The Gate Gourment dispute has left an increasingly bitter taste. Not only has British Airways been landed with a £ 40 million pound bill, but the allegations of "union busting" and attempts to deny the workforce the protection available under UK law demand a proper enquiry.
Ownership of what was originally a Swiss owned in-flight caterer passed to US venture capitalist Texas Pacific in 2002. Since then, Gate Gourmet's losses have rocketed, so that today a £25 million loss is predicted for the current financial year. This is mainly due to cost cutting measures by its airline customers which have seen the in-flight catering market shrink by 30% (40% in the US) since 2001.
Just the incentive for a ruthless management to provoke industrial action to cut their losses and export the operation to countries offering cheaper, less protected workers?
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