British Airways cabin crew reject airline offer, raising prospect of more strikes

BA faces threat of new strikes as pay deal fails

LONDON — British Airways PLC is facing the threat of new strikes after cabin crew Friday rejected an offer from the airline that would have resolved a bitter dispute over pay and working conditions.

BA accused Unite union leaders of “orchestrating” the rejection of what it termed a “very fair” offer.

Shares in the carrier slumped 6 percent to 192.2 pence ($2.83) as the vote marked a new roadblock in reaching an agreement to end a dispute that has been dragging on for more than a year.

“Strike action would not only be a disaster for BA customers, but also for the airline itself,” said Peter Smith, flights expert from travelsupermarket.com. “Having already lost millions during the recent ash disruption, the airline can simply not afford to let this dispute rumble on any longer.”

BA estimated that two strikes by cabin crew in March over seven days cost it around 45 million pounds ($65.8 million) in canceled flights and contingency provisions, including hiring other aircraft complete with crew.

The airline lost a further 180 million pounds last month when the Icelandic volcanic ash cloud grounded flights.

Cabin crew representatives will now discuss the next steps with union leaders, but have been agitating in recent weeks for lengthy strikes. Unite will have to give a week’s notice of any new planned walkout.

“BA management should take note of their own employees’ strong rejection of their offer and immediately address the outstanding concerns,” Unite’s joint general secretaries Derek Simpson and Tony Woodley said in a statement. “They should make no mistake that Unite is fully committed to supporting our members in furthering this dispute if no resolution is found.”

Unite said that 81 percent of workers voted against accepting the latest deal from the airline, based on turnout of around 71 percent in the ballot of around 13,000 workers.

The union had advised its members to turn down the latest offer from BA because the airline had failed to restore travel perks taken away from staff who joined in strike action in March. It is also unhappy that BA is taking disciplinary action against more than 50 union members and fired an official who represented cabin crew.

BA said it was disappointed, but not surprised at the ballot result, again warning the union that the dispute was harming the airline’s chances of recovery from two consecutive years of record losses.

BA had implemented the series of disputed changes to pay and conditions, including reducing the number of crew on long haul flights and a pay freeze, to cut costs after the global financial crisis hit passenger demand.

“We urge Unite to put an end to this unnecessary dispute and focus on the best interests of its members,” the union said in a statement. “There can be nothing positive to be gained from further strikes.”