BA hit by losses.

British Airways is expected to announce losses of about £60m, a day after resolving a staff dispute which caused chaos at Heathrow. These losses cover the period April - June 2003. That's a fall of £125m from last year.

These losses do not include the current strike action and associated knock-on effects, likely to run into tens of millions of pounds.

The losses did include the impact of:

The Iraq war
The outbreak of the Sars virus
The ongoing economic uncertainty worldwide

The company is also expected to give details of the cost of the Heathrow strike, when check-in staff walked out over the introduction of a swipe card clocking-on system.

The strike has now been settled. BA has agreed:

Staff pay would not be affected
Rotas will continue to be decided the same way
Split shifts will not be introduced
Neither will annualised hours

The strike, 12 days ago, led to 500 flights being cancelled, with tens of thousands of passengers enduring days of chaos while the backlog was cleared.

Source: BBC 31^st July 2003 (adapted)

Questions

Outline the main forms of industrial action
During the strike ACAS were called in. Explain the role of ACAS.
Evaluate the various factors that affected the outcome of this strike.
Suggest what the possible 'knock-on' effects of the strike may be.

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