British Airways has been shamed into ditching controversial plans to fire and rehire thousands of workers.
The airline had threatened to axe its entire remaining workforce, and re-employ them on a hated new contract with big pay cuts and worse terms and conditions,
But BA chief executive Alex Cruz has now confirmed watered down proposals where staff would remain on their existing contracts, with “some amendments”.
However, those would still result in some permanent pay reductions, as well as other changes.
One MP branded even the new proposals “draconian”.
Many staff have been given a deadline of this Saturday to make up their minds.
The climbdown follows pressure from MPs, who branded BA a “national disgrace”, unions and the Daily Mirror, which has run a series of stores about the airline’s tactics and Willie Walsh, the former boss of BA owner IAG.
Yet the U-turn comes after staff have endured more than four months of agonising waits to hear what will happen.
Many workers, opposed to signing the new contract, have already quit.
Around 7,200 workers have left during July and August and Mr Cruz said he expected the number of job losses to reach 10,000.
That would leave BA’s workforce at around 30,000, many of whom are now being balloted on the new proposals.
Mr Cruz told the Commons Transport Committee: “We have reached agreement in principle which will mean there will be no need to issue new contracts.”
Instead, he said it was proposing to “make some amendments to existing contracts.”
Mr Cruz said one of the ballots included a maximum pay cut of 15%.
Sources at the Unite union said this applied to “legacy”cabin crew, who have been with the airline since 2010.
Other ballots cover engineers and check-in staff at Heathrow Airport.
The bulk of the remaining workforce are covered by the ballots, or agreements already completed.
Mr Cruz told MPs there were provisions for “having discussions about the restoration of pay in the future.”
He added: “There are some permanent measures and some temporary measures.”
The new proposals emerged on day 140 of a consultation.
Huw Merriman, the Tory chair the Transport Committee, said lifting the fire and rehire threat was “a very welcome development".
Mr Cruz stressed that, despite the resumption of some flights, “we are still fighting for our survival".
He added: “Last week we flew 187,000 passengers in and out of the UK.
“The same week the previous year we flew just under one million passengers.”
Mr Cruz feared the recovery could be “protracted".
He also used the hearing to call for a “waiver” on air passenger duty “for some years” to boost the sector.
The executive said he was paid £805,000 in pay and perks last year.
There was anger after Mr Walsh recently retired with an £883,000 bonus approved by shareholders.
It was part of a £3.2million package for last year, with the Irishman collecting more than £30million since 2011.
