British Airways chief turns down bonus
British Airways chief executive Willie Walsh, who is embroiled in a bitter dispute with his cabin crew, has turned down a bonus worth £334,000 (€405,027), the second year in a row he has made such a gesture, it was announced today.
Mr Walsh was entitled to a bonus of deferred shares awarded to him by the board for the last financial year, but he decided not to take it after turning down an award last year estimated to be worth more than £500,000 (€606,328).
His salary has remained frozen at £735,000 (€891,050), the level it was set at in 2008, although he actually received £674,000 (€817,100) last year because he voluntarily gave up his pay for the month of July as the airline was making cost savings.
Nearly 7,000 other employees also took voluntary pay cuts.
BA said that under the remuneration arrangements set out in the annual report, no one at the airline would receive cash bonuses for the second successive year.
The figures were published in BA's annual report as cabin crew returned to normal working after the end of their latest wave of strikes.
Members of Unite have taken 22 days of strike action since March, costing the carrier more than £150m (€181.8m).
Fresh talks are expected to be held between the two sides, although Unite is preparing to hold a new ballot for industrial action, which could disrupt flights in the busy summer months.
In a letter to cabin crew today, Unite's joint leaders Tony Woodley and Derek Simpson said three "new items of dispute" had been raised in recent weeks - the removal of travel concessions from staff who went on strike, disciplinary action against union members and BA's "disregard" towards collective agreements.
The union leaders said a ballot for fresh industrial action will be held on the three points if the dispute is not resolved.
Unite is checking its membership details in preparation for a new ballot in a bid to avoid any fresh legal action by the airline, which has challenged previous voting arrangements.
Staff who will not be employed by BA after August 3 were told not to vote, as well as those off work through sickness, maternity or unpaid leave who did not expect to return before October 25.
The only other bonus recommended was to BA's finance director Keith Williams, who is taking the £167,000 (€202,431) he is entitled to, the annual report said.
Writing in the report, Mr Walsh said: "I regret that we found ourselves at loggerheads with very valued members of staff at a critical time.
"When we have had the chance to explain our proposals directly, many understand what our agenda is really about - to secure jobs in the airline and put the business on a footing where it can achieve the growth it needs to survive long-term.
"They understand that, without change, British Airways will just shrink and shrink and shrink.
"I genuinely believe it is unfair to say we looked for confrontation. We negotiated these changes over the course of a year and tried repeatedly to answer concerns raised by our staff.
"Our position is clear. We've done some excellent work with the unions over the years and we're happy to work with them. But we can't let them stand in the way of the progress that's needed to make our airline's future more secure."
Mr Walsh said he believed BA's market will recover, but only gradually, adding: "The important thing is that we are ready for it. We've genuinely changed the cost base of our business in a structural way.
"It's not perfect yet and there's more to do. I'm delighted we've been able to do that important work while maintaining a strong operational performance and delivering outstanding customer service."
BA chairman Martin Broughton wrote: "We have succeeded in introducing permanent cost reductions across the airline, including reductions in crew complements. Regrettably, these changes were met by unjustified strike action by Unite's cabin crew branch.
"Bassa misrepresented the company's position to its members, failed to represent the views of the majority of cabin crew and has been intent on a confrontation with the airline.
"The vast majority of our employees recognise the need for permanent change and have shown great commitment to British Airways during this difficult year."
Len McCluskey, Unite's assistant general secretary, said: "There would have been uproar if Mr Walsh had pocketed a bonus this year.
"His plans for BA have seen it become a byword for bullying, driving customers into the arms of competitors, poisoned working relations and is denying the airline a peaceful, stable future.
"This is not success, it is ruination of a great British company. There should be no bonus and no mega-pot of shares until BA sorts the cabin crew dispute."
Meanwhile Labour MP John McDonnell (Hayes and Harlington) was drawn first in the Private Members' Bill ballot today and will bring forward a Bill to tackle abuse of trade union ballots by employers.
"As we have seen in the current BA dispute and many other recent disputes, employers have been able to exploit a loophole in the existing law by using minor technical errors in a trade union ballot for industrial action to frustrate the democratic decisions of trade unionists who wish to take action.
"This resort to the courts by some ruthless employers is bringing current employment law into disrepute and undermining industrial relations in this country. The courts are being dragged into disputes and used as weapons in the hands of bullying employers."
