viewInternational Consolidated Airlines Group

IAG's British Airways heavily criticised after 10,700 job cuts

The decision sparked controversy in the government and among workers' unions, with protestors gathering at the weekend

International Consolidated Airlines Group - IAG to inform thousands of British Airways employees on their fate

International Consolidated Airlines Group PLC's (LON:IAG) British Airways has been heavily criticised after cutting 10,700 jobs.

Over 6,000 workers accepted voluntary redundancy, but the airline let go another 4,700 staff on Friday in a bid to boost savings as the industry is ravaged by the coronavirus crisis.

READ: Hammerson and IAG stoke funding market back up after quiet July

Cabin crew and ground staff were offered one of three options: being made redundant, having to sign a new contract (most likely with worse conditions, with some risking to lose £20,000 annually) or keep their job with their existing contract.

Those who are being let go were offered to enter a fast-track talent pool when new roles are available.

The job cuts sparked outrage both in the Labour and Conservative benches and among workers' unions. Protestors also gathered in Manchester and Reading at the weekend.

“This is a very bleak day for the incredible BA workforce and will go down in the history of the airline as the day that it put the interests of the boardroom ahead of its passengers and workforce,” said Howard Beckett, assistant general secretary at workers’ union Unite.

“This is a business that made record profits last year. It has predicted that it will return to health in two to three years - and it even has the money to buy another airline, Air Europa. It has the cash to afford to make different choices, as can be seen by how it is conducting itself with its Iberia and Aer Lingus operations, but instead is using this crisis to remodel what was once the flag-carrier as a low-cost airline.”

Last month, BA agreed with the pilots’ union 270 compulsory redundancies, while the number of pilots shrinks to a ‘holding pool’ of the equivalent of 300 pilots employed on reduced pay and ready to return to flying as demand picks up.

With parent IAG reporting a cash burn of £178mln per week, BA had originally proposed to make up to 1,255 pilots redundant.

Shares in IAG added 5% to 194.63p on Monday at noon.

Quick facts: International Consolidated Airlines Group

Price: 156.2 GBX

Market: LSE
Market Cap: £7.76 billion

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