The Unite union has claimed that BA plans to fire the vast majority of its workforce and rehire them on reduced pay and worse terms. BA informed unions last month that it was holding a consultation on as many as 12,000 job cuts. The notice under section 188 of the Trade Union Act means workers could be made redundant as soon as 15 June. Relations between the company’s owner, IAG, and the unions have broken down. BA’s boss, Alex Cruz, wrote a letter to staff on Friday criticising the Unite and the GMB unions for failing to attend consultation meetings to discuss the plans. Balpa, the pilots’ union, had engaged in consultations, the airline said. The unions say they are unable to negotiate with the airline on major job cuts and changes to working conditions while workers are furloughed, as meetings of large groups of people are difficult. Both Unite and GMB are understood to be considering legal action against BA on the basis that a meaningful consultation is impossible during lockdown.<br/>
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Qantas has lost a bid to use the jobkeeper wage subsidy to soak up a larger portion of its wages bill by topping up a worker’s pay on a monthly – rather than fortnightly – basis. The Fair Work Commission ruled on Friday it was unreasonable for Qantas to pay a manager just $3,000 a month – the level of the jobkeeper subsidy – while also gaining the benefit of his labour. Instead, the airline has been directed to top up the worker’s pay to $1,500 every fortnight, which would prevent it using the subsidy in a fortnight work was not performed to pay for weeks it was, ending a bid to capture hundreds of dollars more of the subsidy. The Australian Services Union seized on the decision to argue that hundreds of workers at the airline have been underpaid but the company has not conceded the point, arguing it is “at odds” with jobkeeper rules and has no wider application. In April the ASU had complained to Qantas that it was inappropriate to use the jobkeeper payment for one fortnight to pay for penalty rates accrued in the preceding fortnight. In a dispute taken to the commission, planning and engagement manager Mathew Mazzitelli argued he had been shortchanged because he is paid monthly. Story has more details.<br/>
China's aviation regulator may make it difficult for Hong Kong's Cathay Pacific Airways to merge regional arm Cathay Dragon into its main brand because of infractions during last year's pro-democracy protests, two sources said. The airline is looking to cut costs, streamline marketing and consolidate pilot contracts around Cathay Pacific and low-cost arm HK Express, the sources said on condition of anonymity. Singapore Airlines is doing the same with regional arm SilkAir and budget arm Scoot. But the Civil Aviation Administration of China (CAAC) would view such a move as an expansion and could block Cathay from keeping access to 20 mainland routes flown only by Dragon. The Cathay Pacific brand flies only to Beijing and Shanghai, while Dragon destinations include smaller cities like Fuzhou and Nanjing. China's aviation regulator stepped up inspections of Cathay planes last fall after warning the airline that staff participating in anti-government protests in Hong Kong would no longer be allowed to fly to mainland destinations or even in Chinese airspace. During that period, Cathay's CE resigned and the brand received enough demerit points for minor infractions under the strict CAAC system that the regulator can deny an application to add mainland destinations and aircraft, including Dragon's, three sources said. The six demerits received, according to two of the sources, mean it could take a year from the date of the most recent one, near the end of last year, to be allowed to expand, CAAC demerit rules posted online say.<br/>
Fiji Airways said Monday it would cut 51% of its staff permanently as it negotiates with lenders and aircraft lessors for payment deferrals and seeks to arrange more debt financing due to the pandemic-driven downturn. "The sad reality of prolonged flight suspensions means that we simply do not have work for a large segment of our workforce now, and for the foreseeable future," Fiji Airways Chief Executive Andre Viljoen said. The airline said the staff cuts would affect 758 employees, including 78 expatriate pilots and eight expatriate executives. Remaining staff will have their salaries cut by 20% permanently effective June 1, and the airline will extend flying cuts to August, the carrier said. Viljoen said the measures would help ensure the survival of the Fijian airline, which is a backbone of the island nation's tourism industry. "Many large and respected airlines around the world are collapsing as a consequence of this unprecedented crisis," he said. "However, we will do everything within our power to ensure that Fiji Airways does not suffer the same fate."<br/>