BA dispute closer to resolution

British Airways have backed away from imposing the "swipe card" clocking-in system that led to an unofficial strike that cost the company an estimated £50m (€71m).

Negotiations are to resume, with both sides cautiously optimistic the dispute will be settled.

Mervyn Walker, the director of BA's Heathrow operations and its main negotiator, said he was pleased with progress made in discussions held with three trade union leaders yesterday.

Brendan Barber, the TUC general secretary, said the meetings were "useful and very positive" and the company and union negotiators would reconvene today at noon.

BA agreed to withdraw the compulsory introduction of the swipe cards and to talk about an alternative three-point plan proposed by the unions.

A 3 per cent pay increase delayed since January would be considered separately, under the union plan.

BA is anxious for a settlement after an unofficial walk-out by hundreds of check-in staff at Heathrow 12 days ago resulted in the cancellation of 500 flights and delays for 80,000 passengers.

BA's chief executive, Rod Eddington, admitted on Monday that the company had underestimated opposition from staff to the new system.