

"An important factor in all of this is that BA cannot afford to take their foot of the gas. Previous management regimes have not tackled this issue as times had been good and the money was coming in, on top of which they realised the extent of the union's muscle, which is what we are now seeing.

"Therefore, it was easier not to confront the cabin crew in those good times. That is not the case anymore and the current management has to deal with the crisis and if they do not get what they need from this dispute, then they know they will be back here in 12, 24 or 36 months time. I always advise clients that the best time to make change is when things are going well".

"The imminent budget and cap on public spending, particularly in the area of public sector pay, will cause further industrial unrest. The PCS union is striking over changes to civil servants redundancy payments which are generous in comparison to a majority of private sector payments. The government wants to reduce payments to civil servants on redundancy so it is not so expensive to make headcount reductions. For most of us, the proposed reduced payments will still seem generous, but the union and its members want to protect the current levels. Network Rail is facing similar difficulties".

Ends

Andy Cook - Biography
Andy Cook has over 10 years experience in senior human resources positions in heavily unionised work places, including the airline and transport industries. He founded and runs Marshall-James, a specialist Employee Relations Advisory firm that works with many large employers from both the public and private sectors. His career has included roles as HR Director at the British Library, Head of Human Resources and Employee Relations with Transport for London and as HR Director, UK and Ireland, with Gate Gourmet. Andy and his team have grown Marshall-James into one of the foremost experts in Industrial and Employee Relations. He continues to advise clients personally as well as speaking at conferences and writing regular articles for both the HR community and the wider business audience and is often called upon as an expert commentator on industrial disputes and HR issues in the press and media.

Notes to Editors
Marshall-James is a specialist Employee Relations Advisory firm based in the UK that specialises in all aspects working with Employers who face issues and challenges with Trade Union Relations and Collective Employee Issues. Marshall-James works with household name employers both inside and outside the UK.