strike

Canada Post Strike Begins

by on June 3, 2011

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Canada Post Strike Begins

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Chinese Truckers Strike For Third Day, Threatening China’s Exports

by on April 22, 2011

Huffington Post…

SHANGHAI – (Melanie Lee and Royston Chan) – Striking truck drivers protested for a third day on Friday in Shanghai’s main harbor district amid heavy police presence and signs the action has already started to curb exports from the world’s busiest container port. The strike is a very public demonstration of anger over rising consumer prices and fuel price increases in China. It comes as the government struggles to contain higher inflation, which hit 5.4 percent in March, fearful that rising prices could fuel protests like those that have rocked the Middle East. A crowd of up to 600 people milled about outside an office of a logistics company near the Baoshan Port, one of the city’s ports. Some threw rocks at trucks whose drivers had not joined in the strikes, breaking the windows of at least one truck. The strikers, many of them independent contractors who carry goods to and from the port, stopped work on Wednesday demanding the government do something about high fuel costs and what some called high fees charged by logistics firms, said the drivers, who clashed with police on Thursday. China is especially wary about threats to social stability following online calls for Middle East-inspired “Jasmine Revolution” protests and has detained dozens of dissidents, including renowned artist Ai Weiwei. As many as 50 police officers were at the area on Friday, and at least two people were arrested after throwing rocks at trucks. Plainclothes officers also briefly detained some foreign reporters and manhandled a Reuters photographer. The crowd thinned out after a policeman said authorities planned to meet representatives of the truck drivers on Monday for talks aimed at ending the strike. “Please disperse and go back,” he said through a megaphone to truckers who had gathered near a road junction. “We are already talking to your representatives. There will be an answer for you on Monday.” But two truck drivers told Reuters that they would continue their campaign for the government to offset the rising cost of fuel. “We are continuing our strike,” said a 38-year-old truck driver surnamed Liu. “There has been no response from the government or anybody else. There’s nothing we can do.” Workers organized the strike using word of mouth, said a driver. China’s tightly controlled state media has made no mention of the unrest, and the city’s government, which is working hard to turn glamorous Shanghai into a global financial hub to compete with Hong Kong and London, has denied knowledge of the strike. “We’re currently not aware of the situation,” a spokesman with the Shanghai city government said. He declined to be identified. EXPORTS SLOW Duncan Innes-Ker, China analyst at the Economist Intelligence Unit, said the strikes could inspire protests by workers in other transport sectors, given rising fuel prices. “There are strikes in the taxi driver industry on a regular basis in numerous cities across China,” he said. “These are happening and they will continue to happen, and if the oil price continues to rise they will get worse.” China said in early April it would lift retail gasoline and diesel prices by 5-5.5 percent to record highs. [ID:nSGE736009]. An official reached by telephone at Shanghai International Port (Group) Co, which runs the Shanghai port, told Reuters the strike “has not affected operations,” though would not comment further. But one executive said the action was already starting to affect the port’s operations, at least for exports. “The strike has delayed exports and many ships cannot take on a full load before leaving,” said Wei Yujun, assistant to the general manager at China Star Distribution Center (Shanghai) Co. “For example, if one ship carries 5,000 containers en route to Hong Kong and the U.S., now they can only carry 1,000 or 2,000 containers,” Wei said, adding that such containers typically carry goods such as textiles and machinery. Traders said that the strike had caused only minimal disruptions to refined copper flows. Waigaoqiao, together with two other bonded areas in Shanghai, hold about 80 percent of China’s bonded copper stocks. “There is more than enough stocks in the bonded warehouses to offset any short-term impact on supplies,” said Bonnie Liu, a Macquarie analyst based in Shanghai. Shanghai’s most active copper futures contract closed flat at 71,440 yuan at midday. FEW OPTIONS FOR WORKERS Chinese workers have few means of pressing for better wages. The government prohibits unions independent of the All-China Federation of Trade Unions, an umbrella organization run by the Communist Party. Historically, the ACFTU tries to prevent strikes. “The most basic issue isn’t simply that fuel prices are rising. It is that when fuel prices rise, the truck drivers don’t have an independent channel to express their interests,” said Li Qiang, executive director of China Labor Watch, told Reuters from New York. The unrest is occurring near at least one of the port’s five major working zones — Waigaoqiao, a massive free-trade zone and bonded storage warehouse. Shanghai overtook Singapore in 2010 to become the world’s busiest container port. The Shanghai port handled 29.05 million 20-foot equivalent units, or TEUs, in 2010 — 500,000 TEUs more than Singapore . Shanghai’s cargo throughput rose to about 650 million tons in 2010, remaining the world’s largest, up from 590 million tons in 2009. Situated in the middle of the 18,000 km-long Chinese coastline, the Shanghai port is managed by the publicly listed Shanghai International Port (Group) Co Ltd (600018.SS), which is 44.23 percent owned by the Shanghai Municipal Government. Last May, a burst of labor disputes disrupted production for many foreign automakers including Toyota and Honda, which laid bare the rising demands of China’s 150 million migrant workers and raised questions about the region’s future as a low-cost manufacturing base. (Additional reporting by Jason Subler, Jane Lee, Carlos Barria in Shanghai, Ben Blanchard, Sui-Lee Wee, Michael Martina, Niu Shuping in Beijing and Tan Ee Lyn in Hong Kong,; Writing by Ben Blanchard and Sui-Lee Wee; Editing by Don Durfee and Robert Birsel) Copyright 2011 Thomson Reuters. Click for Restrictions .

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Chinese Truckers Strike For Third Day, Threatening China’s Exports

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Japanese Yen Lower Against Majors as Earthquake Aftershocks Strike Japan

March 11, 2011

Japanese Yen Lower Against Majors as Earthquake Aftershocks Strike Japan

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Equatorial Resources Limited (ASX:EQX) 22km Of New Strike Potential Identified At Badondo Iron Project

January 27, 2011

Equatorial Resources Limited (ASX:EQX) 22km Of New Strike Potential Identified At Badondo Iron Project

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Video: Marseille’s Port Lockdown Sees Fuel Disruptions Worsen

October 25, 2010

Oct. 25 (Bloomberg) — Bloomberg’s Elliott Gotkine reports from Marseille on the strike against working conditions at the French city’s port, which is disrupting fuel supplies. The port of Marseille said the strike has left 73 vessels stranded including 37 tankers carrying crude, 19 with refined products and 10 with natural gas.

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The 10 Greatest Labor Strikes in American History: 24/7 Wall Street

September 6, 2010

The labor stoppage, commonly known as the strike, is a natural result of tension between labor and management. Management has always wanted work for as little compensation as possible. Labor has always wanted compensation for what it considers a fair day’s work. The gulf between the two has often caused violence and even assassination. Labor strife has led to some of the most sensational trials in America history, perhaps the best known is the trial of three Western Federation of Miners leaders who were accused of killing the former governor of Idaho in 1905. Labor strife has always been greatest at the point when industries have reached their peaks, enjoying great financial strength and employing large numbers of workers

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Strike at China Honda Plant Reflects Deepening Wage Conflicts With Workers

June 11, 2010

By Bloomberg News June 12 (Bloomberg) — Workers at a Honda Motor Co. parts maker in southern China remained off the job for a fourth day as conflicts over wages deepen at foreign-owned plants in the world’s biggest export economy. Honda Lock (Guangdong) Co. in Zhongshan halted production on June 9 after employees walked out demanding pay increases, the latest of several strikes at Honda suppliers in China in less than a month. Workers at Foshan Fengfu Autoparts Co. in Guangdong province, which supplies exhaust parts for Honda’s Accord, Fit and Odyssey, agreed June 10 to return to the plant. “The workers heard about the situation at the Foshan plant and the workers getting a raise,” said Liu Shengqi, one of the strike leaders. “We all work for the same company, so that creates a very depressing situation here.” Disruptions at overseas manufacturers including Honda and Taiwan’s Foxconn Technology Group reflect pressure for higher pay in China, where a shrinking pool of low-cost labor may boost consumption and inflation , according to Huang Yiping , former chief Asia economist at Citigroup Inc. Foxconn said this week it will double salaries for its lowest-paid workers. The striking employees at Honda Lock are demanding a 72 percent increase to 1,600 yuan ($234) a month and higher overtime wages, the company said on June 10. The company supplies key systems, door handles and sensors for Honda’s Chinese autoplants. About 1,200 of the 1,400 workers at the Honda Lock factory in Zhongshan striking as of June 10, according to Hirotoshi Sato , a spokesman for the Miyazaki-based supplier in Japan. Pay Raised Last month, Honda agreed to raise salaries 24 percent at another parts maker to end a walkout that shut production at all four of its Chinese assembly plants, the first time labor issues forced Honda to halt local output. “Manufacturers probably incorporated these risks when they started business in China and probably expected costs to rise,” said Yoshihiro Okumura , who helps manage the equivalent of $365 million at Chiba-gin Asset Management Co. in Tokyo. Yasuko Matsuura , a spokeswoman for the automaker in Japan, said today by phone that Honda’s car assembly in China hadn’t been affected by the strike as of yesterday. Zhu Linjie a Beijing-based spokesman for Honda, said he had “no further information” about the strike. Striking workers who had gathered at the factory gate to discuss their demands with management began leaving after no one from the company came out to speak with them. “They won’t respond to us, so what are we going to do?” said Liu, walking away from the site. “I think standing out here all day is pointless.” — John Liu . With assistance from Masaki Kondo in Tokyo and Wenxin Fan in Shanghai. Editors: Terje Langeland , Jim McDonald To contact the reporter on this story: Bloomberg News at jliu42@bloomberg.net

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Honda to Raise Wages for Striking Workers at Chinese Factory by 24 Percent

May 31, 2010

By Makiko Kitamura May 31 (Bloomberg) — Honda Motor Co. , Japan’s second- biggest automaker, will raise workers’ monthly wages after a parts factory strike shut down almost all Chinese production. The workers will receive a 24 percent pay increase to 1,910 yuan ($280 dollars) per month, the Tokyo-based company said in a faxed statement today. Most workers have accepted the offer, while talks continue with those who are unsatisfied, Honda said. Production at all four Honda car factories in the country will remain suspended through at least June 2, with plans beyond that date to be decided tomorrow, the company said in a separate statement. Production of manual transmissions at the parts plant resumed today. The maker of Accord and Civic cars shut down all four of its auto assembly plants in China last week after workers at the parts unit walked out, demanding a pay raise. The strike, the first to stop Honda ’s production in the country, may be reducing its output by as many as 3,000 vehicles daily, analysts said. “My guess is that it will take less than a week to get production back at full capacity once the strike is resolved,” Tianshu Xin , managing director at IHS Global Insight in Shanghai, said prior to the settlement announcement. Honda will likely add shifts to make up the lost production, he said. The carmaker shut two plants in Guangzhou, Guangdong province, on May 24 and factories in Guangzhou and Wuhan, Hubei province, on May 26 after 1,850 workers making transmissions and engine parts at Honda Auto Parts Manufacturing Co. in Foshan, Guangdong, went on strike May 17. Line Reopened A line making manual transmissions at the parts plant reopened today, Yasuko Matsuura , a spokeswoman for Honda, said by phone. Other production lines at the plant remained shut. The striking workers had demanded monthly pay be boosted to between 2,000 yuan ($293) and 2,500 yuan, Matsuura said May 27. Honda produces about 3,000 vehicles a day in China, according to Koji Endo , a Tokyo-based analyst at Advanced Research Japan. The affected factories, joint ventures between Honda and its Chinese partners, make models including the Accord sedan and Civic compact and have combined annual capacity of 650,000 units. China accounted for 17 percent of Honda’s global sales last year, and the brand ranked fifth in China by unit sales in April, according to J.D. Power & Associates. Honda may increase China sales 9 percent to 630,000 vehicles this year, Chief Executive Officer Takanobu Ito said last month. The parts factory, a wholly owned Honda subsidiary, started production in 2007 and makes transmissions for the Accord, City Odyssey and Fit models, according to the company. Production Capacity Honda plans to raise production capacity in China by 28 percent to 830,000 vehicles a year by the second half of 2012 and introduce two new models as car demand grows in the country, Ito said in Guangzhou on May 25. Auto sales in China may rise 17 percent to 16 million this year and annual demand may climb to more than 30 million, according to an official at the State Information Center. The strike is a sign that automakers can expect rising labor costs in China, according to Yasuhiro Matsumoto , an analyst at Shinsei Securities Co. in Tokyo. Trade unions and employers appear to be reporting a growing number of work stoppages in China, although there are no official numbers, according to the International Labor Organization in Beijing. “To enhance workers’ payrolls, production costs will rise,” said Tatsuya Mizuno , director at Mizuno Credit Advisory in Tokyo, adding Honda’s image in China may have been tarnished as a result of the strike. — Tian Ying , Liza Lin . Editors: Terje Langeland , Chad Thomas To contact Bloomberg News staff for this story: Makiko Kitamura in Tokyo at +81-3-3201-8482 or mkitamura1@bloomberg.net

