Talks aimed at resolving the dispute at the catering company that triggered flight chaos at Heathrow airport broke down today.
Gate Gourmet and the Transport and General Workers' Union (TGWU) broke off negotiations this afternoon after failing to reach agreement.
The head of Gate Gourmet has been locked in discussions with the TGWU general secretary, Tony Woodley, over the reinstatement of about 670 Gate Gourmet staff who were sacked last week. The employees were fired after they took unofficial action in protest at the influx of casual workers.
Mr Woodley said: "Talks have, indeed, broken down as a consequence of Gate Gourmet wanting to selectively re-employ those who had been sacked even though there is enough for everyone. The T&G remains in talks with British Airways. It is our belief that BA cannot do a Pontius Pilate on this issue. BA must now play a part in the resolution."
Before the breakdown of talks, the London Mayor, Ken Livingstone, in a statement to the TGWU, said: "This kind of macho management is the last thing we need and Gate Gourmet should see sense and reinstate all the sacked employees."
Gate Gourmet warned that, without a deal, the most likely outcome would be that the business was forced into administration. The company lost £25m at its Heathrow operation last year, and says changes in working practices are needed.
Some of the group's creditors are reportedly considering demanding repayment of £177m of debt and the company says it is holding talks with its bankers over its debt position.
The dispute at Gate Gourmet erupted last Wednesday. The following day 1,000 BA ground staff walked out in sympathy with those sacked at the catering firm, many of whom were relatives or friends.
The airline was forced to cancel all flights from mid-afternoon on Thursday, throwing Heathrow into chaos at one of the busiest periods of the year and stranding more than 100,000 passengers, many of them holidaymakers.
Overall, more than 700 flights were cancelled and the dispute is expected to cost the airline up to £40m. A number of other airlines also had some flights disrupted.
