British Airways suspends 30,000 jobs and parent company cancels dividend

British Airways reported Thursday that it reached an agreement with its unions to suspend the employment of more than 30,000 cabin crew and ground personnel., which is one of the most dramatic measures by the airline industry to survive the coronavirus pandemic, notes Reuters.

Faced with the harsh blow to the spread of the virus for airlines around the world, IAG said that tIt would also cut its capacity by 90% in April and May, and it would cancel the dividend payment, in a desperate attempt to overcome the worst crisis in its history.

As BA has already agreed to a 50% pay cut for its pilots, the deal focuses on cabin and ground staff, engineers, and office staff. The Unite union said that under this program the personnel would be suspended with 80% of the salary, without a salary cap, and without anyone being fired.

“Given the incredibly difficult circumstances facing the entire aviation sector, this is the best possible deal for our members,” said Unite country officer Oliver Richardson.

“The agreement protects the jobs of BA staff and, to the extent possible, also protects their wages.” added.

Furthermore, on Thursday IAG canceled its final dividend, saving 337 million euros ($ 366 million). Shares were up on the announcement of the Temporary Employment Regulation File (ERTE) but closed with a 1 percent drop.

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