Many companies have asked their staff through these difficult times to work part time or take unpaid leave. Some have even asked staff to take a pay cut with the promise that they will “make good” in better times.
More often than not, staff have been happy to comply. Intrepid Travel’s Darryl Wade told me that in the last recession employees agreed to have their pay cut; they eventually were paid back and given a bonus for their loyalty. Often in this situation the staff feel good about helping the company and are confident they will be rewarded in better times.
But the struggling British Airways appeal to staff to work for nothing for one month crosses a line.
Yesterday chief executive Willie Walsh told staff he would forgo a monthly pay packet (he earns $1.5 million a year) and asked them to do likewise or at least work for nothing for between one and four weeks.
He wants every part of the company to help cash up the airline which lost $800 million last year. “Our survival depends on everyone contributing to changes that permanently remove costs from every part of the business,” he says.
The mistake he has made is that paying staff is not optional. It is not a cost that can be waived. Staff are the business. And if you can’t pay your staff you haven’t got a business.
All this request will do is antagonize staff when you need them working as efficiently and effectively as possible and delay the inevitable: a major restructure.
And what fodder for the media: the cabin crew who are paid $22,000 a year asked to help cash up the airline that is losing millions a week.
And of course it just shines the spotlight on the BA executives’ high salaries and bonuses. Many companies are showing restraint and respect for employees in these difficult times.
But BA? Sorry. It just doesn’t fly.
Smart Company is a sister publication to The Mandarin, catering to Australia’s entrepreneurs, small and medium business owners and business managers.
