There will be more job losses at British Airways as a result of the airline’s agreed merger with Iberia, BA chief executive Willie Walsh warned yesterday.
Walsh, who will retain his position in the merged company, called Top Co, said: ‘I’m not going to deny that there will be some job cuts.
‘It is clear, that when you put two companies together in a group structure like this, you can make savings in back-office activities.’
The two loss-making airlines reached a preliminary agreement to merge on Thursday night but Iberia has threatened to walk away from the deal unless BA funds its own £2.6 billion pensions deficit.
Last week, BA said it would cut 1,200 jobs after making a loss over the summer period for the first time.
This was the latest in a series of job-cut announcements meaning the airline plans to shed a total of 4,900 posts by March 2010.
The Unite trade union, which is in dispute over BA’s plans to impose cuts, in a statement yesterday warned that it ‘will not back the merger unless commitments are given to avoid compulsory redundancies, and that passenger service standards will be of the highest possible quality’.
The union has written to BA boss Walsh to urge that the airline’s workforce and service standards ‘are not swept aside in the rush’ to conclude the merger with Iberia.
Fearing that the merger will mean significant job losses as both airlines seek to streamline shared functions, Unite is asking for guarantees from BA ‘specifically that core UK-based services such as customer service, engineering, maintenance and cabin crew will be protected’.
The statement added: ‘Unite also wants assurances that BA’s industry-acknowledged high standards of service will set the benchmark for passenger service within the merged airline, and that BA will retain Heathrow as its hub of operation, supported by Gatwick, and preserve all current terms and conditions of employment and negotiating structures.’
Steve Turner, Unite national officer for civil aviation, said that the unions in both countries are working closely to ensure the workforce is not sidelined in the merger process.
He said: ‘It is imperative that both companies sit down as soon as possible with the unions here and in Spain to discuss how jobs and standards can be safeguarded.
‘Our continued support for this project, as well as the stability we are all seeking to bring to British Airways at this current time, are dependent upon a satisfactory agreement being reached between us and both companies.’
Brian Boyd, fellow Unite national officer for civil aviation, added: ‘Cost savings are one of the main drivers in the current trend for merger within the aviation industry which is why Unite views the news of this merger with extreme caution.’
He added: ‘Unite has requested an urgent meeting with Willie Walsh to discuss the timetable and workforce implications of the merger with Iberia.’
Mick Rix, GMB national officer for aviation, said: ‘GMB cautiously welcomes this proposed merger between these two major European airlines.
‘The merger will go some way to ensure that the UK’s major flag carrier stays up there as one of the major airlines of the world. Aviation is an industry with a bright future and it is essential that the UK has a central role in it.’