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British Airways Cabin Crew Resume Strike After Talks Fail on Pay, Staffing

May 29, 2010

By Steve Rothwell May 30 (Bloomberg) — British Airways Plc cabin crew resumed their strike following the failure of talks over pay and staffing levels, grounding flights for as many as 22,000 people today during one of the U.K.’s busiest weekends for air travel. Europe’s third-biggest carrier aims to operate at least 70 percent of long-haul services from its main base at London’s Heathrow airport, compared with 60 percent during last week’s walkout, plus 55 percent of European routes, up from 50 percent. British Airways is increasing services during the five-day stoppage after what it says is an increase in the number of flight attendants reporting for duty. The Unite union says the strike is “solid” and that members might be balloted on action beyond this week’s walkout and another scheduled for June 5. “It’s an uncomfortable and unsatisfactory situation,” said Jonathan Wober , an analyst at Societe Generale SA in London with a “hold” recommendation on the stock. “My guess is that having come this far BA will stick to their guns.” Talks between Chief Executive Officer Willie Walsh and the Unite leadership ended without an agreement, the Advisory, Conciliation and Arbitration Service said on May 28. Britain’s state mediator is speaking to both sides to arrange further negotiations to resolve the dispute, spokeswoman Clare Carter said in an interview yesterday. “While we are pressing for more talks to be held as urgently as possible, there are none yet scheduled,” Pauline Doyle , a spokeswoman for Unite, said in an e-mailed statement. No negotiations took place yesterday, Unite said. Cost Cuts The carrier is aiming to save as much as 160 million pounds ($231 million) a year within 10 years by hiring any new cabin crew on less generous wage deals, Chief Financial Officer Keith Williams told investors on May 21. British Airways fell 1.4 percent to 201.2 pence in London on May 28, valuing the company at 2.3 billion pounds ($3.3 billion). The stock has lost 4.5 percent since Feb. 22, when Unite said members had voted to strike, versus an 11 percent drop in the eight-member Bloomberg EMEA Airlines Index . The London-based carrier may add more flights to its already expanded schedule as more employees return to work, spokesman Tony Cane said on May 28. This weekend is one of the U.K.’s busiest for air travel, with millions of Britons taking a three-day break because of tomorrow’s national holiday. The two sides have been discussing changes to staffing levels and future pay grades for more than a year. The current dispute flared up in November, when Walsh cut crew numbers on long-haul flights without the union’s approval. Gatwick, London City Last week’s five-day stoppage forced British Airways to cancel flights for more than 25,000 people a day, according to the company. Of 333 services originally scheduled to operate on Friday, the carrier grounded 121, including 20 long-haul services to destinations, Unite said. The carrier said it operated a “a large majority” of flights yesterday, without giving numbers. Services from London Gatwick, the U.K.’s second-busiest airport and a hub for holiday flights, are operating as normal, with cabin crew having “ignored” the strike call, British Airways says. London City airport is also operating normally. Unite says it will halt the strike if Walsh restores travel perks to staff who walked out during two initial stoppages spanning seven days in March and agrees to discuss the suspension of workers during the action. Derek Simpson , the union’s joint general secretary, said in a May 26 interview that a ballot on continuing the strikes may be necessary to protect against British Airways using a legal loophole to fire workers. He predicted that Walsh will “break” before Unite does. To contact the reporter on this story: Steven Rothwell in London at srothwell@bloomberg.net

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British Airways Scraps Flights a Second Day as Dispute With Crews Drags On

May 25, 2010

By Steven Rothwell May 25 (Bloomberg) — British Airways Plc scrapped flights for about 25,000 people for a second day, with no sign of a return to talks between the airline and the union representing cabin-crew workers over the wage bill and staffing levels. The company’s flight attendants walked out yesterday, the start of a third round of strikes, after negotiations between Chief Executive Officer Willie Walsh and the Unite union broke down at the weekend. No formal discussions have been held since then, even though both sides say they’re prepared to meet. The walkout leaves 40 percent of long-haul services from the company’s hub at London Heathrow, Europe’s busiest airport, grounded. Two strikes over seven days in March cost British Airways 43 million pounds ($62 million), contributing to a 425 million-pound fiscal-year loss that was the carrier’s biggest since it first sold shares to investors in 1987. “I don’t expect BA to be deflected from its aim, which is to push through the cost-reduction plan and the right-sizing of the business,” said Stephen Furlong , an analyst at Davy Stockbrokers in Dublin with an “outperform” rating on the London-based company. “It’s going to be very focused on that.” Shares Fall British Airways was trading down 4.1 percent at 182.4 pence as of 10:25 a.m. in London. The stock has dropped 2.4 percent this year, valuing Europe’s third-biggest airline at 2.11 billion pounds. This week’s stoppage will run through May 28 and is to be followed by further five-day strikes starting on May 30 and June 7, Unite says. The airline took out advertisements in U.K. newspapers including the Times today showing a departure board listing the 120 destinations that the carrier flew to yesterday. “Unite wants to ground British Airways. It won’t,” the ad says. “While this strike means we may have to reduce the number of services each, we will fly the majority of customers to where they were booked to go.” Unite has said the most recent proposal from Walsh on crew complements and other savings could form the basis for a deal, leaving as the main sticking points demands that the CEO also reinstate travel benefits for strikers and take back workers dismissed or suspended during the industrial action. “We want to get some sense back into negotiations,” Brian Boyd, Unite’s national officer for aviation, said in an interview on a picket line near Heathrow yesterday. “Willie Walsh has to make sure he is being seen to compromise.” ACAS Role The disciplinary issue might be resolved through the involvement of the Advisory, Conciliation and Arbitration Service, the U.K.’s state-sponsored mediator, which could ensure an “impartial process,” Boyd said. Talks at ACAS’s London base on May 22 were disrupted by people who the mediator said may have been delegates at a nearby Socialist Worker Party conference. The next day, hours before the strike was due to begin, Unite leader Tony Woodley said he’d suspend the strike if Walsh agreed to reinstate travel perks. British Airways is “open to talks,” spokesman Michael Johnson said in an interview. “Our commitment at the moment is to ensure that our contingency plans are in place.” The carrier will today operate about 60 percent of long- haul services from Heathrow plus 50 percent of European services, Johnson said. Routes from the capital’s Gatwick and City terminals aren’t affected. All short-haul destinations were served with at least one flight yesterday, together with 85 percent of intercontinental routes, British Airways said in a statement. Strike Losses This week’s walkouts, part of the first sequence of strikes at British Airways since 1997, could cost the company more than 100 million pounds, based on the March losses. That’s equal to more than 40 percent of the 230 million-pound operating profit analysts say the carrier will earn this year. Under the strike timetable, British Airways is seeking to fly passengers who have bought tickets using planes staffed by non-striking workers and people from other parts of the company. Walsh said on May 21 that volunteers have now been trained to operate the company’s Boeing Co. 747 aircraft, having helped crew the 777 fleet during the March walkouts. Leased Planes Walsh is also using eight aircraft, complete with crews, rented from charter companies, something that’s becoming harder as the industry nears the peak summer season, Derocles said. British Airways has also rebooked some of the 30 percent of passengers it can’t accommodate with 53 carriers including allies American Airlines and Iberia Lineas Aereas de Espana SA and rival Emirates. Walsh says the British Airlines Stewards and Stewardesses Association branch of Unite “is not serious” in trying to reach an agreement. The executive said in a statement May 23 that Woodley had lost control of that part of the union. British Airways and Unite have been discussing changes to staffing levels and future pay grades since February last year. The current dispute flared up in November, when Walsh cut crew numbers on long-haul flights without the union’s approval. To contact the reporter on this story: Steven Rothwell in London at srothwell@bloomberg.net

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British Airways Scraps Flights a Second Day as Dispute With Crew Drags On

May 24, 2010

By Steven Rothwell May 25 (Bloomberg) — British Airways Plc scrapped flights for about 25,000 people for a second day, with no sign of a return to talks between the airline and the union representing cabin-crew workers over the wage bill and staffing levels. The London-based company’s flight attendants walked out yesterday, the start of a third round of strikes, after negotiations between Chief Executive Officer Willie Walsh and the Unite union broke down at the weekend. No formal discussions have been held since then, even though both sides say they’re prepared to meet. The walkout leaves 40 percent of long-haul services from the company’s hub at London Heathrow, Europe’s busiest airport, grounded. Two strikes over seven days in March cost British Airways 43 million pounds ($62 million), contributing to a 425 million-pound fiscal-year loss that was the carrier’s biggest since it first sold shares to investors in 1987. “I don’t expect BA to be deflected from its aim, which is to push through the cost-reduction plan and the right-sizing of the business,” said Stephen Furlong , an analyst at Davy Stockbrokers in Dublin with an “outperform” rating on the stock. “The company is going to be very focused on doing that.” British Airways rose 0.9 percent to 190.2 pence yesterday in London trading. The stock has advanced 1.8 percent this year, valuing Europe’s third-biggest airline at 2.19 billion pounds. This week’s stoppage will ground flights for about 25,000 passengers a day through May 28 and is to be followed by further five-day strikes starting on May 30 and June 7, Unite says. Obstacles to Deal Unite has said the most recent proposal from Walsh on crew complements and other savings could form the basis for a deal, leaving as the main sticking points demands that the CEO also reinstate travel benefits for strikers and take back workers dismissed or suspended during the industrial action. “We want to get some sense back into negotiations,” Brian Boyd, Unite’s national officer for aviation, said in an interview on a picket line near Heathrow yesterday. “Willie Walsh has to make sure he is being seen to compromise.” The disciplinary issue might be resolved through the involvement of the Advisory, Conciliation and Arbitration Service, the U.K.’s state-sponsored mediator, which could ensure an “impartial process,” Boyd said. Talks at ACAS’s London base on May 22 were disrupted by people who the mediator said may have been delegates at a nearby Socialist Worker Party conference. The next day, hours before the strike was due to begin, Unite leader Tony Woodley said he’d suspend the strike if Walsh agreed to reinstate travel perks. Reduced Service British Airways is “open to talks,” spokesman Michael Johnson said in an interview. “Our commitment at the moment is to ensure that our contingency plans are in place.” The carrier will today operate about 60 percent of long- haul services from Heathrow plus 50 percent of European services, Johnson said. Routes from the capital’s Gatwick and City terminals aren’t affected. All short-haul destinations were served with at least one flight yesterday, together with 85 percent of intercontinental routes, British Airways said in a statement. This week’s walkouts, part of the first sequence of strikes at British Airways since 1997, could cost the company more than 100 million pounds, based on the March losses. That’s equal to more than 40 percent of the 230 million-pound operating profit analysts say the carrier will earn this year. Rented Aircraft Under the strike timetable, British Airways is seeking to fly passengers who have bought tickets using planes staffed by non-striking workers and people from other parts of the company. Walsh said on May 21 that volunteers have now been trained to operate the company’s Boeing Co. 747 aircraft, having helped crew the 777 fleet during the March walkouts. Walsh is also using eight aircraft, complete with crews, rented from charter companies, something that’s becoming harder as the industry nears the peak summer season, Derocles said. British Airways has also rebooked some of the 30 percent of passengers it can’t accommodate with 53 carriers including allies American Airlines and Iberia Lineas Aereas de Espana SA and rival Emirates. Walsh says the British Airlines Stewards and Stewardesses Association branch of Unite “is not serious” in trying to reach an agreement. The executive said in a statement May 23 that Woodley had lost control of that part of the union. British Airways and Unite have been discussing changes to staffing levels and future pay grades since February last year. The current dispute flared up in November, when Walsh cut crew numbers on long-haul flights without the union’s approval. To contact the reporter on this story: Steven Rothwell in London at srothwell@bloomberg.net

