NYTimes.com Article: British Airways in Pact With Unions

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British Airways in Pact With Unions

August 21, 2004
 By BLOOMBERG NEWS





LONDON, Saturday, Aug. 21 (Bloomberg News) - British
Airways P.L.C. reached a pay accord early Saturday with two
unions, averting a planned strike during the Aug. 27-30
holiday weekend by 11,000 baggage handlers and check-in
workers.

Employees will receive a £1,000 bonus ($1,820), plus a pay
raise equal to inflation over the next three years, a
British Airways spokesman, Paul Parry, said in an
interview.

The agreement came during talks with the GMB and Transport
and General Workers unions at the airline's headquarters
near Heathrow Airport in London.

"This agreement should now bring the period of stability
for B.A. that the company was looking for," said Andrew
Dodshon, a spokesman for the transport union.

The unions had planned to strike for 24 hours this coming
Friday unless an agreement was reached. The previous pay
contract expired in January.

The airline's chief executive, Rod Eddington, plans to cut
labor costs by £300 million over the next two years amid
competition from discount carriers and rising fuel prices.

http://www.nytimes.com/2004/08/21/business/worldbusiness/21brit.html?ex=1094103271&ei=1&en=e84d35bcf3204c3e


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