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Sir Richard Branson has angered Virgin Atlantic staff who are threatening to strike by telling them they should “consider working elsewhere”.
The entrepreneur, estimated to be worth £3.1 billion, told 4,800 cabin crew in a letter that he would not meet their pay demands. He said: “For some of you, more pay than Virgin Atlantic can afford may be critical to your life-style and if that is the case you should consider working elsewhere.”
Union members have voted to stage 48-hour strikes on January 9-10 and January 16-17.
Sir Richard said he had drawn a line in the sand in the dispute with staff belonging to the Unite union, which is embroiled in separate negotiations with BAA, the airports operator.
“To go further would result in unacceptable risks and would set a dangerous precedent to the company,” he wrote. “It would be irresponsible of our management and they, rightly, are not going to take that risk.”
A spokesman for Unite said the letter was “insulting” and would worsen relations with employees.
The carrier has offered 8.3 per cent on basic pay over two years, with a 4.8 per cent increase in the first year. Sir Richard argued that staff using British Airways wages as a benchmark were being unrealistic. “It’s like comparing chalk with cheese,” he wrote, adding that Virgin Atlantic did not have the benefit of a history of state support and priority landing slots.
Paul Charles, Virgin Atlantic’s director of communications, said: “We have been inundated with calls from staff saying ‘we want to come into work to keep the airline flying’.”
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My friends's a cabin crew at Virgin Atlantic and she loves it. They give all their cabin crew healthcare benefits, whereas BA doesn't (only to its management!). Virgin offers discounts and free flights to friends and family of crew members, whereas BA offers a miserly one flight. I'm told that this offer also puts new entrants to Virgin much better off starting-salary wise than BA. So, I think Richard Branson is right. Go elsewhere if you don't like it - after all, Virgin does get 40,000 applications a year to be cabin crew. I think crew are realising that if they strike, they lose any chance of a pay increase (as the 8.3% offer has now been withdrawn) and they lose a week's pay if they strike for the 4 days. I've got my January credit card bill coming next week - they must have as well!
Brad Davis, Brighton, UK
Having travelled on Virgin both economy and the premium economy (to see if the service and attitude of the staff improved - it didnt!) I would say that if this continues Mr Branson wont have an airline to worry about. On our most recent flight there were nothing but complaints from all passengers, the staff could have cared less...but then if you pay peanuts you get monkies!
Mrs M, London,
I would never consider working for Virgin Atlantic, Everybody in the aviation world knows, that Virgin cabin crew is one of the lowest paid in the UK.
I don't agree with RB's attitude! I stand with the crew, they deserve to be treated better, after all, they are the ones that make the airline.
I will be changing to another carrier now that I have seen RB's attitude. Come on, who can survive on £10,000 PA these days
Craig, London, UK
"What Branson has said to his staff about going elsewhere is a contemptious attitude"
No, he is just stating the obvious. Workers are offering their time and skills in the job market, and have the right to switch to a different employer if they can get a better deal. If they are not happy in their current job then this is their "economically correct" remedy. If they cannot get a better deal elsewhere, that is proof they shouldn't get more where they are, and it may even be a sign they are currently overpaid.
In a fair world, employers would have an equivalent right to get rid of any employee at the drop of a hat and replace them with someone else who offers a better deal, but of course workers have more votes than employers, so "employment rights" legislation exists that makes it unfairly difficult for employers to do this.
Chris, London,
Sack them all.Unions have no place in this county anymore...they are one of the reasons that the UK is now so uncomptitive in the world today.The problem is that the majority of the country want maximum money and minimum work.VIRGIN STAFF included.Branson hould sack the lot of them and recruit people who want to work...Eastern European staff would be a good idea-they have a decent work ethic and will cost less.Its not exactly a highly skilled or difficult job....
ADAM, LONDON, UK
It looks like RB has been reading the Ragged Trousered Philanthropists and in particular the part where Owen does the bread trick .
Well done for your analysis of the capitalist system RB!!!
Austin Tassletine, South West, UK
Quite right too. The staff have been offered a good deal and they should go if they don't like it.
Hopefully this will mean some of the older staff will leave. Fresh blood is always good for a business.
Mark Thompson, Hampshire, UK
Question...
Do you want to board a flight on holiday in this day & age, when a percentage of the crew aren't there due to high sickness levels & terrible moral, whilst the crew who ARE on duty, have just arrived straight from their second job, due 2 not earning enough money to live & work for the airline your flying on, entrusting YOUR safety & security?
