Unions say prepared to continue BA talks

LONDON — Trade unions said they were prepared to continue talks on Wednesday with British Airways PLC over job cuts and reduced pay — despite the passing of a deadline set by the carrier to reach a deal.

The airline and unions representing flight attendants and ground staff have failed to agree on cost-cutting measures, including a pay freeze and more than 3,500 job losses.

British Airways said late Tuesday that the talks had ended, adding that it would comment “in due course.”

However, the GMB and Unite unions said they were prepared to continue negotiations on Wednesday to avert the threat of strike action over the busy summer months, adding that they had never agreed to a deadline to end the talks.

British Airways, which employs 40,000 people, is looking to cut 2,000 flight attendants and 1,500 ground workers after the global economic downturn crippled passenger demand.

The carrier reported a record loss of 375 million pounds ($595 million) for the year ending March 31, and Chief Executive Willie Walsh has been more openly pessimistic than his peers about the state of the airline industry.

Walsh called on employees to work for free for a month, warning in an email that the airline was “definitely at risk” if they heeded calls by unions to reject his call for voluntary pay cuts.

Some 7,000 staff responded to the plea, agreeing to take unpaid leave, work part-time or carry out unpaid work that the company said would save it up to 10 million pounds ($16 million).

But the UNITE union said that workers were bullied into volunteering, receiving intimidating e-mails from senior managers.

Walsh, who declared that he would not draw a salary for the month of July — 61,250 pounds (then $97,000) — defended the move earlier this week.

He said he made it clear to staff that he was in a privileged position, acknowledging that his own pledge to forgo a month’s salary would cause him “little pain.”

“What I was expecting people to do was stand back and ask themselves what they can do to help in a time of need, what they can do to make a difference,” he said at a conference at the London Business School.