Heathrow “to slash staff pay by up to a third” becoming a “low cost employer”after collapse in air travel 

Heathrow staff are being asked to accept pay cuts of up to 37% and will lose their final salary pension scheme. It will also end paid breaks and allowances, worsen redundancy terms, and refuse to honour a pay rise. The airport wants to slash pay and conditions for its 7,000 workers in a bid to become a low-cost employer, according to union chiefs – an allegation denied by management. Air travel demand is currently low, (88% lower in July 2020 than in July 2019) and not expected to rise much in the short term. The aviation sector cannot afford to pay so many staff, when it has little income. Heathrow said it has been forced to take action now to protect jobs. But the union Unite (which has always been an enthusiastic backer of Heathrow and its expansion plans) has told its members that the airport is acting out of “greed, not need” and said it was using the pandemic as a smokescreen to cut pay and conditions. It added that Heathrow paid £100m in dividends in April. Unite says John Holland-Kaye told unions that he wanted to make the business a “low-cost employer” during a meeting on July 30th. Many staff working around Heathrow are not directly employed by the airport, but associated businesses. There could be over 20,000 job losses in these companies.

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Heathrow ‘to slash staff pay by up to a third’ after collapse in air travel

The airport says it has to reduce pay and perks to save jobs as coronavirus prevents people from flying

Heathrow staff are being asked to swallow pay cuts of up to 37pc and will lose their final salary pension scheme as the airport grapples with a plunge in global travel, unions have claimed.

The company is seeking to slash pay and conditions for its 7,000 workers in a bid to become a low-cost employer, according to union chiefs – an allegation denied by management.

A row has broken out between the two sides amid negotiations over changes to staff contracts. Heathrow says these are vital to avoid job cuts, as the airport nurses coronavirus losses of £1bn and rising.

Heathrow – whose owners include Spanish company Ferrovial, the Qatar wealth fund, and China Investment Corp – earlier this week reported an 88pc collapse in passengers in July compared to last year. Around 60pc of its routes are still grounded as the air travel industry reels from the impact of Covid-19.

But in a letter to members, union Unite accused the business of acting out of “greed, not need” and said it was using the pandemic as a smokescreen to cut pay and conditions. It added that Heathrow paid £100m in dividends in April.

Heathrow boss John Holland-Kaye told unions that he wanted to make the business a “low-cost employer” during a meeting on July 30, it is claimed.

Unite accused the firm of planning to cut pay by up to 37pc, close its lucrative final-salary pension scheme, axe paid breaks and allowances, worsen redundancy terms, and refuse to honour a pay rise.

Wayne King, Unite regional co-ordinating officer, said: “Heathrow is cynically using Covid-19 to bounce workers into accepting drastic attacks on their pay in order to boost  profits.”

Heathrow hit back at the allegations, saying they are completely false and have been taken out of context.

A spokesman added: “The airport’s intent was never to become a low cost employer, and throughout four months of talks, our priority has always been to protect jobs.”

Heathrow said that earlier pay deals were agreed in a far better business environment, and that it has been forced to take action now to protect jobs.

The spokesman added that pay cuts will generally be smaller than claimed by unions, with most wage reductions coming in at between 15pc and 20pc.

He said: “Our final proposal will provide a job for all of our colleagues and ensure the long-term future of the airport. We urge our union partners to accept the revised offer.”

Last month, Mr Holland-Kaye warned that new Government restrictions such as the ending of air bridges and requiring travellers to self-isolate for two weeks could lead to as many as 25,000 job losses for people working at the airport.
https://www.telegraph.co.uk/business/2020/08/12/heathrow-acting-greed-not-need-claims-union/
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Fears many Heathrow staff could be fired and re-hired with big pay cuts

But the airport says it will guarantee jobs for those who want one

By Anahita Hossein-Pour (My London)
12 AUG 2020

A strike of workers at Heathrow is “increasingly likely” according to union bosses who have slammed the airport over proposed pay cuts for staff.

Unite the union have been negotiating with the airport over changes to pay, allowances and conditions for the hub’s 4,000 directly employed staff, and chiefs are calling on its members to reject Heathrow’s offer.

According to the union, Heathrow has “threatened” to issue section 188 notices which would mean staff being fired and re-hired on “inferior” contracts. It also claims some workers could see pay cut by £8,000 a year in proposals that could see some employees take a 20 per cent slash in salary.

Unite regional co-ordinating officer Wayne King said : “HAL [Heathrow Airport Limited] is cynically using Covid-19 to bounce workers into accepting drastic attacks on their pay in order to boost boardroom profits.

“This is pure greed, not need.