Workers for Virgin had it good; great perks and staff travel incentives within a small, friendly and progressive company. HOWEVER the industry and the world has changed. Virgin Atlantic is now like any other airline, with a huge worldwide network and staffing levels to support this.
With the "perks" massively diluted, Virgin DAILY operate with crew members missing ,(minimum crew levels only), and DAILY crew have to work in positions of onboard management without necessary training, whilst watching other areas of the group FRITTER MILLIONS on such random plans as Virgin Galactic!!
Give them the pay increase they deserve.
N Smith, Surrey, UK
Good luck to the crew at Virgin who do a fantasctic job for very little reward. What use are free flights as a perk when you earn so little that you can't afford to go away!
I have several friends who work there and am shocked that most earn 10,000 a year!
bob, tonbridge, kent
I am in total agreement with RB, I enjoy flying with Virgin the staff are always pleasant and cannot do enough to make your flight comfortable etc.Although sometimes they have to put up with ignorant passengers (probably like Pete of Reading). i applaud RB and Virgin Atlantic for having got to where he is without the benefit of handouts from the government ie the tax payer. Also the 8.3 percent over 2 years is far more than I have had in the last 2 years.
Name withheld, Southampton, uk
Well said RB its time someone told the truth to both their employee's and the their Union.
Unions have been getting more and more militant of late and now believe they can get what they want by threats of strike action just as they did in the 70's and 80's.
To Virgin staff speaking from experience of the above period I can tell you strike action wont make you richer it will make you poorer and if you cause severe financial damage to your Company unemploymemt will follow. The full time Union Offical's shouting you on from the sideline are polical annimals who only use you for thier own ambitions within the Union or Labour Party they wont lose one penny of their pay. Take my advice from experience if you dont like the terms and conditions at Virgin find another employer you will end up far richer than listening to your Union.
Dave, Mold, Flintshire
Lets face it who wants a 50+ year old hostey?- it's his way of culling. I'll choose an airline who employs pretty 20 yr olds anyday to the U.S. airlines- it's almost embarassing on an AA flight the attendants are old enough to be my mother and really it's not a pleasant sight- and Branson knows it. But in this day and age he can't sack 'um for being old so he has to keep the wages low so as to just attract the young singles. Come to think of it I hope he takes over Northern Rock.
pete, reading, berks
Hats off to Sir Richard Branson. There is a growing culture in this new young generation of doing very little but demanding a lot more than what they deserve. As RB correctly points out no one would risk the integrity of the company (which has grown over the years, thanks to the hardwork of RB and others) just for the sake of some greedy employees with arguments which would make sense only to them. Unemployment will be at its highest level this year and I'm sure RB can find harder working and more committed individuals.
munash patel, london,
What Branson has said to his staff about going elsewhere is a contemptious attitude that I hope his staff will duly return by saying, that we do not wish to go elsewhwere, when we can make our situation more cosy here just by showing some militance, and there;s not a damn thing you can do about it except cough up.
n.metcalf, lincoln, uk
When you have a CEO be transparent, direct and display both logic and reason, in that person's answers to any union or staff, you have to acknowledge this quality as rare and refreshing.
Like or loath Sir Richard Branson, he is speaking at every employee and business owner's level - be it staff of 10 or 10,000.
You cannot make promises that are unsustainable or undeliverable in today's present economic climate. Giants fall in good times as easily as businesses employing 10 staff.
People are too focused on lifestyle. If you want to maintain it, maybe you as individuals need to change, and not the company.
This is an opportune time to re-evaluate your priorities and requests upon what could already be considered benchmark workplace standards by other regions, organisations and companies.
As employees, if you have not noticed this behaviour being the motivator of your Union in negotiating claims moving forward, you should go back and kick your representatives in the arse!
Concerned entrepreneurial global employee., Melbourne, Australia
Congratulations to Sir Branson.
You have Guts and the world need more CEOs like you. If Unite members want BA wages they should work for BA and let us all wait on the sidlines and watch the BA Ship go down with them. Money does not grow on trees and if VA gives out all its income to Payroll what will they have to "Grow" the airline ? Wake up guys and smell the stench of all the dying airlines in Europe and North America. The Primary cause of Death and Decay has always been "Higher Wages with no corresponding increase in Productivity" I have witnessed this for the past 32 years I have been in Aviation. And when recession comes ( some say it is round the corner) the Aviation sector will be the first to go down the tube and the last to recover. Hang to your Jobs while you have them.
Joseph Rodrigues, Toronto, Canada