Cook Says BAA 'Can't Afford' Closure of London Airports Bloomberg

August 2010

Airport Closures

Bloomberg TV interview Andy Cook about the potential impact of airport closures on BAA.

Watch the full interview here.

British Airways CEO May Get Boost From Crew's Ballot Fatigue

July 2010

"It might be indicative of ballot fatigue,” Andy Cook, CEO of Marshall-James, which advises companies on employee relations, said in a telephone interview. “If that turnout is indicative of what an industrial action ballot would look like and therefore the support for industrial action, that will give British Airways a shot in the arm."

British Airways Wages

July 2010

As flight attendants begin voting today on a pay offer that ignores union grievances over the removal of travel perks, the firing of strikers and the use of volunteer staff, the appetite for stoppages is probably diminishing”, said Andy Cook, CEO of Marshall-James, which advises companies on employee relations.

http://www.businessweek.com/news/2010-07-06/british-airways-ceo-wages-war-of-attrition-as-pay-vote-starts.html

Is it game over for UNITE and BA Cabin Crew?

June 2010

Unite have today announced that they intend to reballot their members amongst BA Cabin Crew to see if they wish to continue the campaign of industrial action against the Airline.

The announcement comes as the 3rd and last of a serious of five day stoppages draws to a close, with seemingly little impact on the airline’s resolve.

Andy Cook, Industrial Relations expert at Marshall-James says "This vote will be a milestone in this dispute as Cabin Crew have been on strike for a long time and lost money, yet it has not been effective in getting BA to concede. Some Union members will be wondering if there is any point in continuing the battle, given the financial pain they will be feeling".

"If a continued strike is not supported, then UNITE will be able to claim it is the member’s who have given in. That will be a convenient way for the union to get off the hook and out of a dispute it seems it cannot win".

"The airline appears to have planned for this action and stockpiled the cash to see it through. They know that if they give in without achieving the efficiencies they need, then they will be back in this situation again and again. It really is about who controls the company" says Cook.

"Technically speaking, the union does not have to re-ballot its members to continue action, however, strikers are only granted immunity from being sacked for going on strike during the first 12 weeks. That first 12 weeks will expire before any fresh action can be taken".

"Clearly, Unite are anxious that the airline may adopt a hard line and so rather than leaving anything to chance, a new ballot in favour of industrial action will provide its member with a further 12 weeks of protection".

Unions Begin To Flex Muscles

June 2010

Unions begin to flex muscles as coalition Government moves through its first 90 days warns Andy Cook, CEO of Marshall-James

A summer of discontent could be on the cards for the new Government as it squares up for the inevitable show down with unions. Unrest is developing steadily in anticipation of major public sector job cuts. Andy Cook, Chief Executive of Industrial Relations Experts Marshall-James warns employers that some unions will try to co-ordinate action to bring about as much disruption as possible.

"There is no doubt that some within the Trades Union movement are looking to co-ordinate action with a view to attempting a national strike, particularly in the public and transport sectors" says Cook. This then causes employers a big problem, as it becomes a political issue, rather than anything that can be solved at a local level". As government spending cuts begin to bite into areas such as education, local government and the civil service, there will be serious amounts of industrial action breaking out", continues Cook.

"However, there is no doubt that the landscape of Industrial Relations in the UK is changing and the pace of change is more rapid than some unions care to acknowledge. Employers seem far more willing to tough out Industrial Action, using the courts to overturn strikes wherever possible. It remains to be seen if public sector employers will adopt the same approach. However, the Government may have no choice but to take a tough stance as they won't be able to spend their way out of issues by awarding pay increases. The next few years are going to be very turbulent".

The British Airways situation could well be landmark; a heavily unionised company prepared to stand up to considerable pressure from Unite may provide the lead for other employers, specifically to see if by holding out the strike breaks and if the tough stance will wrestle away power from a group of its employees. Employers may become less frightened by strikes.

There are currently a number of disputes which are ongoing, including:

  • British Airways and Unite
  • British Telecom and the CWU
  • Further and Higher Education Employers and the UCU
  • Civil Service and PCS
  • Transport for London/Tube Lines and the RMT

It is really important for Employers to be pragmatic when working with unions. However, in some cases, that is not possible and so in those circumstances, Employers must appeal to the hearts and minds of employees if there is any chance of influencing their views when it comes to choosing whether to strike, or not.

British Airways High Court Ruling

May 2010

Andy Cook, CEO of employee relations advisory firm, Marshall-James Global Solutions has been commenting widely on the BA vs. UNITE story with Bloomberg, BBC News, ITN, BBC Radio 5 Live and various other broadcasting stations. If you would like to speak with Andy regarding the industrial relations angle please call Parm Evans on 07501 462045

London, 18th May 2010 - Following the High Court’s decision to grant British Airways an injunction to halt the Cabin Crew strike today; it is confirmed that the strike will now not go ahead. Andy Cook, Chief Executive of Industrial Relations advisors Marshall-James says, "UNITE have once again suffered a defeat at the High Court for not following the correct balloting procedures. This is embarrassing for them and is sure to anger union members who look to their union to represent their best interests. This injunction only means a postponement of any action, but it does mean that momentum will inevitably be lost. These mistakes must be costly for Unite and its members".

