BA workers accept pay cuts

Employees at the national airline are said to have responded in droves to cost-saving calls from chief executive Willie Walsh, with around 4,000 opting to take unpaid leave and another 1,400 prepared to work on a part-time basis. 800 workers have said they will work for free for a month, following the example set by Walsh himself and chief financial officer Keith Williams, who have committed to work for nothing in July.

The cutbacks will save the company £10m and are seen as vital to its continuing survival. Walsh said of the news "This is a fantastic first response. I want to thank everyone who has volunteered to help us pull through this difficult period. This response clearly shows the significant difference individuals can make."

The airline is to be flexible on when employees can take their unpaid work days and says they can spread them over a six month period, with salary taken from pay packets over a similar period.

The move is the latest in a series of industry-wide efforts to cut staff and reduce costs as the recession takes its toll on company profits. However not everyone applauded the strategy, with union Unite criticising the airline for forcing its members into accepting the proposals.

WHAT THEY ARE SAYING

Tracy Alloway in the FT: "Talk that the government could step in to help the carrier, albeit mostly from rival Virgin boss Sir Richard Branson, is therefore unsurprising, though BA rigorously denies it’s in discussions with politicians. We would think that before it ever gets to that stage, BA management will be thinking of raising additional funds – either through the debt market, via aircraft financing, selling off assets, deferring capital expenditure, or even a rights issue."

Unite national officer Brian Boyd on BBC.co.uk: "The proposal for employees to 'work for nothing' is unrealistic. The fact that less than 2% of BA's workforce chose to take up this option demonstrates that there is no real support for this."