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British Airways Scraps Flights a Second Day as Dispute With Crew Drags On

May 24, 2010

By Steven Rothwell May 25 (Bloomberg) — British Airways Plc scrapped flights for about 25,000 people for a second day, with no sign of a return to talks between the airline and the union representing cabin-crew workers over the wage bill and staffing levels. The London-based company’s flight attendants walked out yesterday, the start of a third round of strikes, after negotiations between Chief Executive Officer Willie Walsh and the Unite union broke down at the weekend. No formal discussions have been held since then, even though both sides say they’re prepared to meet. The walkout leaves 40 percent of long-haul services from the company’s hub at London Heathrow, Europe’s busiest airport, grounded. Two strikes over seven days in March cost British Airways 43 million pounds ($62 million), contributing to a 425 million-pound fiscal-year loss that was the carrier’s biggest since it first sold shares to investors in 1987. “I don’t expect BA to be deflected from its aim, which is to push through the cost-reduction plan and the right-sizing of the business,” said Stephen Furlong , an analyst at Davy Stockbrokers in Dublin with an “outperform” rating on the stock. “The company is going to be very focused on doing that.” British Airways rose 0.9 percent to 190.2 pence yesterday in London trading. The stock has advanced 1.8 percent this year, valuing Europe’s third-biggest airline at 2.19 billion pounds. This week’s stoppage will ground flights for about 25,000 passengers a day through May 28 and is to be followed by further five-day strikes starting on May 30 and June 7, Unite says. Obstacles to Deal Unite has said the most recent proposal from Walsh on crew complements and other savings could form the basis for a deal, leaving as the main sticking points demands that the CEO also reinstate travel benefits for strikers and take back workers dismissed or suspended during the industrial action. “We want to get some sense back into negotiations,” Brian Boyd, Unite’s national officer for aviation, said in an interview on a picket line near Heathrow yesterday. “Willie Walsh has to make sure he is being seen to compromise.” The disciplinary issue might be resolved through the involvement of the Advisory, Conciliation and Arbitration Service, the U.K.’s state-sponsored mediator, which could ensure an “impartial process,” Boyd said. Talks at ACAS’s London base on May 22 were disrupted by people who the mediator said may have been delegates at a nearby Socialist Worker Party conference. The next day, hours before the strike was due to begin, Unite leader Tony Woodley said he’d suspend the strike if Walsh agreed to reinstate travel perks. Reduced Service British Airways is “open to talks,” spokesman Michael Johnson said in an interview. “Our commitment at the moment is to ensure that our contingency plans are in place.” The carrier will today operate about 60 percent of long- haul services from Heathrow plus 50 percent of European services, Johnson said. Routes from the capital’s Gatwick and City terminals aren’t affected. All short-haul destinations were served with at least one flight yesterday, together with 85 percent of intercontinental routes, British Airways said in a statement. This week’s walkouts, part of the first sequence of strikes at British Airways since 1997, could cost the company more than 100 million pounds, based on the March losses. That’s equal to more than 40 percent of the 230 million-pound operating profit analysts say the carrier will earn this year. Rented Aircraft Under the strike timetable, British Airways is seeking to fly passengers who have bought tickets using planes staffed by non-striking workers and people from other parts of the company. Walsh said on May 21 that volunteers have now been trained to operate the company’s Boeing Co. 747 aircraft, having helped crew the 777 fleet during the March walkouts. Walsh is also using eight aircraft, complete with crews, rented from charter companies, something that’s becoming harder as the industry nears the peak summer season, Derocles said. British Airways has also rebooked some of the 30 percent of passengers it can’t accommodate with 53 carriers including allies American Airlines and Iberia Lineas Aereas de Espana SA and rival Emirates. Walsh says the British Airlines Stewards and Stewardesses Association branch of Unite “is not serious” in trying to reach an agreement. The executive said in a statement May 23 that Woodley had lost control of that part of the union. British Airways and Unite have been discussing changes to staffing levels and future pay grades since February last year. The current dispute flared up in November, when Walsh cut crew numbers on long-haul flights without the union’s approval. To contact the reporter on this story: Steven Rothwell in London at srothwell@bloomberg.net

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British Airways Stock Gains Show Investors Back Walsh’s `Hardball’ Stance

March 24, 2010

By Steven Rothwell March 24 (Bloomberg) — British Airways Plc Chief Executive Officer Willie Walsh may have little incentive to halt the resumption of a strike by cabin crew this weekend as costs are masked by a record 600 million-pound ($893 million) annual loss. With thousands of customers already lost to British Airways part-way through the seven-day walkout by 12,000 crew members and expenses from renting planes to provide a truncated service unlikely to be refunded, Walsh may have more to lose from giving ground to secure a swift deal, investors and analysts said. Costs from the airline’s first strike since 1997, which amounted to 21 million pounds in the first three days, will be dwarfed by the pretax loss for the year that ends on March 31. BA’s recent share performance has also eased pressure for a return to talks, with the stock up 17 percent since Feb. 22, when the Unite union revealed crews had backed a walkout. “Shareholders are supporting Walsh’s decision to play hardball,” said Greg Bennett , who helps oversee more than 1 billion pounds at Marlborough Fund Managers in Durban, South Africa, including stock of London-based BA. “If he succeeds in curtailing the union’s power that would be a very significant victory given the bloated nature of cabin-crew costs.” TUC Efforts Efforts to broker a return to negotiations by Trades Union Congress General Secretary Brendan Barber have so far failed, Liz Chinchen , a spokeswoman for the TUC, Britain’s umbrella organization for labor groups, said today in a phone interview. Barber is “keeping up a dialogue,” she said. Unite General Secretary Tony Woodley said March 22 he doesn’t expect Walsh to agree to discussions before the strike resumes for four days on March 27. BA says its open to a talks at any time. The airline aims to run all services from London’s Gatwick and City airports during the next walkout. About 70 percent of long-haul flights from Heathrow airport will also operate, together with up to 55 percent of European services. British Airways says it transported about 60 percent of passengers holding prior bookings during the first three days of the walkout that began on March 20. The carrier scrapped 18 out of 318 flights from its Heathrow hub today, or 6 percent of the schedule, according to its Website, after the strike left planes and staff out of position. Seven days of stoppages may cost BA 105 million pounds, including expenses from the rental of planes to boost services, according to Citigroup Inc. analyst Andrew Light . That’s more than the 63 million-pound annual saving Walsh was seeking in a deal, but less than one-fifth of BA’s pretax-loss estimate, which envisages a 1 billion pounds sales drop this fiscal year. ‘Almost Trivial’ “The cost of the strike in the context of the recession is almost trivial,” said Nick Cunningham , an analyst at Evolution Securities in London with a “ buy ” rating on the carrier’s stock. “At the bottom of the cycle BA isn’t making that much money anyway. Later on, when we’re into a full-blown recovery, a strike would be much more damaging, because they’ll be flying a higher level of volume.” Negotiations with Unite broke down after three days last week when Walsh presented a proposal he acknowledged was less attractive than previous offers, saying it had been modified to take account of expenses during the impending strike. BA is open to a “sensible settlement,” Walsh said in a statement yesterday. Woodley said yesterday he’s open to negotiations with the company “at any time.” An assessment of the cost of future industrial action can only be made after the event and BA’s full-year earnings estimate therefore remains “broadly unchanged,” the carrier said March 22 after markets closed. ‘One-Off Cost’ “BA seems resigned to facing the short-term losses in order to secure changes in working practices and cost savings in the longer term,” said Jonathan Wober , an analyst at Societe Generale SA in London with a “hold” rating on the stock. “Investors seem to be regarding this as a one-off cost, as long as the results that are realized are in management’s favor.” British Airways shares were trading little changed at 245.5 pence as of 1:34 p.m. in London and have gained 31 percent this year for a market value of 2.83 billion pounds. That’s the second-best performance on the eight-member Bloomberg EMEA Airlines Index , which has advanced 3 percent. Air France-KLM Group, Europe’s largest airline, has added 2.9 percent and Deutsche Lufthansa AG, the No. 2, is up 4.2 percent. AMR, Iberia Gains at BA have been spurred by preliminary approval from regulators for a pact with AMR Corp.’s American Airlines and a pension agreement with employees that should ease the way for a merger with Iberia Lineas Aereas de Espana SA of Spain. Iberia’s board is scheduled to meet tomorrow, with a definitive agreement to be signed by the end of this month. “The stock market is all about looking forward,” said Marlborough’s Bennett. “Combine cost cuts from cabin crew with what comes next with Iberia and American and that puts British Airways in a much better position.” BA’s “strong balance sheet” also stands it in good stead to take on Unite, Bennett said. Liquidity at Europe’s third- biggest airline “remains satisfactory,” with a cash balance of 1.6 billion pounds as of December, Moody’s Investors Service said in a note on March 18. The board of British Airways supports the strategy being pursued by Walsh, spokeswoman Dayna Ward said in an interview this week, citing comments from Chairman Martin Broughton . Unite’s Woodley had appealed for directors to step in and help resolve the dispute after talks collapsed on March 19. “I don’t expect them to negotiate between now and Saturday,” Woodley said March 22 after a rally near Heathrow. Lost Custom Still, a prolonged strike could pose a “competitive risk” for BA and hurt the carrier’s market share as customers switch to other airlines, said Yan Derocles , a Paris-based analyst at Oddo Securities with a “reduce” rating on the stock. Virgin Atlantic Airways Ltd. has reported increased bookings while BMI, the second-largest operator at Heathrow, will add 4,500 seats during the second phase of the strike. Justin Urquhart Stewart , who oversees about $3.3 billion at 7 Investment Management in London, said the dispute is still negative for BA and that the two sides should “get rid of the ego in the dispute” and return to talks. “They’ve got to find a face-saving way of getting out of this,” said Urquhart Stewart, who holds BA shares through an Exchange Traded Fund. “The cost structure at BA needs to be changed, but with everybody getting involved — the government and opposition included — the two sides are getting pushed into a position where they’ll find it very difficult to back down.” To contact the reporter on this story: Steven Rothwell in London at srothwell@bloomberg.net

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British Airways Stock Gains Show Investors Back Walsh’s `Hardball’ Stance

