PM captures mood of the nation over strike threat

Mar 17 2010 By Andrew Hebden, The Journal

GIVEN the amounts of cash the Unite union ploughs into the Labour Party every year, Gordon Brown's unequivocal denunciation of its members’ strike at British Airways seemed like a bold move.

Yet the Prime Minister seems to have successfully captured the mood of the public on this contentious issue, with the union looking increasingly isolated.

Its members – threatened with losing their lifelong travel perks if they take part in the strike due to start on Saturday – have some tough decisions to make over the coming days.

Willie Walsh, BA’s outspoken chief executive, is not exactly a lovable fellow at the best of times. But there seems to be a genuine feeling for his company’s plight as a result of the recession and a sense that the business has little choice but to stand tough in this dispute with its cabin crew.

This week’s latest airport passenger numbers underline the sense of crisis affecting the aviation industry. The total decrease across all UK airports amounts to the biggest fall in traffic since the Second World War.

Faced with such a collapse in demand, any responsible business needs to take drastic action. In the North East, we have seen the owners of Durham Tees Valley Airport undertake a fundamental review of the way it operates, and that has meant taking some tough decisions along the way.

For BA the stakes could be even higher. The airline’s very existence is at risk if it does not do something to address its high cost base.

Whilst the way it has conducted its relations with the union may leave much to be desired, it is telling that the public seems to have sided with a huge business which in the past it has often loved to hate.

It will be fascinating to see which side of this public spat is most damaged should this industrial action go ahead. But one thing is for sure. Unlike in the case of previous industrial disputes which have brought Labour administrations to their knees, the BA strike will not be the event that does for Gordon Brown.

Andrew Hebden is head of business at The Journal