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British Airways (BA) has been forced to call in Acas, the conciliation service, after failing to reach an agreement with unions over job losses and pay cuts as it seeks to avoid a damaging summer of strikes.
The airline announced today that it had asked the conciliation service to host any future meetings with its unions after last night’s deadline to reach a deal passed without agreement.
Fresh talks with unions had been expected today at a 10am meeting at a Heathrow hotel. However, unions claimed that BA management failed to turn up.
In a statement, BA said: "It has not proved possible to conclude an agreement with the trade unions on our pay and productivity discussions by the deadline of June 30.
"We have therefore asked the conciliation service, Acas, to faciliate any future meetings we may have."
A spokesman for the GMB, the union, said the talks did not make strikes either more or less likely.
BA, which last year slumped to a £401 million loss, has proposed a series of cost-cutting measures including a pay freeze and reduction in allowances and benefits as it battles the severe downturn in the airline industry. It is also seeking up to 2,000 voluntary job losses among cabin crew.
Unions have agreed to make short-term sacrifices to help the company but they do not want any changes to be permanent.
Failure to reach a deal could lead to strikes by thousands of workers during the busy summer months.
BA and its unions have been trading accusations over recent days, with Unite, the union that represents 27,000 BA employees, accusing Willie Walsh, the airline's chief executive, of damaging BA's reputation by stating that it was "fighting for its survival".
In a letter to Mr Walsh, Unite said: "Your comments in our view have contributed to a decline in forward bookings...and have allowed competitors to exploit our position."
Staff anger has been compounded by Mr Walsh's pay package. Though he is to work for free in July, he will receive a 6 per cent increase in pay this year, to £743,000. He is also eligible for a bonus of up to £1.1 million that will be paid in shares.
Daniel Lee, a senior first officer, recently questioned Mr Walsh on a company web page. “I and many of my colleagues would be happier making sacrifices if we were sure the leadership team and the most senior managers were not going to hose themselves down with cash and cheap share options in the next few years,” he said.
More than 2,500 jobs have already gone at BA in the past year. BA's pilots have also agreed to 100 voluntary redundancies.
In May the airline revealed that it slumped to a £401 million loss last year - the worst loss since 1982. BA made a profit of £992 million in 2007-08.
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