March 24, 2010

By Steven Rothwell March 24 (Bloomberg) — British Airways Plc Chief Executive Officer Willie Walsh may have little incentive to halt the resumption of a strike by cabin crew this weekend as costs are masked by a record 600 million-pound ($893 million) annual loss. With thousands of customers already lost to British Airways part-way through the seven-day walkout by 12,000 crew members and expenses from renting planes to provide a truncated service unlikely to be refunded, Walsh may have more to lose from giving ground to secure a swift deal, investors and analysts said. Costs from the airline’s first strike since 1997, which amounted to 21 million pounds in the first three days, will be dwarfed by the pretax loss for the year that ends on March 31. BA’s recent share performance has also eased pressure for a return to talks, with the stock up 17 percent since Feb. 22, when the Unite union revealed crews had backed a walkout. “Shareholders are supporting Walsh’s decision to play hardball,” said Greg Bennett , who helps oversee more than 1 billion pounds at Marlborough Fund Managers in Durban, South Africa, including stock of London-based BA. “If he succeeds in curtailing the union’s power that would be a very significant victory given the bloated nature of cabin-crew costs.” TUC Efforts Efforts to broker a return to negotiations by Trades Union Congress General Secretary Brendan Barber have so far failed, Liz Chinchen , a spokeswoman for the TUC, Britain’s umbrella organization for labor groups, said today in a phone interview. Barber is “keeping up a dialogue,” she said. Unite General Secretary Tony Woodley said March 22 he doesn’t expect Walsh to agree to discussions before the strike resumes for four days on March 27. BA says its open to a talks at any time. The airline aims to run all services from London’s Gatwick and City airports during the next walkout. About 70 percent of long-haul flights from Heathrow airport will also operate, together with up to 55 percent of European services. British Airways says it transported about 60 percent of passengers holding prior bookings during the first three days of the walkout that began on March 20. The carrier scrapped 18 out of 318 flights from its Heathrow hub today, or 6 percent of the schedule, according to its Website, after the strike left planes and staff out of position. Seven days of stoppages may cost BA 105 million pounds, including expenses from the rental of planes to boost services, according to Citigroup Inc. analyst Andrew Light . That’s more than the 63 million-pound annual saving Walsh was seeking in a deal, but less than one-fifth of BA’s pretax-loss estimate, which envisages a 1 billion pounds sales drop this fiscal year. ‘Almost Trivial’ “The cost of the strike in the context of the recession is almost trivial,” said Nick Cunningham , an analyst at Evolution Securities in London with a “ buy ” rating on the carrier’s stock. “At the bottom of the cycle BA isn’t making that much money anyway. Later on, when we’re into a full-blown recovery, a strike would be much more damaging, because they’ll be flying a higher level of volume.” Negotiations with Unite broke down after three days last week when Walsh presented a proposal he acknowledged was less attractive than previous offers, saying it had been modified to take account of expenses during the impending strike. BA is open to a “sensible settlement,” Walsh said in a statement yesterday. Woodley said yesterday he’s open to negotiations with the company “at any time.” An assessment of the cost of future industrial action can only be made after the event and BA’s full-year earnings estimate therefore remains “broadly unchanged,” the carrier said March 22 after markets closed. ‘One-Off Cost’ “BA seems resigned to facing the short-term losses in order to secure changes in working practices and cost savings in the longer term,” said Jonathan Wober , an analyst at Societe Generale SA in London with a “hold” rating on the stock. “Investors seem to be regarding this as a one-off cost, as long as the results that are realized are in management’s favor.” British Airways shares were trading little changed at 245.5 pence as of 1:34 p.m. in London and have gained 31 percent this year for a market value of 2.83 billion pounds. That’s the second-best performance on the eight-member Bloomberg EMEA Airlines Index , which has advanced 3 percent. Air France-KLM Group, Europe’s largest airline, has added 2.9 percent and Deutsche Lufthansa AG, the No. 2, is up 4.2 percent. AMR, Iberia Gains at BA have been spurred by preliminary approval from regulators for a pact with AMR Corp.’s American Airlines and a pension agreement with employees that should ease the way for a merger with Iberia Lineas Aereas de Espana SA of Spain. Iberia’s board is scheduled to meet tomorrow, with a definitive agreement to be signed by the end of this month. “The stock market is all about looking forward,” said Marlborough’s Bennett. “Combine cost cuts from cabin crew with what comes next with Iberia and American and that puts British Airways in a much better position.” BA’s “strong balance sheet” also stands it in good stead to take on Unite, Bennett said. Liquidity at Europe’s third- biggest airline “remains satisfactory,” with a cash balance of 1.6 billion pounds as of December, Moody’s Investors Service said in a note on March 18. The board of British Airways supports the strategy being pursued by Walsh, spokeswoman Dayna Ward said in an interview this week, citing comments from Chairman Martin Broughton . Unite’s Woodley had appealed for directors to step in and help resolve the dispute after talks collapsed on March 19. “I don’t expect them to negotiate between now and Saturday,” Woodley said March 22 after a rally near Heathrow. Lost Custom Still, a prolonged strike could pose a “competitive risk” for BA and hurt the carrier’s market share as customers switch to other airlines, said Yan Derocles , a Paris-based analyst at Oddo Securities with a “reduce” rating on the stock. Virgin Atlantic Airways Ltd. has reported increased bookings while BMI, the second-largest operator at Heathrow, will add 4,500 seats during the second phase of the strike. Justin Urquhart Stewart , who oversees about $3.3 billion at 7 Investment Management in London, said the dispute is still negative for BA and that the two sides should “get rid of the ego in the dispute” and return to talks. “They’ve got to find a face-saving way of getting out of this,” said Urquhart Stewart, who holds BA shares through an Exchange Traded Fund. “The cost structure at BA needs to be changed, but with everybody getting involved — the government and opposition included — the two sides are getting pushed into a position where they’ll find it very difficult to back down.” To contact the reporter on this story: Steven Rothwell in London at srothwell@bloomberg.net

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British Airways, Union Locked in Pay Dispute as Strike Enters Third Day

March 22, 2010

By Steven Rothwell March 22 (Bloomberg) — British Airways Plc and the union representing its 12,000 cabin crew are no closer to resolving a dispute on pay and staffing levels as a strike at the airline enters its third day. BA said it flew almost 100,000 passengers over the weekend even after grounding hundreds of flights at its Heathrow main hub. The Unite union that represents cabin crew said only a “small minority” of cabin crew broke the walkout. Unite General Secretary Tony Woodley , in an open letter to flight attendants, appealed to British Airways Chairman Martin Broughton to step in and help resolve the dispute. The weekend strike, the first for London-based BA since 1997, took place after Woodley’s talks with Chief Executive Officer Willie Walsh collapsed March 19. “I’d be very surprised if they hadn’t as a board talked about what would happen if things got rough and ready,” John Strickland , a director of aviation specialist JLS Consulting Ltd., said in a telephone interview yesterday. “People have spoken in the past that Walsh and Broughton are different animals, but there’s no reason they can’t be singing off the same hymn sheet.” Woodley will address striking cabin crew at a rally near London’s Heathrow airport today, the last of the three-day walkout. Unite plans a further four-day strike from March 27. British Airways is still “considering a response,” to his call to resume talks, spokeswoman Tehreem Ashraf said in a phone interview. Discount Carriers The negotiations broke down last week after three days when Walsh presented a proposal he acknowledged was less attractive than previous offers, saying it had been modified to take account of expenses during the strike. The plan was still “fair and sensible,” he said. The carrier is seeking to cut costs as competition on its short-haul European routes from discount carriers such as EasyJet Plc intensifies, and revenues from its more lucrative long-haul business traffic have been hurt by the recession. BA aims to fly about 65 percent of customers with bookings during the strike, helped by 6,000 volunteers from other parts of the company, including 1,000 stand-in flight attendants. More flight attendants turned up to work than anticipated during the weekend, allowing the carrier to reinstate flights to destinations such as Los Angeles and Mumbai, BA said. Loss Forecast The airline estimates that sales will fall by 1 billion pounds ($1.5 billion) this fiscal year ending March 31, and Chief Financial Officer Keith Williams predicted a pre-tax loss of about 600 million pounds in the company’s internal newspaper March 11. BA declined to give an estimate for the cost of the strike. “British Airways seems resigned to facing the short-term losses in order to secure changes in working practices and cost savings in the longer term,” said Jonathan Wober , an analyst at Societe Generale SA in London with a “hold” recommendation on the stock. “Shareholders seem to be regarding this as a one-off cost, as long as the results that are realized are in BA management’s favor.” British Airways has gained 17 percent on the London exchange since Feb. 22, when Unite first announced that its members had voted to strike. BA agreed in November to merge with Iberia Lineas Aereas de Espana SA . The stock has jumped 30 percent this year, and Iberia is up 37 percent in Madrid. The two carriers were the best performers in the Bloomberg European Airlines Index, which climbed 4 percent. BMI, the second-largest operator at Heathrow, said March 19 that it was adding a further 5,000 seats for the duration of the strike. Cost Savings BA’s stoppages may cost 105 million pounds, according to Citigroup Inc. analyst Andrew Light . That’s more than the 63 million-pound saving Walsh was seeking in a deal. Virgin Atlantic Airways Ltd., the carrier founded by U.K. billionaire Richard Branson , said last week that bookings have increased as a result of the strife at BA. “The flight is normally half full on Swissair but today it was chaos,” Stephen MacDonnell, who works at a property developer and flies regularly be between Geneva to London, said March 20 at Heathrow airport. Swiss International Airlines Ltd. is owned by Deutsche Lufthansa AG . “I’d say a lot of people have given up on BA and gone to other airlines.” To contact the reporter on this story: Steven Rothwell in London at srothwell@bloomberg.net

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British Airways Says Contingency Plans Working `Well’ in Cabin-Crew Strike

