2nd Jul 2020 12:26
(Alliance News) - International Consolidated Airways Group SA's British Airways unit and trade unions have been urged by the UK's transport secretary to sit down and "sort out properly" concerns over jobs.
IAG shares were 5.3% higher at 230.83 pence each in London on Thursday afternoon.
Grant Shapps said the UK government has put in "a lot of money" to support businesses via the coronavirus furlough scheme and name-checked BA as one firm expected to find a way forward with its staff.
MPs have been critical of the airline for cutting up to 12,000 jobs and downgrading the terms and conditions of the bulk of its remaining employees.
The carrier previously insisted no decisions have been made and it is doing everything it can to "sustain the maximum number of jobs".
Speaking at transport questions, Labour's Richard Burgon, MP fo Leeds East, accused BA of a "jobs betrayal" and called on the government to amend its access to "lucrative" UK landing slots.
Shapps replied in the commons: "As a government we're very concerned about this.
"We put in a lot of money through the furlough scheme to support jobs, we now expect both British Airways and other companies – and indeed the unions – to actually sit down and sort this out properly."
Labour's Barbara Keeley, MP for Eccles South, earlier said of BA: "If they fail to treat their staff properly, surely it is time to review whether they are fit to be our national carrier and also time to reallocate those slots."
Aviation Minister Kelly Tolhurst replied: "I've spoken to Willie Walsh and encouraged BA and the unions to engage constructively with each other. Employees should be treated fairly and in the spirit of partnership, and we are working with the aviation sector on a restart and recovery plan.
"And of course, we will be looking at all regulations at our disposal."
Shadow transport minister Mike Kane also called on the government to bring forward a support package for the aviation industry.
Kane said: "The US, Spain, Germany and France have all agreed specific deals, aviation deals so their countries bounce back more strongly. If not now, when will the government implement a comprehensive package for our aviation sector matching Labour's commitment?"
Shapps replied: "(Kane) is absolutely right about the critical importance of our aviation sector, the third biggest in the world. It is extremely worrying times, of course, it will help as the air bridges start to unlock and we'll hear more about those very soon."
source: PA
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
International Airlines