I am sure we will see Unite announce more action as everyone involved in this strike – BA Management, Unite and the Cabin Crew are showing no signs of compromise. We are seeing brinkmanship at its most extreme."

"It seems utterly amazing that a prestigious British company that touches so many people across the world has ended up in this position." Any negotiation where either or both sides are backed into a corner is a disaster as it means someone will have to lose face in order to make a break through.

"The company realise that they are now addressing a history of past management’s reluctance to tackle the Union and its power. If they give in now, they will be faced with this same situation again in a few years time."

"Both sides need to find a way to build trust so the future of the airline is secured. The travelling public will not endure much more disruption to travel plans."

The British Airways Dispute

April 2010

Andy Cook, CEO, of Employee Relations Advisory Firm, Marshall-James, warns that the Industrial Action at British Airways is just the start of an increasingly bitter dispute at BA.

As further controversy strikes with politicians and the PM condemning the walk out of up to 1200 staff this weekend, Andy Cook of Marshall-James, says employee relations are absolutely paramount in order for BA and UNITE to reach an amicable deal. "The issue here is that there is a real power struggle emerging between the Union and senior heads at BA and we are in danger of seeing individuals within the union using the strike for their own ends to enhance their profile within UNITE, in time for the controversial election of General Secretary".

"To add to the complexity of the situation, cabin crew are generally a very difficult group to communicate with as they are geographically spread across the country and do not always have day to day contact with their line manager. This lack of engagement with bosses contributes to what is currently surfacing with employees lagging behind in terms of sharing the pain of change and rationalisation along with other colleagues inside the Airline.

Our experience of disputes in the airline industry has shown that a small group of militants can often dictate the majority view and unless employee relations are managed and well communicated the dispute will gain momentum and become increasingly difficult to resolve as it progresses".

If you would like to speak with Andy Cook for expert commentary on the industrial action announced by British Airways, or the issues surrounding employee relations, please call Parm Evans on 07501 462045 or email parm.evans@btinternet.com.

Where next for British Airways?

February 2010

Andy Cook, CEO of employee relations advisory firm, Marshall-James Global Solutions has been commenting widely on the BA vs. UNITE story with Bloomberg, BBC News, ITN and various other broadcasting stations. If you would like to speak with Andy regarding the industrial relations angle please call Parm Evans on 07501 462045.

 

London, 25th March 2010 - As the second wave of Industrial Action planned by the Unite members of BA Cabin Crew is due to start on Saturday 27th March for four days, a resolution still seems a long way off. 

Andy Cook, Chief Executive of Marshall-James, the specialist employee relations firm comments: "At some point, this dispute will have to be solved. However, it is looking difficult to see where the common ground is going to come from, particularly given the personalisation by the Union against BA Management. Both sides are claiming a victory in terms of the numbers who have stayed away or turned up for work and the number or services that have run". 

"We will never really know the true picture but one thing is for sure, at the heart of this are passengers who cannot take or complete their journeys and a large group of airport and BA employees who, whilst not on strike, will be directly affected by what is happening. BA claim they have no choice but to reduce costs and those reductions can only come from its payroll. The acute need to cut costs has now become critical for the airline's long term viability”.

“The pension fund deficit, volatile fuel costs, a reduction in premium passengers and competitor's ability to operate more cost effectively all add to a bleak financial picture. If you put into that mix a group of employees who are paid way in excess of equivalents on rival carriers and who are protected by restrictive practices making flexibility even more expensive, then it is easy to understand the dilemma".

"An important factor in all of this is that BA cannot afford to take their foot of the gas. Previous management regimes have not tackled this issue as times had been good and the money was coming in, on top of which they realised the extent of the union's muscle, which is what we are now seeing.

“Therefore, it was easier not to confront the cabin crew in those good times. That is not the case anymore and the current management has to deal with the crisis and if they do not get what they need from this dispute, then they know they will be back here in 12, 24 or 36 months time. I always advise clients that the best time to make change is when things are going well".

“The imminent budget and cap on public spending, particularly in the area of public sector pay, will cause further industrial unrest. The PCS union is striking over changes to civil servants redundancy payments which are generous in comparison to a majority of private sector payments. The government wants to reduce payments to civil servants on redundancy so it is not so expensive to make headcount reductions. For most of us, the proposed reduced payments will still seem generous, but the union and its members want to protect the current levels. Network Rail is facing similar difficulties”.