March 21, 2010

By Steven Rothwell and Beth Mellor March 21 (Bloomberg) — British Airways Plc entered the second day of a strike by 12,000 cabin crew attempting to force Chief Executive Officer Willie Walsh to drop cuts to pay and staffing levels after saying it made a “good start” at operating on the first day. All cabin crew reported for duty at Gatwick Airport yesterday and London City airport service operated as normal, the carrier said in an e-mailed statement yesterday. The Unite union said BA had managed to fly only a third of normal scheduled flights, with 85 planes grounded at Heathrow, and its main terminal there “a ghost town.” This weekend’s walkout, the first at London-based British Airways since 1997, will be followed by a four-day strike from March 27. The stoppages may cost more than the 63 million-pound ($95 million) saving Walsh is seeking in a labor deal. “We have to wait and see what the mood is like on both sides and who comes out of it better, if anyone comes out of it better at all,” said John Strickland , director of aviation specialist JLS Consulting Ltd. “At the minute we are in a situation where both sides are losing.” BA aims to fly about 65 percent of customers with bookings during the strike, helped by 6,000 volunteers from other parts of the company, including 1,000 stand-in flight attendants. About 49,000 passengers, representing 65 percent, had flown as of late afternoon yesterday, a spokeswoman for the carrier said. Union Support Unite said 80 percent of cabin crew were supporting the strike on the first day of the dispute, with only 10 flights leaving Heathrow between 12:20 p.m. and 2:30 p.m., compared with the normal 50. BA has scrapped about 50 percent of flights scheduled to carry about 30,000 people a day during the dispute, which began yesterday, and will concentrate on operating as many long-haul services as possible using rented planes and volunteer crews. “This is the first time in 10 years I haven’t flown with BA — I just couldn’t take the risk that they were going to be on strike” said Richard Bland, associate director of finance careers at a London business school, who was travelling to Heathrow to catch a Qantas Airways Ltd. flight to Hong Kong. “I invariably fly with BA — the strike was the only reason I changed my plans,” said Roger Jones, who had flown from Copenhagen to London, a journey he does every two to three weeks. “I will go back to BA as I’m an executive club member but I think it’s disastrous for the company really. People who are not loyal will switch pretty easily.” ‘No Difference’ BA has also hired 25 planes from other airlines and charter companies, together with pilots and crew, in an effort to operate about 30 percent of short-haul services from London’s Heathrow airport . “There was absolutely no difference at all,” said Gabauer Siegmund, a manager for Millennium Hotels, who flew on a business trip from Stuttgart to London on a jet2.com plane chartered by BA. “BA have kept us very well informed.” Talks with Unite union General Secretary Tony Woodley broke down after three days on March 19 when Walsh presented a proposal he acknowledged was less attractive than previous offers, saying it had been modified to take account of expenses from keeping planes flying during the strike. The plan was still “fair and sensible” and would be accepted if put to cabin crew, he said. Relations with Unite worsened in November, when Walsh used voluntary departures to cut crew levels without consulting the union. He’s also seeking to reduce pay for new recruits to help lower costs following a global slump in demand for travel. ‘Fit for Purpose’ British Airways will likely log a record pretax loss of 600 million pounds in the fiscal year to March 31, Chief Financial Officer Keith Williams said in the company’s internal newsletter on March 11. The seven-day walkout may cost 105 million pounds, according to Citigroup Inc. analyst Andrew Light . “The cupboard is bare as far as BA is concerned,” said Howard Wheeldon , a senior strategist at BGC Partners LP in London. “The airline has to change, and so far the staff aren’t changing enough. The outcome of this dispute will decide not only whether BA has a viable future but also whether in the eyes of the public it can ever be seen as truly fit for purpose.” BA , which agreed in November to merge with Iberia Lineas Aereas de Espana SA , has jumped 30 percent this year on the London exchange, and Iberia is up 37 percent in Madrid. The two carriers were the best performers in the Bloomberg European Airlines Index, which climbed 4 percent. Deutsche Lufthansa AG , whose pilots halted a four-day strike last month after their union agreed to resume talks on the first day of the walkout, is up 4.3 percent in Frankfurt this year. ‘Flag Flying’ Virgin Atlantic Airways Ltd., the carrier founded by U.K. billionaire Richard Branson , said this past week that bookings have increased as a result of the strife at BA, with traffic up 3 percent in December, the month cabin crew at its rival voted for a Christmas walkout that was later blocked by a U.K. court. Walsh said in advertisements in U.K. newspapers on March 19 that “a significant number” of cabin crew will reject the strike call. The ad, with the banner headline “We will keep our flag flying,” said Unite had misjudged the public mood. Allies of British Airways in the Oneworld alliance are also taking steps to help add capacity on services to the U.K. Finnair Oyj will fly larger aircraft on the Helsinki-London route, adding 20 seats per flight, spokesman Taneli Hassinen said in a phone interview. Iberia will also add bigger planes between Madrid and the U.K. capital, together with one extra flight, a spokeswoman said. AMR Corp. ’s American Airlines, the world’s second-largest carrier, is allowing passengers on Heathrow flights operated by it or BA through March 31 to make one change to tickets without penalty, or to request a full refund, spokesman Tim Smith said. ‘Hawks’ Unite’s Woodley said March 19 that BA’s management had ruined chances of a deal by refusing to resubmit its last pay offer. Walsh took the deal off the table on March 12 after the union announced the strike, and subsequently rejected an offer to suspend the walkout in return for the proposal being revived. “The hawks at BA who wanted a war have won the day,” Woodley said on exiting the talks at the Trades Union Congress headquarters in London. “They put an offer on the table that was worse than the one they took off. That makes it impossible for us to go back to our members and ballot them.” U.K. Prime Minister Gordon Brown said yesterday that the walkout should be called off and that the two sides should reconvene talks. Brown “believes that this strike is in no one’s interest and will cause unacceptable inconvenience,” according to a spokesman for the premier. Transport Secretary Andrew Adonis also urged BA and Unite to negotiate to find a settlement. Labour Party Conservative leader David Cameron said in a speech in London today that Brown hasn’t done enough to stop the strike, blaming the Labour Party’s dependence on union funding. Since he became PM in 2007, a quarter of donations have come from Unite. As the parties get ready to contest a general election in the coming weeks, Cameron is seeking to evoke in voters’ minds the difficulties the Labour government of the 1970s had in tackling the unions before the Conservatives took power under Margaret Thatcher in 1979. “This threatens the future of one of Britain’s greatest companies along with thousands of jobs,” Cameron said in a speech in London today. “But will the prime minister come out in support of those people who would cross the picket line? No – - because the Unite union is bankrolling the Labour Party.” The opposition launched a poster campaign today depicting Brown as an airline pilot, with the line “Gordon’s doing sweet BA. Is it because he’s taken 11 million pounds of Unite’s cash?” To contact the reporters on this story: Steven Rothwell in London at srothwell@bloomberg.net ; Beth Mellor at Heathrow airport via bmellor@bloomberg.net

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British Airways Cabin-Crew Strike Enters Second Day Over Pay, Job Dispute

March 20, 2010

By Steven Rothwell and Beth Mellor March 21 (Bloomberg) — British Airways Plc entered the second day of a strike by 12,000 cabin crew attempting to force Chief Executive Officer Willie Walsh to drop cuts to pay and staffing levels after saying it made a “good start” at operating on the first day. All cabin crew reported for duty at Gatwick Airport yesterday and London City airport service operated as normal, the carrier said in an e-mailed statement yesterday. The Unite union said BA had managed to fly only a third of normal scheduled flights, with 85 planes grounded at Heathrow, and its main terminal there “a ghost town.” This weekend’s walkout, the first at London-based British Airways since 1997, will be followed by a four-day strike from March 27. The stoppages may cost more than the 63 million-pound ($95 million) saving Walsh is seeking in a labor deal. “We have to wait and see what the mood is like on both sides and who comes out of it better, if anyone comes out of it better at all,” said John Strickland , director of aviation specialist JLS Consulting Ltd. “At the minute we are in a situation where both sides are losing.” BA aims to fly about 65 percent of customers with bookings during the strike, helped by 6,000 volunteers from other parts of the company, including 1,000 stand-in flight attendants. About 49,000 passengers, representing 65 percent, had flown as of late afternoon yesterday, a spokeswoman for the carrier said. Union Support Unite said 80 percent of cabin crew were supporting the strike on the first day of the dispute, with only 10 flights leaving Heathrow between 12:20 p.m. and 2:30 p.m., compared with the normal 50. BA has scrapped about 50 percent of flights scheduled to carry about 30,000 people a day during the dispute, which began yesterday, and will concentrate on operating as many long-haul services as possible using rented planes and volunteer crews. “This is the first time in 10 years I haven’t flown with BA — I just couldn’t take the risk that they were going to be on strike” said Richard Bland, associate director of finance careers at a London business school, who was travelling to Heathrow to catch a Qantas Airways Ltd. flight to Hong Kong. “I invariably fly with BA — the strike was the only reason I changed my plans,” said Roger Jones, who had flown from Copenhagen to London, a journey he does every two to three weeks. “I will go back to BA as I’m an executive club member but I think it’s disastrous for the company really. People who are not loyal will switch pretty easily.” ‘No Difference’ BA has also hired 25 planes from other airlines and charter companies, together with pilots and crew, in an effort to operate about 30 percent of short-haul services from London’s Heathrow airport . “There was absolutely no difference at all,” said Gabauer Siegmund, a manager for Millennium Hotels, who flew on a business trip from Stuttgart to London on a jet2.com plane chartered by BA. “BA have kept us very well informed.” Talks with Unite union General Secretary Tony Woodley broke down after three days on March 19 when Walsh presented a proposal he acknowledged was less attractive than previous offers, saying it had been modified to take account of expenses from keeping planes flying during the strike. The plan was still “fair and sensible” and would be accepted if put to cabin crew, he said. Relations with Unite worsened in November, when Walsh used voluntary departures to cut crew levels without consulting the union. He’s also seeking to reduce pay for new recruits to help lower costs following a global slump in demand for travel. ‘Fit for Purpose’ British Airways will likely log a record pretax loss of 600 million pounds in the fiscal year to March 31, Chief Financial Officer Keith Williams said in the company’s internal newsletter on March 11. The seven-day walkout may cost 105 million pounds, according to Citigroup Inc. analyst Andrew Light . “The cupboard is bare as far as BA is concerned,” said Howard Wheeldon , a senior strategist at BGC Partners LP in London. “The airline has to change, and so far the staff aren’t changing enough. The outcome of this dispute will decide not only whether BA has a viable future but also whether in the eyes of the public it can ever be seen as truly fit for purpose.” BA , which agreed in November to merge with Iberia Lineas Aereas de Espana SA , has jumped 30 percent this year on the London exchange, and Iberia is up 37 percent in Madrid. The two carriers were the best performers in the Bloomberg European Airlines Index, which climbed 4 percent. Deutsche Lufthansa AG , whose pilots halted a four-day strike last month after their union agreed to resume talks on the first day of the walkout, is up 4.3 percent in Frankfurt this year. ‘Flag Flying’ Virgin Atlantic Airways Ltd., the carrier founded by U.K. billionaire Richard Branson , said this past week that bookings have increased as a result of the strife at BA, with traffic up 3 percent in December, the month cabin crew at its rival voted for a Christmas walkout that was later blocked by a U.K. court. Walsh said in advertisements in U.K. newspapers on March 19 that “a significant number” of cabin crew will reject the strike call. The ad, with the banner headline “We will keep our flag flying,” said Unite had misjudged the public mood. Allies of British Airways in the Oneworld alliance are also taking steps to help add capacity on services to the U.K. Finnair Oyj will fly larger aircraft on the Helsinki-London route, adding 20 seats per flight, spokesman Taneli Hassinen said in a phone interview. Iberia will also add bigger planes between Madrid and the U.K. capital, together with one extra flight, a spokeswoman said. AMR Corp. ’s American Airlines, the world’s second-largest carrier, is allowing passengers on Heathrow flights operated by it or BA through March 31 to make one change to tickets without penalty, or to request a full refund, spokesman Tim Smith said. ‘Hawks’ Unite’s Woodley said March 19 that BA’s management had ruined chances of a deal by refusing to resubmit its last pay offer. Walsh took the deal off the table on March 12 after the union announced the strike, and subsequently rejected an offer to suspend the walkout in return for the proposal being revived. “The hawks at BA who wanted a war have won the day,” Woodley said on exiting the talks at the Trades Union Congress headquarters in London. “They put an offer on the table that was worse than the one they took off. That makes it impossible for us to go back to our members and ballot them.” U.K. Prime Minister Gordon Brown said yesterday that the walkout should be called off and that the two sides should reconvene talks. Brown “believes that this strike is in no one’s interest and will cause unacceptable inconvenience,” according to a spokesman for the premier. Transport Secretary Andrew Adonis also urged BA and Unite to negotiate to find a settlement. Labour Party Conservative leader David Cameron said in a speech in London today that Brown hasn’t done enough to stop the strike, blaming the Labour Party’s dependence on union funding. Since he became PM in 2007, a quarter of donations have come from Unite. As the parties get ready to contest a general election in the coming weeks, Cameron is seeking to evoke in voters’ minds the difficulties the Labour government of the 1970s had in tackling the unions before the Conservatives took power under Margaret Thatcher in 1979. “This threatens the future of one of Britain’s greatest companies along with thousands of jobs,” Cameron said in a speech in London today. “But will the prime minister come out in support of those people who would cross the picket line? No – - because the Unite union is bankrolling the Labour Party.” The opposition launched a poster campaign today depicting Brown as an airline pilot, with the line “Gordon’s doing sweet BA. Is it because he’s taken 11 million pounds of Unite’s cash?” To contact the reporters on this story: Steven Rothwell in London at srothwell@bloomberg.net ; Beth Mellor at Heathrow airport via bmellor@bloomberg.net

