British Airways enters crunch talks with unions in an attempt to prevent strike action this summer, but accusations are already flying, even before the two sides face each other.

Unite, the union that represents 27,000 BA employees, has accused 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, the union said: “Your comments in our view have contributed to a decline in forward bookings...and have allowed competitors to exploit our position.”

BA responded by repeating that it was facing the harshest trading environment in its history and that this required structural changes to its business. The airline has proposed a series of cost-cutting measures and has set a deadline of today to agree new terms with unions. It wants to impose a pay freeze and reduce allowances and benefits. It is also seeking up to 2,000 voluntary job losses among cabin crew.

Unions have said that they are willing to make short-term sacrifices to help the company but they do not want changes to be permanent.

Mr Walsh has faced further criticism from some BA staff over his remuneration package. He will receive a 6 per cent increase in pay to £743,000 this year, although he will work for free during July, taking his basic salary down to £674,000. 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.

Mr Walsh responded, pointing out that he was on a 12-month contract, with a large proportion of his pay linked to shareholder returns. “If you would like to place a similar proportion of your current total remuneration at risk, align your long-term reward to our total shareholder return and have a 12-month rolling contract, let me know and I will arrange it for you,” he said. “That way you can join me in front of the hose and wait for someone to turn it on.”

Yesterday, Mr Walsh rejected accusations that the airline had put pressure on its employees to copy his gesture of working for one month without pay. “I made it clear to people I wasn’t asking them to do what I have done,” he said at a conference at the London Business School. “What I was expecting people to do was stand back and ask themselves what they can do to help in a time of need, what they can do to make a difference.”

Former BA staff have also reacted angrily to changes made to their free travel allowance. Retired BA workers and their spouses had been eligible for one free flight a year. This benefit has been changed and is available only for an equivalent number of years served.

A relative of an elderly former BA employee said: “It does seem extremely unfair to punish a group of people that have provided loyal service to BA and have been given access to confirmed travel now to be taken away at a later stage in life when a confirmed seat becomes a necessity.”

A spokesman for the airline said: “We believe the former employee package remains extremely generous. Staff travel has always been a noncontractual benefit granted at the sole discretion of the company.”

BA work practices

British Airways faces significant hurdles if it wants to change work practices, as it found this year when it wanted to start a hot-towel service in premium economy.

Bassa, the union that represents cabin crew, said that negotiation was required.

It wanted the number of crew on a Boeing 747 increased from 15 to 16 — at a cost of tens of millions of pounds — in return for distributing the hot towels.

BA refused, claiming that hot towel service did not constitute a significant change in working practices.

The service has been introduced, but BA cabin crew told The Times that many staff still refuse to give out the hot towels because it is not a union-sanctioned activity.

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