BA’s Walsh confident airline can avoid labour disruption over pensions
LONDON (AFX) - Willie Walsh, chief executive of British Airways PLC, said he is confident the airline’s unions will not take industrial action this summer over management plans to tackle a 2.1 bln stg pension deficit.
Last month, BA announced plans to force employees to work until 65 in return for a cash injection of 500 mln stg into its New Airways Pension Scheme.
The proposals drew an angry response from unions who raised the possibility of strike action over the crucial holiday period.
However, speaking to reporters, after BA published full year results, Walsh is adamant a strike is not on the cards.
‘There isn’t going to be one,’ he insisted.
‘I’m confident that we can tackle all of the issues that are before us. I’ve committed to doing this in a structured way in direct discussion and dialogue with the trade unions,’ he said.
‘Our customers can continue to book in confidence with BA and that’s exactly what they are doing.’
Earlier, the airline reported a better-than-expected 21 pct increase in full year pretax profit.
By 9.09 am, shares in BA were up 21-1/4 pence, or nearly 7 pct, at 341-1/4 pence, valuing the business at 3.86 bln stg
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