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British Airways Flight Attendants Strike in Bid to Halt Pay, Staffing Cuts

March 20, 2010

By Steven Rothwell and Beth Mellor March 20 (Bloomberg) — British Airways Plc ’s 12,000 cabin crew began a three-day strike to force Chief Executive Officer Willie Walsh to drop cuts to pay and staffing levels. BA has scrapped about 50 percent of flights scheduled to carry about 30,000 people a day during the dispute, which began at midnight, and will concentrate on operating as many long-haul services as possible using rented planes and volunteer crews. This weekend’s walkout, the first at London-based British Airways since 1997, will be followed by a four-day strike from March 27. The stoppages could cost more than the 63 million-pound ($95 million) saving Walsh is seeking in a labor deal. “The cupboard is bare as far as BA is concerned,” said Howard Wheeldon , a senior strategist at BGC Partners LP in London. “The airline has to change, and so far the staff aren’t changing enough. The outcome of this dispute will decide not only whether BA has a viable future but also whether in the eyes of the public it can ever be seen as truly fit for purpose.” Talks with Unite union General Secretary Tony Woodley broke down after three days yesterday when Walsh tabled a proposal he acknowledged was less attractive than previous offers, saying it had been modified to take account of expenses from keeping planes flying during the strike. The plan was still “fair and sensible” and would be accepted if put to cabin crew, he said. Relations with Unite worsened in November, when Walsh used voluntary departures to cut crew levels without consulting the union. He’s also seeking to reduce pay for new recruits to help lower costs following a global slump in demand for travel. Record Loss British Airways will likely log a record pretax loss of 600 million pounds in the fiscal year to March 31, Chief Financial Officer Keith Williams said in the company’s internal newsletter on March 11. The seven-day walkout may cost 105 million pounds, according to Citigroup Inc. analyst Andrew Light . BA , which agreed in November to merge with Iberia Lineas Aereas de Espana SA , has jumped 30 percent this year on the London exchange, and Iberia is up 37 percent in Madrid. The two carriers were the best performers in the Bloomberg European Airlines Index, which climbed 4 percent. Deutsche Lufthansa AG , whose pilots halted a four-day strike last month after their union agreed to resume talks on the first day of the walkout, is up 4.3 percent in Frankfurt this year. Virgin Atlantic Airways Ltd., the carrier founded by U.K. billionaire Richard Branson , said this week that bookings have increased as a result of the strife at BA, with traffic up 3 percent in December, the month cabin crew at its rival voted for a Christmas walkout that was later blocked by a U.K. court. ‘Keep Flying’ BA plans to fly about 65 percent of customers with bookings during the strike, helped by 6,000 volunteers from other parts of the company, including 1,000 stand-in flight attendants. Walsh said in advertisements in U.K. newspapers yesterday that “a significant number” of cabin crew will reject the strike call. The ad, with the banner headline “We will keep our flag flying,” says Unite has misjudged the public mood. The carrier has also hired 25 planes from other airlines and charter companies, together with pilots and crew, in an effort to operate about 30 percent of short-haul services from London’s Heathrow airport . About 60 percent of long-haul flights from Heathrow, Europe’s busiest airport, should operate as normal, together with more than half of European routes from London Gatwick. Inter- continental flights from Gatwick and services from London City, near the financial district, should be unaffected. Allies of British Airways in the Oneworld alliance are also taking steps to help add capacity on services to the U.K. Finnair, American Finnair Oyj will fly larger aircraft on the Helsinki-London route, adding 20 seats per flight, spokesman Taneli Hassinen said in a phone interview. Iberia will also add bigger planes between Madrid and the U.K. capital, together with one extra flight, a spokeswoman said. AMR Corp. ’s American Airlines, the world’s second-largest carrier, is allowing passengers on Heathrow flights operated by it or BA through March 31 to make one change to tickets without penalty, or to request a full refund, spokesman Tim Smith said. Unite’s Woodley said yesterday that BA’s management had ruined chances of a deal by refusing to resubmit its last pay offer. Walsh took the deal off the table on March 12 after the union announced the strike, and subsequently rejected an offer to suspend the walkout in return for the proposal being revived. “The hawks at BA who wanted a war have won the day,” Woodley said on exiting the talks at the Trades Union Congress headquarters in London. “They put an offer on the table that was worse than the one they took off. That makes it impossible for us to go back to our members and ballot them.” ‘Unacceptable Inconvenience’ U.K. Prime Minister Gordon Brown said yesterday that the walkout should be called off and that the two sides should reconvene talks. Brown “believes that this strike is in no one’s interest and will cause unacceptable inconvenience,” according to a spokesman for the premier. Transport Secretary Andrew Adonis also urged BA and Unite to negotiate to find a settlement. Conservative leader David Cameron will say in a speech in London today that Brown hasn’t done enough to stop the strike, blaming the Labour Party’s dependence on union funding. Since he became PM in 2007, a quarter of donations have come from Unite. To contact the reporters on this story: Steven Rothwell in London at srothwell@bloomberg.net ; Beth Mellor at Heathrow airport via bmellor@bloomberg.net

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British Airways Strike to Go Ahead March 20 as Talks Collapse, Union Says

March 19, 2010

By Christopher Jasper March 19 (Bloomberg) — British Airways Plc’s cabin crew union said a three-day strike will go ahead from midnight after talks collapsed. BA declined to resubmit a pay offer that would have caused the strike to be shelved and instead proposed a “worse” deal, Unite General Secretary Tony Woodley said.

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Another strike in Greece led from austerity measures

March 11, 2010

Another strike in Greece led from austerity measures

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Greek, Portuguese Workers Strike as Protests Over Austerity Measures Grow

March 4, 2010

By Maria Petrakis March 4 (Bloomberg) — Greek demonstrators took over the Finance Ministry building in central Athens, blocking streets in the city center, and Portuguese schools and hospitals were shut as unions stepped up protests against government deficit cuts. In Athens, about 200 members of the PAME union group, aligned with the Communist Party of Greece, occupied the six- story ministry building today while protesters took over the nearby General Accounting Office, according to a police spokeswoman. Another group blocked a central road in downtown Athens, snarling traffic. Greek Prime Minister George Papandreou yesterday unveiled 4.8 billion euros ($6.6 billion) of additional deficit cuts as he tries to convince European Union allies and investors he can tame the region’s biggest budget gap. EU officials praised the moves and Greek bonds gained on the measures, which include a 30 percent cut to three bonus-salary payments to civil servants. “The measures are grossly unfair,” Dimitris Bratis, the president of the Greek teaching federation , which will strike for 24 hours tomorrow, told NET TV today. “We’re being asked to pay for the crisis. Greek taxpayers are being asked to foot the bill again.” The main union for public workers, ADEDY, called a three- hour work stoppage for tomorrow and a protest rally in the city center that the country’s private-sector union group, representing 2 million Greek workers , will also join, according to spokesman Stathis Anestis. Most unions representing public- transport services also called a 24-hour strike tomorrow, affecting trams, rail and bus services in the Greek capital as well as the Athens subway. Portuguese Strikes Portugal’s public workers held a 24-hour strike today to protest a wage freeze that’s part of government efforts to convince the EU and investors that it can pare its own budget deficit to 8.3 percent of output from 9.3 percent last year. The Greek Finance Ministry building was draped with a banner urging Greeks to “rise up” against the budget measures and protesters on the roof of the building exhorted passersby to join a protest march by PAME scheduled for later today. The same group blockaded the Athens stock exchange headquarters last week, preventing staff from entering the building. ADEDY said it is considering rescheduling its March 16 24- hour strike, the third this year, to next week. The General Confederation of Workers of Greece’s executive met today to decide on new strike and protests. Papandreou’s package includes reductions in spending for education and an increase in value-added taxes, as well as cuts to the bonuses paid to civil servants for holidays and a pension freeze. The measures are due to be voted on tomorrow in parliament, where Papandreou has a 10-seat majority. The GSEVEE federation, which represents small businesses and craftsmen, said the measures are “neither fair nor effective.” “The attempt to fix the fiscal crisis underlines clearly the government’s desire to move the cost of its efforts to the real economy,” Nikos Skorinis , the secretary of GSEVEE, said in an e-mailed statement. To contact the reporter on this story: Maria Petrakis in Athens at mpetrakis@bloomberg.net

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Greek Unions Stage Second Strike This Month Over Government’s Budget Cuts

February 24, 2010

By Maria Petrakis Feb. 24 (Bloomberg) — Greece’s unions plan to shut down transportation, medical and educational facilities today in a second 24-hour strike aimed at resisting Prime Minister George Papandreou ’s drive to cut the European Union’s biggest budget deficit. Air-traffic controllers, customs and tax officials, bus and train drivers, doctors at state-run hospitals and school teachers are walking off the job for a one-day strike to protest government spending cuts that will freeze salaries and hiring and cut bonuses. Journalists are also joining the strike, creating a media blackout. “People on the street will send a strong message to the government but mainly to the European Union , the markets and our partners in Europe that people and their needs must be above the demands of markets,” Yiannis Panagopoulos, president of the private-sector union GSEE , told NET TV yesterday. “We didn’t create the crisis.” Half a million civil servants already held a 24-hour strike on Feb. 10. Today they’re joining forces with GSEE , which represents 2 million workers, after EU warnings that Papandreou’s government needs to bring in new taxes and make more spending cuts if it fails to rein in the largest budget gap of all 27 EU member states. Greek bonds have slumped, driving up borrowing costs, as investors fear that government plans outlined so far will fail to reduce the gap this year to 8.7 percent of GDP from 12.7 percent. Papandreou’s government needs to sell 53 billion euros ($72 billion) of debt this year, the equivalent of 20 percent of gross domestic product. Bailout Concern Greece’s fiscal woes have stoked concerns that it may need a bailout and helped spark a rout in global stocks . The premium that investors demand to buy Greek debt over comparable German bonds ballooned on Jan. 28 to the highest since 1998 amid worries that Papandreou’s deficit plan relied too much on one- off measures for revenue and not enough on expenditure cuts. “We haven’t yet seen anything of the fiscal contraction that Greece has to go through if it wants to avoid a sovereign default,” Fredrik Erixon , director of the Brussels-based European Centre for International Political Economy, said in a phone interview. Almost 500 international and domestic flights have been canceled today, a spokeswoman for Athens International Airport , Greece’s biggest, said by telephone. The Athens Metro, which carries 650,000 commuters to work each morning, won’t run nor will the capital’s trolleys and trams. Urban buses will operate only until 7:30 a.m. and after 10 p.m. Passenger ferries and other vessels will remain docked until the end of the strike. Protest Marches Rallies and protest marches are planned in Athens and other cities and towns. Yesterday, the PAME union group, aligned to the Communist Party of Greece, blockaded the Athens stock exchange headquarters, preventing staff from entering the building. The Athens benchmark general index fell 1.8 percent to 1,922.69 yesterday, bringing losses so far this year to 12 percent, the second-worst performance in western Europe. Greek government bonds extended their decline after Fitch Rating downgraded the country’s four largest banks, pushing the yield on the 10-year bond up 7 basis points to 6.49 percent at 6 p.m. in London. Ratings companies, which cut the country’s grades in December after Papandreou revealed the country’s budget shortfall was more than four times the EU limit, have warned the government’s three-year budget plan must be implemented to the letter. Slash Spending EU governments are looking for guarantees that Papandreou, elected in October, will slash spending before they spell out what help they may offer. Under proposals adopted by finance ministers from the 16 nations that share the euro, the Greek government will have to take additional measures to cut its deficit if it fails to satisfy the European Commission next month. These may include higher value-added tax, a levy on luxury goods, higher energy taxes and spending cuts, they said. German Chancellor Angela Merkel , in a speech in Hamburg on Feb. 22, said a solution to the Greek crisis is the “core element” in re-establishing confidence in the single currency. “The mistakes have to be dealt with at their roots,” Merkel said. “In the case of Greece, we need to do everything to support the Greek government, which of course has taken this path, in formulating a true consolidation program.” Greek Finance Minister George Papaconstantinou has resisted calls for deeper spending cuts and said Feb. 16 the government was “ahead of the target” set out in its deficit-reduction plan. Most Greeks support the measures outlined so far, which include an increase in the retirement age and a freeze on increases for public-sector workers, according to opinion polls. “New measures may be needed,” said George Mikonyiatis, 42, who has watched civil servants protesting cuts in their income rally outside the Finance Ministry for weeks from his camera shop in central Athens. “They need to be just. If you can prove the measures are just then the strikes won’t have mass support. They need to be targeted at those who aren’t paying their way.” To contact the reporters on this story: Maria Petrakis in Athens at mpetrakis@bloomberg.net ;

