Ba Redeployment Agreement
Stubbs advised employers to speak with their employees to obtain voluntary consent for possible reductions in working time outside of their contracts and offered to sign each agreement in writing. Employers may temporarily lay off employees, but if they do not have specific redundancy clauses in their contracts, workers must receive their full salary during this period. Employers with redundancy clauses would only have to receive the legal money from the guarantee – currently $29 a day, which rises to $30 a day from April 6. Employers without such a clause could, however, consider entering into a voluntary agreement with employees to reduce wages if the alternative is dismissal, Holcroft said. Official statistics show an increase in the number of unemployed households, but experts say that wage cuts and redeployments have reduced the “worst effects” of the pandemic I am writing following our March 16 letter 2020.In the situation has deteriorated significantly in the short term. Our flight schedule and usage factors continue to decline. The impact on British Airways and the industry in general is more than any other crisis we have experienced before. Together, we were able to lay off thousands of employees through access to the UK government`s employment program. This allowed us to interrupt our advice and provide immediate short-term relief to our employees in an extreme and difficult business environment. Unfortunately, there are no clear signs of improving passenger demand.
Last week, we operated less than 5% of our normal operating plan. Our Gatwick and London City businesses are now closed and there is no certainty as to when these services will return. We have not ruled out suspending the rest of our Heathrow operation. EasyJet, Ryanair and Virgin have suspended passenger traffic and other major competitors have announced sustained structural cuts. Market and branch reports (from IATA, consulting firms, investment banks, etc.) indicate that it will be some time before consumer confidence recovers and that there is therefore little chance of a rapid recovery, even if the immediate health crisis subsides. The World Aviation Association (IATA) said the sector had never experienced a deep-sea recession and that industry passenger revenues could fall by 55% over the full year compared to 2019, while traffic is down 48%. This shows how unpredictable and difficult the situation is and how difficult it is likely to be in the future. It should also be noted that many of British Airways` competitors in Europe and around the world receive state aid in various forms. The resulting competitive environment will create a distorted market in which some of these competitors will have the opportunity to provide excess capacity and lower rates. We continue to take steps across the company to get cash, but many of them are short-term measures.