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From The Socialist newspaper, 18 November 2009

British Airways merger plan poses new threat to workers

FRIDAY 13TH was the date BA and Iberia announced the details of their proposed merger. While the potential pay-off of a successful merger will prove very lucky for the bank balances of bosses at BA and Iberia it could well prove to be very unlucky for the workers at both companies.

Neil Cafferky

Under the proposed deal the merged company would be 55% owned by BA shareholders. The lash up between the two companies probably "signals a higher degree of confidence on the part of both carriers about underlying prospects," said Nick Cunningham, at Evolution Securities.

The deal is due to be finalised by February, however there is one potential stumbling block that could scupper BA's plans. Iberia could walk away from the deal if it reaches the "reasonable opinion" that the pension fund could be "materially detrimental to the economic premises of the proposed merger".

In plain English this means the company must reduce the amount of money it pays into the pension fund.

This fact must be borne in mind when considering the current offensive by BA management against the wages and conditions of staff .

Agreement threat

As The Socialist has previously explained, the centrepiece of BA's plan to reduce costs is to destroy the 1948 Redeployment Agreement.

In short this agreement ensures that wages and therefore pensions can never be reduced. Rather than scrap this agreement in one go, which would probably trigger company-wide strike action, BA intends to nibble round the edges and gradually do away with the agreement section by section.

The current plan to create a two-tier workforce among cabin crew is a case in point. BA intends to make 3,000 redundancies and set up a new fleet of cabin crew.

This new fleet will be on reduced wages and therefore pensions. Any promotion or redeployment from the old, better paid fleet will be into the new fleet on worse pay etc. This process will then allow BA to reduce the pay to cabin crew over a number of years.

Since cabin crew make up one-third of staff this will make a significant dent in BA's pension contributions and would put the company in a powerful position to use similar tactics against the rest of the workforce.

This plan of course is dependent on defeating cabin crew who are currently balloting for strike action, possibly in the run-up to Christmas.

There is a possibility that the threat of strike action will force BA to withdraw their impositions. However the pension issue will act to harden BA's stance towards cabin crew. For cabin crew there is also a hardening of the mood of defiance.

At the Unite union branch meeting of cabin crew there was much criticism of the decision by the national Unite leadership to abandon strike action over similar issues two years ago.

Although a deal averting strike action cannot be ruled out, the ground for compromise appears to be narrowing by the day.

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The coronavirus crisis has laid bare the class character of society in numerous ways. It is making clear to many that it is the working class that keeps society running, not the CEOs of major corporations.

The results of austerity have been graphically demonstrated as public services strain to cope with the crisis.

The government has now ripped up its 'austerity' mantra and turned to policies that not long ago were denounced as socialist. But after the corona crisis, it will try to make the working class pay for it, by trying to claw back what has been given.

  • The Socialist Party's material is more vital than ever, so we can continue to report from workers who are fighting for better health and safety measures, against layoffs, for adequate staffing levels, etc.
  • Our 'fighting coronavirus workers' charter', outlines a programme to combat the virus and protect workers' living conditions.
  • When the health crisis subsides, we must be ready for the stormy events ahead and the need to arm workers' movements with a socialist programme - one which puts the health and needs of humanity before the profits of a few.
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In The Socialist 18 November 2009:

Fighting for a future

Youth march for jobs


Global Warming

More evidence of climate change: Socialist planning needed


Socialist Party news and analysis

British Airways merger plan poses new threat to workers

Tamil refugees in desperate situation

Labour pushes nuclear plants

Fast news


Socialist Party workplace news

Third week of Superdrug strike

Brighton bin workers score quick victory

Leeds council delays talks to end bin dispute

Sheffield First bus drivers beat back bullying management


Socialist Party feature

Interview with Mark Serwotka, PCS general secretary


Marxist analysis: history

USSR 1989 - the collapse of Stalinism


Socialist Party election analysis

Glasgow North East by-election: Mass abstentions in Labour's 'surprise win'

Far right SDL driven out of Glasgow city centre


Socialist Party Marxist analysis

Service with a snarl: Robert Service refuses to answer questions


Workplace news and analysis

Working life in a car factory

Ericsson closure condemned by Coventry socialist councillor

Save Ashford further education

London trade unionists meet to build workers' solidarity


 

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Related links:

British Airways:

triangleGE Aviation workers march to save jobs

triangleNationalise British Airways to stop 12,000 redundancies

triangleBail out the real wealth creators, not the rich

triangleNationalise the railways: For an integrated public transport system

triangleSummer of airline industry strikes against low pay and worsening conditions

Strike:

triangleThailand: Youth rising against hated junta

triangleLondon bus drivers begin strike ballot over remote sign-on dispute

triangleTate workers on indefinite strike hold march and rally

triangleStrike wave marks new stage in revival of Iranian workers' movement

Pension:

triangleFighting for over 250 jobs that are under threat at the Wales Millennium Centre in Cardiff. Photo M Kamish

triangleTory think tank proposes attack on pensions

triangleFrench workers demonstrating in Paris on 16 January; Over 40 days of strike action have taken place against the government's attack on pensions. Photo James Ivens

Pay:

triangleFund NHS and pay rise now

triangleA day in the life of a salon worker

Pensions:

triangleUniversity workers' strike escalates

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