Compensation offered to airline caterer workers

GATE GOURMET, the caterer at the centre of a two-day strike that grounded 700 British Airways flights, said it offered sacked and current employees compensation as part of a plan to reduce its workforce.

The 670 workers who were fired on August 10 after going on strike and Gate Gourmet’s existing 1,400 employees were offered two weeks’ pay for every year of service, the company said in an e-mailed statement. The caterer, which needs to cut jobs to reduce costs, said compulsory dismissals may follow.

“This programme enables us to provide for an enhanced compensation package,” said managing director of the caterer in London Eric Born.

“We are making it available not only to our 1,400 loyal current staff, but also to those former employees who chose to engage in an illegal wildcat action rather than within the bounds of the law.”

The firings by Gate Gourmet, which supplies food to British Airways at Heathrow airport, prompted a strike by BA workers that stranded 100,000 passengers and cost the airline about £40 million (€58m). The carrier has pressured the two sides to settle and avoid another strike. BA will pay the caterer £7m (€10m) to fund the job cuts.

Leo Seaton, a spokesman for the airline, cited “commercial confidentiality” when declining in a telephone interview to comment on specific details of the deal.

“We have improved the financial terms of our deal with Gate Gourmet and extended our relationship until 2010,” Mr Seaton said.

That contract is subject to Gate Gourmet reaching an agreement with the Transport & General Workers Union over the sackings and job-cut programme, he said.

The union had demanded that all 670 employees be reinstated.

Gate Gourmet may decide whether or not to accept requests for voluntary redundancy, the company said.

“It is Gate Gourmet London’s hope that the results of this voluntary programme and compensation payment plan, coupled with a possible compulsory programme and work rule changes, will reduce its workforce to levels agreed upon by the union which will restore the company to economic viability,” the caterer said.