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BA to cut up to 12,000 jobs in "restructuring and redundancy programme"

BA to cut up to 12,000 jobs in "restructuring and redundancy programme"

Old May 4, 2020, 9:19 am
  #466  
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Originally Posted by ermis177
Does it? According to Financial Times article ( i cannot post it as it is behind a pay wall, article is BA job cuts: peanut analogy) slashing the payroll by 12.000 staff will save BA just 5 per cent of ex-fuel operating costs on 2019 numbers...
I am not taking sides here, but that statement is a little misleading, disingenuous perhaps. The full quote is (bolding mine for emphasis):

"... Broker Goodbody reckons four months pay is the average redundancy cost, implying a restructuring charge of £200m. Take that in a single hit, and the one year saving for BA would be just 5 percent of ex-fuel operating costs, on 2019 numbers..."

If we are going to debate the rights and wrongs, it is important that we see more of the picture.
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Old May 4, 2020, 9:23 am
  #467  
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So what’s the forecast win for BA of cheaper labour in say 2023 & 2024?
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Old May 4, 2020, 9:25 am
  #468  
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Originally Posted by Concorde2
I disagree, the way we are treated by our employer has nothing to do with the customer. Without them we wouldn’t be here regardless of contract.

A lot has happened over the years, but I still try hard to be genuine and human, it’s harder to do the reverse and I think anybody who doesn’t treat others well because of their employer should be ashamed of themselves. It’s about being human, nice, and channelling your annoyance at the company in the right way.
Concorde2, welcome to FlyerTalk and especially to the BA forum. I hope we get to see more of you here. Wishing you and your colleagues the very best as this horrible situation unfolds. Here's hoping for an equitable solution for all involved.
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Old May 4, 2020, 9:38 am
  #469  
 
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Originally Posted by richardwft
Generally, aren’t expensive cabin crew replaced with cheaper cabin crew as and when they leave? Reducing labour costs is being done anyway.
There's roughly 1% attrition with EF and WW compared to roughly 20% on MF. Now again, those that know my posting history know I've been very critical of MF in the past too, but there's very little attrition of the "more expensive" fleets.
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Old May 4, 2020, 9:40 am
  #470  
 
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There seems to be an element of operational efficiency going on, not just direct operational costs - e.g. ability to lower IRROPS because they have one pool of crew rather than three which aren't interchangeable, lower probability of future strikes, etc.
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Old May 4, 2020, 10:07 am
  #471  
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Was just looking at some numbers from a cabin crew member. His base salary will be cut from £33,000 to £13,500.

Just in case some people don’t understand the scale of this .....
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Old May 4, 2020, 10:19 am
  #472  
 
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Originally Posted by Tobias-UK
I am not taking sides here, but that statement is a little misleading, disingenuous perhaps. The full quote is (bolding mine for emphasis):

"... Broker Goodbody reckons four months pay is the average redundancy cost, implying a restructuring charge of £200m. Take that in a single hit, and the one year saving for BA would be just 5 percent of ex-fuel operating costs, on 2019 numbers..."

If we are going to debate the rights and wrongs, it is important that we see more of the picture.
As i have read the article in the morning and i could not read it again ( i think you can read 3 FT articles for free once per day) i was not able to provide the full paragraph but only paraphrase what i remembered. Not misleading or disingeneuous at all.

That's why i provided the article headline as well...
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Old May 4, 2020, 10:34 am
  #473  
 
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Originally Posted by Raffles
Was just looking at some numbers from a cabin crew member. His base salary will be cut from £33,000 to £13,500.

Just in case some people don’t understand the scale of this .....
Is there a breakdown of what cabin crew actually earn? We constantly hear about the low MF basic wage but I would be interested to know what typical earnings would be including allowances and how many hours per week/month/year are required to earn this. Also are allowances in MF higher than for WW to partially offset the differential in basic wage?
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Old May 4, 2020, 11:00 am
  #474  
 
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BA have too many aircraft types to have one single operational fleet of crew who are fully interchangeable. Until the 747 and 380 are gone completely they’ll still need a second sub-fleet of some guise

they don’t need three groups though I agree, and those groups which do remain, significant operational efficiencies can be made within one of them. The days of five days off after a Singapore are probably gone. Much more roster flexibility is also needed from one group.

theres ten years of evidence that the long haul CSL role isn’t needed too

I expect gatwick will also suffer badly in these cuts as the fortress of Heathrow is protected. I do expect gatwick to survive however but massively reduced.

offering more part time and 6/9/12 months of unpaid leave will provide the rest of the numbers.
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Old May 4, 2020, 11:00 am
  #475  
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For clarity, Mixed Fleet are also being forced to sign a new contract. It seems that this will mean that even they get to take a pay cut! The £13,500 number above is lower than the current Mixed Fleet starting number for anyone out of their initial period, I think.
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Old May 4, 2020, 11:11 am
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Mr Cruz and Mr Walsh are such charming people, aren't they?

What are their annual salaries again? What multiple of £13,500???
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Old May 4, 2020, 11:12 am
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Originally Posted by Raffles
Was just looking at some numbers from a cabin crew member. His base salary will be cut from £33,000 to £13,500.

Just in case some people don’t understand the scale of this .....
That’s very similar to me, but also my first figure is a 75% contract and the second figure is a full time contract.... allegedly...
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Old May 4, 2020, 11:13 am
  #478  
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Originally Posted by Raffles
For clarity, Mixed Fleet are also being forced to sign a new contract. It seems that this will mean that even they get to take a pay cut! The £13,500 number above is lower than the current Mixed Fleet starting number for anyone out of their initial period, I think.
That doesn’t sound enough to afford the rent for sharing a room with 2 others or more within easy distance of LHR.
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Old May 4, 2020, 11:20 am
  #479  
 
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Originally Posted by richardwft
That doesn’t sound enough to afford the rent for sharing a room with 2 others or more within easy distance of LHR.
the assumption is it’s enough for you to live with Mum and Dad (who also provide the crew with a car).
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Old May 4, 2020, 11:36 am
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Originally Posted by A P Yu
the assumption is it’s enough for you to live with Mum and Dad (who also provide the crew with a car).
Marvellous.

Presumably the same logic will be applied at Board level.

Pay the CEO £13.5k. They’ll stay because of the prestige of working for BA & be just delighted to still have a job. Oh. Wait.
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