London - Direct talks between British Airways (BA) and trade unions on long-term cost-cutting measures were deadlocked Wednesday, raising the spectre of industrial action over the summer months. BA said it had called in the conciliation service Acas to mediate between the two sides after crucial talks ended without agreement late Tuesday.
"It has not proved possible to conclude an agreement with the trade unions on our pay and productivity discussions by the deadline of 30 June," BA said in a statement.
However, the Unite and GMB trade unions said they were prepared to continue the negotiations. But no-one from BA had turned up for talks at a hotel venue Wednesday.
The BA management had set a June 30 deadline for the negotiations, which included securing a two-year pay freeze for cabin staff and more than 3,500 further redundancies.
Analysts said that BA, which ran up a pre-tax loss of 401 million pounds (659 million dollars) in 2008, was seeking "permanent changes to employment contracts" - something unions were rejecting.
While trade unions were prepared to make "short-term sacrifices" to help the airline beat the recession, they were not interested in "re-negotiating fundamental contracts."
BA chief executive Willie Walsh has described the current round of talks as part of BA's "fight for life." He has appealed to the airline's 40,000 staff to work without pay for a month or to take unpaid leave to help it overcome crisis.
Walsh himself has agreed to work unpaid in July, forgoing his month's salary of 61,000 pounds.
Last week, some 800 workers said they would volunteer to work for nothing for up to a month, while thousands said they would take unpaid leave or work part-time.
Analysts said Wednesday's breakdown in talks could lead to a hardening of attitudes over BA's plan to involve workers in cost-cutting measures and spark strikes during the busy summer period.
