British Airways brand versus Unite - the gloves are off
The verdict at end of the latest round of the heavyweight fight between British Airways and the Unite union (which represents 13,500 BA cabin staff) suggests British Airways taking the bout – but only just.
Mrs Justice Cox ruled that Unite had indeed breached the 1992 Trade Union Act. It should have asked members whether they were leaving the company and stopped them from participating in the ballot if they had already accepted redundancy.
She said:
“A strike of this kind over the twelve days of Christmas is fundamentally more damaging to BA and the wider public than a strike taking place at almost any other time of the year.”
Unite was banking on the ringside sympathy from the public. However they were unprepared for the overwhelmingly bad press stirred by the intended Christmas strike announcement .
The union warned that the decision didn’t bode well for the ordinary worker who, like their members is steadily loosing the rights to a voice. It called the verdict a “bad day for democracy”
The union will hold a fresh ballot.
“We are not going away, we are Willie’s [BA’s chief Executive] headache for 2010,”
a unite source told the British press.
…and in branding terms – what a headache…
Entering the new year, the public may become nervous of making any firm bookings with the airline – at the very least until the entire episode is settled.
On the positive side, by avoiding a Christmas strike, the airline has ducked what could have been a fatal blow to its image. Yet this alone may be small comfort for British Airways.
It is yet to be seen just how many more jabs British Airways can comfortably withstand, including left hooks such a the general decline in air travel. (This week, Flyglobescan went into administration, stranding 4,500 customers stranded abroad).
A painful blow to Unite?
It’s going to be a bumpy ride
Through cultivating a brand image of ‘added British refinement and service in the skies’ the company has traditionally relied on business and first class ticket sales to boost its economy seats.
However today, traditional corporate fliers are often encouraged to choose lower-cost competitors.
The airline is struggling to cope with a difficult financial year during 2009. It posted a pre-tax loss of £292m for the six months up to the end of September, which incorporated the customarily profitable summer holidays.
British Airways is also looking to tie up merger deals with Iberia Lineas Aereas de Espana SA, as well as seeking collaboration with American Airlines on North Atlantic routes.
With so much at stake, any publicised ‘hits’ on public perception of the brand will need to be taken with an ‘iron jaw’.
The fight for the skies goes on…
Jonathan Gabay
www.brandforensics.co.uk
Friday, December 18th, 2009 at 8:53 amand is filed under Brand expert, Branding, British brands, global brands. You can follow any responses to this entry through the RSS 2.0 feed.
December 18th, 2009 at 10:43 am
Orchestrating a strike of this magnitude, and during the Christmas season, Unite the Union really haven’t done themselves any favours. The public have become much wiser, and hopefully more cautious of, quite frankly, corporate ‘trouble-making’. An opinion based on many conversations, personal and professional, I have recently had on the situation.
Combined with the state of the UK economy, and the increased financial burdens many families have found themselves with, BA staff really should appreciate the value of having a job. As I am told: BA cabin staff are treated pretty well – paid up to 50% and an average pension of 35% more than any other airline…
Once this disruptive, apathetic situation is over, “Unite” should redirect their cantankerous energies to renaming themselves — coming up with more fitting nomenclature!
December 23rd, 2009 at 8:17 pm
very perceptive…
October 26th, 2010 at 2:42 pm
british airways is the best airline that i have been into, great crew and great service:”`
November 13th, 2010 at 3:41 pm
you can always say that british airways is the best airline on the travel industry “~”