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Greece Strikes Paralyze Athens as Papandreou’s Deficit Drive Is Challenged

February 10, 2010

By Natalie Weeks and Maria Petrakis Feb. 10 (Bloomberg) — Prime Minister George Papandreou ’s drive to get Greece’s ballooning budget under control is being challenged in the streets today as striking labor unions shut down schools, hospitals and flights. Air-traffic controllers and civil-aviation workers are effectively closing down Greek airspace as part of the 24-hour work stoppage by ADEDY, the umbrella group representing about 600,000 civil servants. Some 483 international and domestic flights have been cancelled, a spokeswoman for Athens International Airport , Greece’s biggest, said by telephone. Protests against Papandreou’s plans to freeze wages and reduce benefits come after European Union leaders, set to meet at a summit in Brussels tomorrow, signaled they may aid the country if progress in cutting the deficit is made. Bonds have slumped in Greece and in the euro area’s southern edge as investors examine budget shortfalls across the 16-nation bloc. “The concern is whether the strike will be a one-off or the first of a long series of street demonstrations involving other parts of the economy,” said Giada Giani , an economist at Citigroup Global Markets in London. “We need to see a prolonged period of strikes before we know whether the government’s willingness will be affected.” ADEDY opposes Papandreou ’s program and plans to call out its workers again on Feb. 24, when the biggest private-sector group, GSEE, holds its own 24-hour strike. Today’s walkout, with rallies in Athens and other cities and towns, is organized labor’s first major challenge since the Oct. 4 election of Papandreou, a socialist whom unions backed in the vote. Union Threats “People are out expressing their rage,” said Yiannis Kelekis, 68, who said he gets a 470-euro ($646) monthly pension. “They are absolutely right. The people that caused this crisis are now asking for others to make sacrifices.” Protesters marched through the center of rainy Athens carrying signs that read “No to the speculators” and “Overturn the Growth and Stability Pact.” “Cutting public-sector salaries is an easy political choice,” Spyros Papaspyros , chairman of the ADEDY civil servants union, said this week. “Attacks that start on the public sector will lead to attacks on all.” The unions are contesting measures demanded by the EU and investors to reduce a deficit of 12.7 percent of gross domestic product last year to within the EU’s 3 percent limit in 2012. Greece’s fiscal woes have stoked concerns that it may need a bailout and helped spark a rout in global stocks . Market Selloff Spain and Portugal, also suffering from gaping deficits after the worst recession since World War II, have been sucked into a market selloff that has seen the euro fall to a nine- month low against the dollar on concern that swelling shortfalls will stifle Europe’s recovery. Moody’s Investors Service said today that Greece shouldn’t be grouped with Spain and Portugal and that Greece faces “material challenges.” “The Greek government’s plans are very ambitious, although if implemented exactly as promised, the rating could stabilize at A2,” according to the Moody’s report. “If the implementation falls just short of the execution promised by the Greek authorities, then we may adjust the rating to A3 in the coming months.” “However, if only partial implementation is achieved, then we may downgrade Greece’s rating to Baa1,” Moody’s said. Bonds Jump Greek, Spanish and Portuguese bonds jumped yesterday after the EU signaled it may aid Greece. The euro rose the most in more than five months and the Greek 10-year bond yield dropped the most since at least 1998. The premium investors demand to buy Greek debt over comparable German bonds ballooned on Jan. 28 to the highest since 1998 amid concern that Papandreou’s deficit plan relied too much on one-off measures for revenue and not enough on spending cuts. Greek 10-year yields fell 33 basis points to 6.06 percent. The Greek-German 10-year yield spread narrowed 36 basis points to 288 basis points. The benchmark Athens stock index rose 3.2 percent to 1,956.44 at 3:50 p.m. in Athens, spurred by a 5.8 percent gain in National Bank of Greece SA , the country’s largest lender. Olli Rehn , who today takes over as European economic affairs commissioner, said the EU may offer Greece “support in the broad sense of the word.” In Paris, after meeting with French President Nicolas Sarkozy , Papandreou said Greece was ready to take any measures to meet its deficit goals. Hiring Freeze Hours before the strike, Greek Finance Minister George Papaconstantinou reiterated a hiring freeze for civil servants. He also said the government will offer a tax amnesty on funds held abroad in a bid to boost revenue. While forbidden by law to take part, police, fireman and coast guard workers said they will also join the rallies. “This game of speculation is being played out at the expense of the worker,” said Yiannis Grivas, the head of the union of tax collectors, which held a 48-hour strike last week and will rally again on Feb. 17. Still, not all public workers are striking. More than 64 percent of 2,299 people polled in the two days after Papandreou announced additional deficit-cutting measures believe his government is moving in the right direction and the measures are necessary, according to a Kappa Research poll for To Vima newspaper on Feb. 7. “Why should I strike and lose 50 euros?” said Effie Strati, a childcare worker at a state-run nursery. She said all her colleagues will be at work. To contact the reporters on this story: Maria Petrakis in Athens at mpetrakis@bloomberg.net ; Natalie Weeks in Athens nweeks2@bloomberg.net .

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Greece Strikes Paralyze Athens as Papandreou’s Deficit Drive Is Challenged

February 10, 2010

By Natalie Weeks and Maria Petrakis Feb. 10 (Bloomberg) — Prime Minister George Papandreou ’s drive to get Greece’s ballooning budget under control is being challenged in the streets today as striking labor unions shut down schools, hospitals and flights. Air-traffic controllers and civil-aviation workers are effectively closing down Greek airspace as part of the 24-hour work stoppage by ADEDY, the umbrella group representing about 600,000 civil servants. Some 483 international and domestic flights have been cancelled, a spokeswoman for Athens International Airport , Greece’s biggest, said by telephone. Protests against Papandreou’s plans to freeze wages and reduce benefits come after European Union leaders, set to meet at a summit in Brussels tomorrow, signaled they may aid the country if progress in cutting the deficit is made. Bonds have slumped in Greece and in the euro area’s southern edge as investors examine budget shortfalls across the 16-nation bloc. “The concern is whether the strike will be a one-off or the first of a long series of street demonstrations involving other parts of the economy,” said Giada Giani , an economist at Citigroup Global Markets in London. “We need to see a prolonged period of strikes before we know whether the government’s willingness will be affected.” ADEDY opposes Papandreou ’s program and plans to call out its workers again on Feb. 24, when the biggest private-sector group, GSEE, holds its own 24-hour strike. Today’s walkout, with rallies in Athens and other cities and towns, is organized labor’s first major challenge since the Oct. 4 election of Papandreou, a socialist whom unions backed in the vote. Union Threats “People are out expressing their rage,” said Yiannis Kelekis, 68, who said he gets a 470-euro ($646) monthly pension. “They are absolutely right. The people that caused this crisis are now asking for others to make sacrifices.” Protesters marched through the center of rainy Athens carrying signs that read “No to the speculators” and “Overturn the Growth and Stability Pact.” “Cutting public-sector salaries is an easy political choice,” Spyros Papaspyros , chairman of the ADEDY civil servants union, said this week. “Attacks that start on the public sector will lead to attacks on all.” The unions are contesting measures demanded by the EU and investors to reduce a deficit of 12.7 percent of gross domestic product last year to within the EU’s 3 percent limit in 2012. Greece’s fiscal woes have stoked concerns that it may need a bailout and helped spark a rout in global stocks . Market Selloff Spain and Portugal, also suffering from gaping deficits after the worst recession since World War II, have been sucked into a market selloff that has seen the euro fall to a nine- month low against the dollar on concern that swelling shortfalls will stifle Europe’s recovery. Moody’s Investors Service said today that Greece shouldn’t be grouped with Spain and Portugal and that Greece faces “material challenges.” “The Greek government’s plans are very ambitious, although if implemented exactly as promised, the rating could stabilize at A2,” according to the Moody’s report. “If the implementation falls just short of the execution promised by the Greek authorities, then we may adjust the rating to A3 in the coming months.” “However, if only partial implementation is achieved, then we may downgrade Greece’s rating to Baa1,” Moody’s said. Bonds Jump Greek, Spanish and Portuguese bonds jumped yesterday after the EU signaled it may aid Greece. The euro rose the most in more than five months and the Greek 10-year bond yield dropped the most since at least 1998. The premium investors demand to buy Greek debt over comparable German bonds ballooned on Jan. 28 to the highest since 1998 amid concern that Papandreou’s deficit plan relied too much on one-off measures for revenue and not enough on spending cuts. Greek 10-year yields fell 33 basis points to 6.06 percent. The Greek-German 10-year yield spread narrowed 36 basis points to 288 basis points. The benchmark Athens stock index rose 3.2 percent to 1,956.44 at 3:50 p.m. in Athens, spurred by a 5.8 percent gain in National Bank of Greece SA , the country’s largest lender. Olli Rehn , who today takes over as European economic affairs commissioner, said the EU may offer Greece “support in the broad sense of the word.” In Paris, after meeting with French President Nicolas Sarkozy , Papandreou said Greece was ready to take any measures to meet its deficit goals. Hiring Freeze Hours before the strike, Greek Finance Minister George Papaconstantinou reiterated a hiring freeze for civil servants. He also said the government will offer a tax amnesty on funds held abroad in a bid to boost revenue. While forbidden by law to take part, police, fireman and coast guard workers said they will also join the rallies. “This game of speculation is being played out at the expense of the worker,” said Yiannis Grivas, the head of the union of tax collectors, which held a 48-hour strike last week and will rally again on Feb. 17. Still, not all public workers are striking. More than 64 percent of 2,299 people polled in the two days after Papandreou announced additional deficit-cutting measures believe his government is moving in the right direction and the measures are necessary, according to a Kappa Research poll for To Vima newspaper on Feb. 7. “Why should I strike and lose 50 euros?” said Effie Strati, a childcare worker at a state-run nursery. She said all her colleagues will be at work. To contact the reporters on this story: Maria Petrakis in Athens at mpetrakis@bloomberg.net ; Natalie Weeks in Athens nweeks2@bloomberg.net .

