June 25, 2020 / 5:43 PM / 10 days ago

British Airways makes proposal to cabin crew on pay cuts

FILE PHOTO: Tail fins of British Airways planes are seen parked at Heathrow airport as the spread of the coronavirus disease (COVID-19) continues, London, Britain, March 31, 2020. REUTERS/Toby Melville/File Photo

LONDON (Reuters) - British Airways, owned by IAG (ICAG.L), has made a proposal to its cabin crew that would mean those taking on a corresponding role under its restructuring proposals would be paid at least 80% of their current basic rate, an internal letter said.

British Airways has come under fire from British lawmakers who have accused the airline of trying to “fire and rehire” its employees on worse pay and conditions, with trade union Unite saying that some cabin crew are facing pay cuts of 70%.

The airline said in April it needed to cut 12,000 jobs in order to survive the travel slump. It said employees who stayed on needed to accept “market-competitive pay rates” as it merges three previous cabin crew teams into one.

Many airlines are making job cuts but politicians have singled out British Airways for its tactics, saying it is using the coronavirus crisis as an excuse to give staff worse pay.

British Airways says that it is burning through 20 million pounds a day and will not survive if it does not become more competitive.

Reporting by Sarah Young, Editing by Paul Sandle

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