Results expected on British Airways strike vote

[December 14, 2009]  LONDON (AP) -- Results were expected Monday of a vote by 14,000 British Airways cabin crew on a Christmas walkout that could disrupt holiday travel and make the money-losing airline's financial state even worse.

Britain's leading union, Unite, is due to announce the results of the vote at a meeting of workers Monday. A walkout would underline worker opposition to layoffs and changes in work practices.

The struggling carrier has announced sweeping changes as part of its bid to cut costs, including axing 1,700 jobs, freezing pay for current staff and offering lower wages for new employees. The airline has suffered along with the rest of the industry due to lower demand for travel during the global recession.

The prospect of a "yes" vote appears more likely after the failure of talks last week between British Airways PLC executives and leaders of Unite. That would mean that the union could order strikes beginning Dec. 21, which could make holiday travel plans uncertain for thousands of passengers.

Chief Executive Officer Willie Walsh said that the cabin crew had been misled by the union over the necessity and fairness of the airline's new pay and work proposals.

"Our cabin crew union refuses to acknowledge what is going on around it," the outspoken Walsh wrote in Monday's Daily Mail newspaper. "Like King Canute, it sits by the water's edge shouting at the waves of recession and competition to go back."

"This cannot work," he added. "And though the union may be bent on self-destruction, I will not allow British Airways to be pulled under."

The airline, which is struggling as the global downturn eats away at demand for air travel, has defended the cost-savings measures as necessary to move back to profitability. It posted a net loss of 208 million pounds ($346 million) for the six months ending in September, its first-ever loss in the period, as revenue fell by 13.7 percent.

BA also revealed on Monday that its pension deficit has blown out further to 3.7 billion pounds, from 2.1 billion pounds in 2006, and said it would consult with employees about a recovery plan.

The union has argued that the changes, introduced in mid-November, has stopped members from doing their jobs properly and were imposed in breach of contract.

Cabin crews agreed last month to fly with reduced staffing after failing to win a court injunction banning the changes last month until a High Court decision on the dispute is due on Feb. 1.

If the cabin crew do go on strike it will be the first since three days of action in 1997.

Shares in BA were trading at 201.6 pence on Monday, up just 0.2 percent.

[Associated Press; By JANE WARDELL]

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