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Greek Strikes to Paralyze Athens as Papandreou’s Deficit Drive Challenged

February 9, 2010

By Maria Petrakis and Natalie Weeks Feb. 10 (Bloomberg) — Prime Minister George Papandreou ’s drive to get Greece’s ballooning budget under control will be challenged in the streets today as striking labor unions shut down schools, hospitals and flights. Air-traffic controllers and civil-aviation workers are effectively closing down Greek air space as part of the 24-hour work stoppage by ADEDY, the umbrella group representing about 600,000 civil servants. Some 483 international and domestic flights have been cancelled, a spokeswoman for Athens International Airport , Greece’s biggest, said by phone. Protests against Papandreou’s plans to freeze wages and reduce benefits come after European Union leaders, set to meet at a summit in Brussels tomorrow, signaled they may aid the country if progress in cutting the deficit is made. Bonds have slumped in Greece and in the euro area’s southern edge as investors examine budget shortfalls across the 16-nation bloc. “The concern is whether the strike will be a one-off or the first of a long series of street demonstrations involving other parts of the economy,” said economist Giada Giani of Citigroup Global Markets in London. “We need to see a prolonged period of strikes before we know whether the government’s willingness will be affected.” ADEDY opposes Papandreou ’s plans and may call out its workers again on Feb. 24, when the biggest private-sector group GSEE holds its own 24-hour strike. Today’s walkout, with rallies in Athens and other cities and towns, is organized labor’s first major challenge since the Oct. 4 election of Papandreou, a socialist that unions backed in the vote. Union Threats “Cutting public-sector salaries is an easy political choice,” Spyros Papaspyros , chairman of the ADEDY civil servants union, said this week. “Attacks that start on the public sector will lead to attacks on all.” The unions are contesting measures demanded by the EU and investors to reduce a deficit of 12.7 percent of gross domestic product last year to within the EU’s 3 percent limit in 2012. Greece’s fiscal woes have stoked concerns that it may need a bailout and helped spark a rout in global stocks . Spain and Portugal, also suffering from gaping deficits after the worst recession since World War II, have been sucked into a market selloff that has seen the euro fall to a nine- month low against the dollar on concern that swelling shortfalls will stifle Europe’s recovery. Bonds Jump Greek, Spanish and Portuguese bonds jumped yesterday after the EU signaled it may aid Greece. The euro rose the most in more than five months and the Greek 10-year bond yield fell the most since at least 1998. The premium investors demand to buy Greek debt over comparable German bonds ballooned on Jan. 28 to the highest since 1998 amid concern that Papandreou’s deficit plan relied too much on one-off measures for revenue and not enough on spending cuts. Olli Rehn , who today takes over as European economic affairs commissioner, said the EU could offer Greece “support in the broad sense of the word.” In Germany, Michael Meister , financial affairs spokesman of Merkel’s Christian Democratic Union, said “we are considering support.” Hours before the strike, Greek Finance Minister George Papaconstantinou reiterated a hiring freeze for civil servants. He also said in Athens that the government will offer a tax amnesty on funds held abroad in a bid to boost revenue, While not allowed by law to take part, police, fireman and coast guard workers said they will also join the work stoppage. ‘Game of Speculation’ “This game of speculation is being played out at the expense of the worker,” said Yiannis Grivas, the head of the union of tax collectors, which held a 48-hour strike last week and will rally again on Feb. 17. Still, not all public workers are striking. More than 64 percent of 2,299 people polled after in the two days after Papandreou announced additional deficit-cutting measures believe his government is moving in the right direction and the measures are necessary, according to a Kappa Research poll for To Vima newspaper on Feb. 7. ““Why should I strike and lose 50 euros?” said Effie Strati, a childcare worker at a state-run nursery. She said all her colleagues will be at work. To contact the reporter on this story: Maria Petrakis in Athens at mpetrakis@bloomberg.net

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British Airways Wins Court Order to Block Cabin Crew Walkout Over Holidays

December 17, 2009

By James Lumley, Steven Rothwell and Lindsay Fortado Dec. 17 (Bloomberg) — British Airways Plc won a court order preventing a 12-day strike by cabin crew that would have disrupted travel for more than 1 million people over the Christmas and New Year holidays. Judge Laura Cox in London ruled that a strike vote held by the Unite union was invalid because it included people who had already agreed to leave the airline. While Unite plans to stage a fresh poll, it must give at least a week’s notice, making a walkout before next year unlikely. The strike by 13,000 flight attendants at Europe’s third- largest airline was scheduled to begin on Dec. 22 after the failure of months of negotiations about staffing levels. BA and the union are holding separate talks to seek a lasting agreement. “A strike of this kind over the 12 days of Christmas is fundamentally more damaging to BA and the wider public than a strike taking place at almost any other time in the year,” Cox said. British Airways said today it was “delighted” that the strike threat had been lifted and urged Unite to reflect before deciding on its next steps. The union said the High Court decision represented “a dreadful day for democracy.” Inaccurate Figures Cox said in her ruling that Unite should have been aware that it was using inaccurate data for the vote. Unite called the strike on Dec. 14 after saying that 80 percent of crew members had turned out to vote, with 92 percent backing a walkout. “It’s very easy to be caught out and if you don’t have a valid ballot the strike is illegal,” said Ronnie Fox , an employment lawyer who wasn’t involved in the case. “It’s just necessary to read the fine print very carefully.” Cox said the rules are set out in an Act of Parliament and apply to all trade unions equally. “We will of course be studying the judgment, but the fact remains that this dispute is not settled,” Unite joint general secretaries Derek Simpson and Tony Woodley said in a statement. “BA must accept that there can be no resolution except through negotiation, failing which there will inevitably be a further ballot for industrial action.” Long-Haul Flights Unite polled its members after British Airways last month introduced new working practices that cut at least one flight attendant on long-haul flights out of its London Heathrow hub. Cox denied Unite permission to appeal her ruling. The union can still ask the Court of Appeal in London if they will consider hearing a challenge. “For the moment Christmas is safe for all those travelling with BA,” said Guy Lamb , an employment partner with DLA Piper UK LLP, who is not involved with the case. “Without an appeal, the union would be forced to re-ballot their members to hold a strike which is a lengthy process that would carry on well into 2010.” Chief Executive Officer Willie Walsh is seeking to trim 140 million pounds ($226 million) from costs by eliminating the equivalent of 1,700 cabin-crew jobs through voluntary departures and part-time working after a slump in air travel pushed BA to a 217 million-pound loss in the six months ended Sept. 30. British Airways fell 4.8 pence, or 2.4 percent, to 192.2 pence in London. The carrier’s stock has gained 7 percent this year, boosting its value to 2.2 billion pounds. British Airways said in a statement that today’s ruling would be welcomed by hundreds of thousands of families around the world and that “old-style trade union militancy” is not relevant to its efforts to return to profitability. “In recent days, we believe Unite has formed a better understanding of our position and of the ways in which we could move forward,” the airline said. To contact the reporters on this story: James Lumley in London at jlumley1@bloomberg.net ; Steven Rothwell in London at srothwell@bloomberg.net ; Lindsay Fortado in London at lfortado@bloomberg.net .

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Image Resources (ASX:IMA) Eucla Basin Cyclone Extended HM Strands Increased By 80% To 4.5Km Strike Length

October 27, 2009

Image Resources (ASX:IMA) Eucla Basin Cyclone Extended HM Strands Increased By 80% To 4.5Km Strike Length

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India’s Jet Airways to Resume Full Operations Today as Pilots End Strike

September 13, 2009

By Vipin V. Nair Sept. 13 (Bloomberg) — Jet Airways (India) Ltd., the nation’s largest carrier by market value, said it will resume full operations today after reaching an agreement with some of its pilots who had been on strike for the past five days. The airline reinstated the four pilots it fired and formed a consultative group for talks, Vice President K.G. Vishwanath told reporters today in Mumbai, where Jet Airways is based. More than 1,000 flights were scrapped during the strike, leading to daily revenue losses of about $2.2 million, he said. The strike forced Jet Airways to cancel about 800 flights since Sept. 8, stranding more than 13,000 passengers, according to government estimates. The airline scrapped flights after pilots belonging to the newly formed National Aviators Guild called in sick, refusing to work until the carrier recalled the four pilots dismissed for initiating steps to form the union. Jet Airways spokeswoman Ragini Chopra and union president Girish Kaushik didn’t answer calls to their mobile phones. “A potential challenge in the form of labor unrest is something that the industry will now be concerned about,” said Binit Somaia , South Asia director at the Centre for Asia Pacific Aviation. “Labor unrest is not something the India’s private airlines had to deal with in the past. Now most carriers will be concerned.” Domestic bookings slumped 39 percent to 14,000 a day since the strike began, Sudheer Raghavan , chief commercial officer, said Sept. 9. International reservations were down 9.5 percent to 9,500 a day. Double Rates Rival carriers began to charge fares at almost double the usual rates after the strike hampered Jet Airways’ operations, the Daily News & Analysis newspaper reported Sept. 11, without saying where it got the information. India’s Directorate General of Civil Aviation asked airlines to charge fares at rates that prevailed in the week ended Sept. 6, according to a statement from the Press Information Bureau. As many as 400 captains and first officers protested the firing of their colleagues, said Sam Thomas, general secretary of the guild. The airline then asked a court to force the striking pilots to return to work. Shares of Jet Airways rose 2 percent to 258.55 rupees in Mumbai on Sept. 11. The stock has gained 27 percent this year. Jet Airways posted a first-quarter loss of 2.25 billion rupees ($46 million) as slowing economic growth damped travel demand. The airline may post its worst annual loss in a decade in the year ending in March, according to data compiled by Bloomberg. The airline slashed flights to the U.S. and other long-haul destinations to save as much as $600 million this year. Airline losses globally may total $9 billion this year, according to the International Air Transport Association, almost double the group’s previous forecast. To contact the reporter on this story: Vipin V. Nair in Mumbai at Vnair12@bloomberg.net .

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NATO Says Civilians Killed in Afghan Air Strike, Canadian General to Probe

September 8, 2009

By Gregory Viscusi Sept. 8 (Bloomberg) — NATO’s commander in Afghanistan appointed a Canadian general to investigate a Sept. 4 air strike that may have killed civilians. U.S. Army General Stanley McChrystal , the North Atlantic Treaty Organization chief in Afghanistan, said in a statement that he’d asked Major General C.S. Sullivan to lead an inquiry into the incident near the northern town of Kunduz. “An initial assessment conducted at the scene of the incident by McChrystal and several of his senior leadership team concluded that civilians had been killed or injured in the strike,” according to the statement. Afghan Rights Monitor, an Afghan group, said 60 to 70 people were killed in the attack. The New York Times cited Afghan officials saying up to 90 people died. German troops called in the strike, which was carried out by U.S. planes. Northern Afghanistan is under German command. The incident has become an issue in the German Sept. 27 legislative elections, with Chancellor Angela Merkel telling lawmakers today that Germany’s military engagement in Afghanistan is necessary to combat terrorism. Germany has about 4,000 troops in Afghanistan, the third largest contingent after the U.S. and the U.K. “The consequences of not acting will affect us just as much as the consequences of acting,” Merkel said. “The mission in Afghanistan is our reaction to terror. It originated from there, and not the other way around.” Fuel Trucks The NATO inquiry “is examining the series of events that began on Sept. 3, when two fuel trucks were reported stolen by insurgents,” according to the NATO statement. Troops of the NATO-led International Security Assistance Force “later located the trucks on the banks of the Kunduz River,” NATO said. “Believing civilians were not in the area, the local ISAF commander authorized an air strike, which destroyed the two fuel trucks. Subsequent review has led ISAF to believe that along with insurgents, civilians also were killed and injured in the strike.” Afghan President Hamid Karzai condemned the air strike. In an interview with the French newspaper Le Figaro yesterday, he said McChrystal had called to apologize. The air strike has divided NATO allies, with French Foreign Minister Bernard Kouchner saying on Sept. 5 the attack was “a big mistake.” France has 3,160 troops in the country, the fourth largest contingent. Faced with growing anger from Afghan civilians and from the Afghan government, McChrystal last month issued new guidelines that call for air power to be used as a last resort. The investigation will take several weeks, NATO said. Other members of the team will include representatives of the German Army and U.S. Air Force, and they will coordinate with the Afghan government’s own probe. To contact the reporter on this story: Gregory Viscusi in Paris at gviscusi@bloomberg.net .

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