U.K. Prime Minister Boris Johnson backed off from intervening in British Airways plans to cut pay and modify contracts for remaining staff after dismissing thousands of others.
“British Airways and a number of other companies are in severe difficulties at the moment,” Johnson told lawmakers in Parliament on Wednesday. “We cannot simply with a magic wand ensure that every single job that was being done before the crisis is retained after the crisis.”
Johnson was responding to a question from Labour opposition leader Keir Starmer, who asked whether the premier would tell British Airways that its actions would have consequences for its slew of lucrative airport landing slots.
British Airways, a unit of IAG SA, met with criticism after saying it planned to eliminate 12,000 jobs, or about 30% of the total, while tapping a state furlough program aimed at safeguarding employment.
The House of Commons Transport Committee accused the airline of using the coronavirus crisis as an excuse to cut the payroll, while Aviation Minister Kelly Tolhurst said she might ask the Civil Aviation Authority to confiscate BA slots, before cautioning that it wouldn’t be possible under the current system.
Starmer said Johnson himself had emailed British Airways staff making clear firms should not be using furlough money to keep people on their books and then remove them.
He added that with the contract changes the airline is seeking to force through the rehiring of 30,000 workers “on worse terms and conditions.” BA’s proposed deal for flight attendants would maintain 80% of salaries while limiting job cuts. It has rowed back on plans to dismiss and rehire all 4,300 pilots.
IAG Chief Executive Officer Willie Walsh has dismissed the attacks, saying British Airways is “fighting for its survival.”
