Essay on British Airways Labor Dispute

2102 Words9 Pages
1. Introduction

Since the 1980s the situation in the civil aviation industry has changed dramatically, and although the government still retains some form of in-direct control over the aviation sector and the ‘former’ national airlines in specific, issues related to economization and efficiency of the business enterprise take primacy in dictating strategic and operational decisions of the airline operators. This shift in the approach to the regulation of the aviation sector around the globe has also greatly influenced issues related to workforce organization in this industry, especially in the Western world.

In this report, the shift in the approach to employee relations will be discussed based on the case of one of world’s biggest
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The opening of new markets within the EU exposed many national carriers to strong competition. This trend has been furthered by the continuous liberalization of the global aviation industry and specifically the recent OpenSkies agreement between EU and the US which allows the national carriers to arrange the Atlantic flights from the airports that are not airlines’ ports of origin. (BATA, 2010).

Latest developments on the British political scene create strong pressure on the costs of operations for all the British carriers. The recently proposed raised taxation will put a huge disadvantage on the British civil aviation industry. The new Government (2010) also introduced policy of blocking airport expansion in the South East of England (McGhie, 2010).

2.2 Economic factors

From the economic perspective there have been few main points of pressure on the strategy of British Airways. The 2008 global recession, the worst economic downturn since 1930s, continuous high unemployment rates, along with the fluctuation of the British Pound continue to negatively influence all businesses. Amidst the crisis, trade unions demanded greater government intervention to support employment levels. Yet, in order to preserve employment levels, collective agreements between UK social partners at organizational level set new standards of reduced working time (Eiroonline, 2010).

From the micro perspective

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