The management of London Heathrow Airport has told its frontline workers to accept a pay cut of 15 - 20 percent or face job losses, as the aviation sector struggles and hopes for a quick recovery from the effect of the pandemic.
The airport issued a formal section 188 notices on Wednesday, allowing it to potentially fire and rehire employees, after months of negotiations with unions representing its directly employed ground staff failed to produce an agreement.
Although Heathrow insisted it was not looking to cut jobs, the chief executive, John Holland-Kaye, had previously suggested that up to one in four of its employees could lose their jobs and up to 25,000 across the airport, including those employed by other companies.
Heathrow has already laid off one in three managers and imposed 20 percent pay cuts on its office staff.
Section 188 notices allow Heathrow to bypass negotiations after 45 days elapsed and then offer employees new contracts. All will be told they are to be employed at a market rate which means long-serving staff could face pay cuts of up to £10,000 if they choose to stay on.
Heathrow said it would soften the blow by offering lump sums to cover the initial losses, as well as enhanced voluntary redundancy to those who preferred to leave.
Heathrow spokesperson said: “Covid-19 has decimated the aviation industry, which has led to an unprecedented drop in passenger numbers at Heathrow, costing the airport over £1bn since March". Provisional traffic figures for August show passenger numbers remain 82 percent down on last year and we must urgently adapt to the new reality.
"The offer still guaranteed a job at the airport for anyone who wished to stay". The spokesperson added.
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