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Costly BA dispute finally nears end

posted 12 May 2011, 11:38 by Mpelembe Admin   [ updated 12 May 2011, 11:40 ]
British Airways has struck a peace deal with the Unite union which should bring to an end an 18-month pay dispute that had cost the airline more than 150 million pounds ($247 million).
UK-BA DISPUTE - British Airways has struck a peace deal with the Unite union which should bring to an end an 18-month pay dispute that had cost the airline more than 150 million pounds ($247 million).

It's one of the longest and costliest disputes in the UK.

But after 18 months British Airways and the Unite union have now reached an agreement over cost cutting.

Union leaders are recommending a new two year pay deal to its members - they will be balloted over the next month.

The dispute began in 2009 when BA announced plans to cut 1,700 jobs and freeze pay.

22 days of strike action followed costing BA 150 million pounds and causing chaos for passengers.

The treatment of strikers also became an issue after travel perks were removed and disciplinary action taken against some union members.

A new strike had been planned for next week - it's now been called off.

BA said it was pleased the union had accepted that the cost-cutting changes were permanent.

And said the deal would help ensure this kind of dispute could never happen again.

That's good news for passengers and shares in IAG - the group BA is now part of - rose 0.6 percent on the news

The result of the ballot will be known in July.

Hayley Platt, Reuters.

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