BA crew lose appeal against staff cuts

British Airways cabin crew have lost their appeal against the cost-cutting proposals that triggered an industrial dispute with the airline. The Court of Appeal sided with BA's argument that a unilateral reduction in staffing numbers on long-haul routes did not breach contracts. Three judges at the court said an agreement between crew and the airline, which outlined higher staffing levels, was intended to be binding only in "honour" although it did include the threat of industrial action if it was breached. BA, which has endured 22 days of strikes by cabin crew following the onboard staff reductions, said: "We are pleased with today's Court of Appeal judgment, confirming that the modest changes we made to onboard crew numbers on flights from Heathrow 12 months ago were reasonable, did not breach crew contracts and can remain in place. The changes have made a substantial contribution toward easing the company's financial position, and our crew have accepted these working arrangements without difficulty." John Hendy QC, representing cabin crew backed by the Unite trade union, had argued that the reductions led to harder work and increased stress for crew. The cuts have generated annual savings of around £60m for BA. The ruling came as the 10,000 cabin crew affiliated with Unite prepare to vote on a peace offer that could end the year-long dispute. Bassa, Unite's main cabin crew branch, has left open the option of further industrial action if the latest proposal is rejected in a consultative ballot. The poll has yet to open because Unite is still working through the ramifications of BA's demand that the union drops all legal action related to the dispute. Brendan Barber, general secretary of the TUC, said yesterday that he was "hopeful" that the offer might form the basis for a settlement. The offer sets out a roadmap for the full reinstatement of discounted BA travel for the estimated 6,700 staff who took part in strikes this year, with another clause allowing the conciliation service, Acas, to arbitrate disciplinary cases. However, the peace deal does not repeal the staffing reductions that are at the root of the dispute. BA also confirmed an ongoing recovery in passenger numbers yesterday as it reported a 3.9% increase in traffic during October, including a 4.6% increase in customers for its premium cabins. BA carried 187,000 more passengers in October compared with the same period last year, flying nearly 3 million people, with the biggest increase occurring on domestic and European routes. Last week BA confirmed a return to profit for the first time in two years when it posted a first-half pre-tax profit of £158m.