Sun, Aug 22, 2004
Inks deal with union for three year contract after labor
accepts strict absence policy
British Airways and its labor unions averted a 24 hour strike
next weekend by signing a new three-year labor agreement that,
among other issues, implements a new strict absence policy that
will benefit the airline. The news of the agreement lifts the
shadow of uncertainty over British holiday travel.
The contract will also increase pay, giving employees an 8.5
percent raise over three years, backdated to 2003, and an $1800
bonus payable between now and September 2006.
"The threat of industrial action against British Airways was
lifted today following agreement with its unions on a three-year
pay deal," a British Airways spokeswoman told Reuters.
Labor unions
immediately cancelled strike plans, which lifted the specter of
another summer of travel disruptions. Last year wildcat strikes in
the aviation industry disrupted the travel plans of more than
100,000 travellers in Britain. "We are pleased that holiday
makers can now relax and pack for their summer break," Transport
& General Workers Union national secretary Brendan Gold
said.
Mike Street, MBA's director of customer service and operations,
said the agreement was reached after the labor unions accepted a
stricter absence policy that will take effect immediately. The new
policy is expected to cut the average number of employee absence
days from 17 per employee per year to 10 days.
"We can afford this three-year deal because of the new absence
policy, which we estimate will save British Airways 30 million
pounds a year," Street said in a statement. Last year's strikes
cost the airline some 40 million pounds.
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