British Airways suspends 30,000 employees amid growing COVID-19 crisis
Category: #headlines  By Mateen Dalal  Date: 2020-04-04
  • share
  • Twitter
  • Facebook
  • LinkedIn

British Airways suspends 30,000 employees amid growing COVID-19 crisis

British Airways, a renowned British airline, has reportedly reached a new agreement with unions according to which over 30,000 ground staff and cabin crew members would be suspended. This is the most dramatic move ever to take place in the commercial airline industry as the company hopes to weather the economic crisis that is on the horizon due to the coronavirus pandemic.

With global travel witnessing a heavy downfall as the COVID-19 spreads across the world, owner of British Airways, IAG stated that along with these suspensions, it would also cut the capacity by 90 percent during the months of April and May, and abandon its dividend, in hopes to survive the worst downfall in the company’s history.

With the company already having signed a 50 percent pay cut agreement when it comes to the salaries of its pilots, this new deal mainly focuses on ground and cabin crew, office staff, and engineers.

This move comes following the union chiefs' announcement that British Airways would furlough a prominent majority of its employees with 80 percent pay.

As per the Unite Union, the airline would propose its own updated version of the government’s job retention scheme. The union chiefs stated that there won’t be any cap on earnings, unlike the government scheme. 

Unite Union stated that workers would be able to move their pension contributions to their pay for a short time and there would not be any unpaid temporary redundancy or lay off. The Union also stated that one such redundancy procedure that had started previously has already been stopped.

Chief of British Airways, Alex Cruz also announced that he would not be taking a salary for the coming two months.

Previously on Thursday, IAG also terminated its final dividend which saved $366 million of the company. The company stock had grown on the basis of the job plan, but closed out at 1 percent by day-end.

Hundreds of firms globally across a diversified array of sectors have abandoned dividends in efforts to conserve cash, but this move by IAG is a major blow for investors since it has been the third-highest yielding stock on the basis of dividends in the UK’s benchmark FTSE 100.

    

Source credit: https://www.dailymail.co.uk/news/article-8181301/British-Airways-furlough-workers-80-cent-pay-grounding-flights-Gatwick.html

 

  • share
  • Twitter
  • Facebook
  • LinkedIn


About Author

Mateen Dalal    

Mateen Dalal

A qualified electronics and telecommunication engineer, Mateen Dalal embarked on his professional journey working as a quality and test engineer. Harnessing his passion for content creation however, Mateen pens down industry-rich articles for ReportsGO.com and a few o...

Read More

More News By Mateen Dalal

NSW calls for project ideas for its 1st renewable zone in Central West
NSW calls for project ideas for its 1st renewable zone in Central West
By Mateen Dalal

Public intervention in any form of producing unique ideas and solutions to support the government initiatives, has always been acclaimed as a commendable effort. This eventually has urged various state and central governments to lay their focus on as...

Teva presents AJOVY’s new data on migraine impact in European adults
Teva presents AJOVY’s new data on migraine impact in European adults
By Mateen Dalal

The analysis examines impact of migraine in areas of Spain, France, and the United Kingdom. Migraine has been one of the prominent neurological conditions that is mostly prevalent in adults and can cause multiple symptoms such as throbbing headac...

Australia researchers introduce an internet speed record of 44.2 Tbps
Australia researchers introduce an internet speed record of 44.2 Tbps
By Mateen Dalal

In these crucial times, when high speed internet has become a necessity for all those company employees working from home or the students studying through online courses, Australian researchers have achieved a breakthrough in the bringing forth the f...