Union leaders tonight accused the company at the centre of the Heathrow airport dispute of walking out of peace talks and claimed that negotiations had now “collapsed”.
The dramatic development threw a huge question mark over attempts to resolve the bitter row over the sacking of 670 workers by catering firm Gate Gourmet.
The company spent 18 hours in talks with the Transport and General Workers’ Union over the past two days and seemed to be edging towards a deal.
British Airways announced it had agreed the terms of a new contract with Gate Gourmet to supply food for its flights at Heathrow until the year 2010 but added it was conditional on the industrial dispute being resolved.
Most of the Gate Gourmet team of officials left the meeting with the TGWU looking grim-faced, but the company’s chairman David Siegel said he was “cautiously optimistic” of reaching an agreement although he insisted that he would not reinstate all the workers, one of the key demands of the union.