“Unite has made proposals that pay cuts should be temporary but Heathrow has rejected this out of hand.

“The pay cuts faced by our members mean that many could lose their homes.

“If as expected Unite members reject these huge pay cuts we will take whatever steps needed to protect our members’ pay.

“HAL is threatening to hire and fire the very workers who have dedicated their lives to serving passengers at the airport.

“Unite is urging HAL to withdraw these massive pay cuts and return to the negotiating table where Unite is committed to discussing fair cost reductions.

“We recognise that there challenges for this industry as a result of the Covid-19 pandemic but forcing the workforce onto the breadline is not the responsible or necessary answer to this crisis.”

In a letter sent to Unite members on August 10, union bosses accused the airport of having a “long-held ambition” to slash workers’ terms and conditions and become a “low-cost employer”.

Members previously agreed to a 10 per cent pay cut temporarily due to the pandemic, but proposed changes now would look to be a permanent solution.

Earlier this year Heathrow offered workers’ a voluntary redundancy scheme, which 800 employees accepted, Unite reports.

The row comes as Heathrow Airport confirmed its passenger traffic for July, which was down 88 per cent on the previous year.

In April, the international hub reported a 97 per cent cut in passenger traffic compared to the previous year.

July’s upturn was attributed to the government’s creation of “travel corridors” to certain countries without the need for a 14-day quarantine on return to the UK.

Airport bosses have said the business has lost more than £1 billion due to the crisis.

Reacting to Unite’s accusation that the airport was looking before the pandemic to cut conditions, a Heathrow spokesperson said the claims were “completely false”.

They said: “The airport’s intent was never to become a low cost employer, and throughout four months of talks, our priority has always been to protect jobs. We now have a proposal on the table that will guarantee a job at Heathrow for anyone who wants one.

“We will also protect or increase pay for half of our colleagues. Regrettably, those on higher pay agreed when aviation was experiencing much better days will have to take a pay cut if they want to stay on at Heathrow. For most of those colleagues, this would be between 15 to 20 per cent.

The spokesperson added: “No business ever wants to be in this position, but guaranteeing a job for everyone means that we have to make some changes. COVID-19 has been the worst crisis to ever hit the aviation sector and has already cost our business over £1 billion.

“A speedy recovery with travel restrictions changing daily and the ongoing threat of a second wave is not going to be possible and as a result, we cannot continue operating as we did before. Our final proposal will provide a job for all of our colleagues and ensure the long-term future of the airport. We urge our union partners to accept the revised offer.”

https://www.mylondon.news/news/west-london-news/fears-many-heathrow-staff-could-18759404

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See also

Half of people will reduce air travel

Ben Webster, Environment Editor (The Times)

August 12 2020,

Almost half of people will never fly as often as before according to research which suggests the pandemic lockdown will result in lasting changes that can help to tackle climate issues.

About a third of people will work from home more often, having got used to not commuting in the past five months. Spending more time at home has also helped people to become less wasteful, with 16 per cent saying they threw nothing away during the lockdown compared with only 8 per cent before it was imposed. This was partly due to better meal planning and freezing excess food.

Researchers from Cardiff and Manchester universities said the results suggested that the lockdown had disrupted habits and many people were keen to maintain their more environmentally friendly practices. Use of public transport is an exception, with 52 per cent intending to use buses and trains less often in future. The researchers said this suggested a worrying trend towards driving more but might indicate a greater desire to walk and cycle.

The findings are based on two surveys which questioned a total of 1,800 people in late May and early June. Public concern over climate change had increased during the pandemic, which surprised scientists as concerns about one large issue tend to lead to a reduction in worrying about another.

Lorraine Whitmarsh, director of the Centre for Climate Change and Social Transformations at Cardiff University, who led the research, said the finding that people intended to fly less for leisure was “particularly striking”, as was a large increase in support for limiting flying to tackle climate change. The researchers found that 47 per cent of people intended to reduce the amount they flew for leisure. Only 8.3 per cent planned to fly more often and 45 per cent intended to go back to their pre-lockdown frequency.

Online food shopping more than doubled from 12 per cent to 25 per cent during the restrictions. Less was spent in lockdown, with 63 per cent spending nothing on clothes and shoes in the three months after it began.

Claire Hoolohan, research fellow at Manchester University, said: “Our findings illustrate that the restructuring of everyday life that has occurred since lockdown was implemented has allowed low-carbon practices to take hold.” She added: “The question that faces society now, is how do we recover from Covid-19 in a way that means society is healthier, happier and more sustainable than before.”

https://www.thetimes.co.uk/article/half-of-people-will-reduce-air-travel-b9qdfxpsk
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