This article is more than 5 months old

This article is more than 5 months old

Workers at Heathrow airport have been told they could be dismissed if they do not accept voluntary pay cuts, as most international air traffic has ground to a halt amid the coronavirus pandemic.

Staff at Britain’s busiest airport who are not trade union members have been told in a memo from the company to accept a 15% reduction in pay, otherwise “dismissal and reinstatement might be the final step”.

Quick guide UK government support for workers and businesses during the coronavirus crisis Show Hide Income subsidies Direct cash grants for self-employed people, worth 80% of average profits, up to £2,500 a month. There are similar wage subsidies for employees. Loan guarantees for business Government to back £330bn of loans to support businesses through a Bank of England scheme for big firms. There are loans of up to £5m with no interest for six months for smaller companies. Business rates Taxes levied on commercial premises will be abolished this year for all retailers, leisure outlets and hospitality sector firms. Cash grants Britain’s smallest 700,000 businesses eligible for cash grants of £10,000. Small retailers, leisure and hospitality firms can get bigger grants of £25,000. Benefits Government to increase value of universal credit and tax credits by £1,000 a year, as well as widening eligibility for these benefits. Sick pay Statutory sick pay to be made available from day one, rather than day four, of absence from work, although ministers have been criticised for not increasing the level of sick pay above £94.25 a week. Small firms can claim for state refunds on sick pay bills. Other Local authorities to get a £500m hardship fund to provide people with council tax payment relief. Mortgage and rental holidays available for up to three months.

The message was sent to thousands of staff by Paula Stannett, the airport’s chief people officer, who warned workers the business expected “everyone to play their part”.

Stannett wrote: “There will be consequences if colleagues do not accept the revised terms as it will mean that we have to make further job cuts. It will also have consequences for those colleagues who do not wish to participate.”

Members of the Unite union employed by the London airport, including security guards and firefighters, have already accepted a 10% reduction to their pay for nine months.

Heathrow reported a significant fall in passenger numbers in February and March, and said demand continued to decline. The amount of cargo passing through Heathrow also fell during that period, as the virus impacted global trade.

On Tuesday, the transport minister, Chris Heaton-Harris, told MPs air traffic volumes were down 92% compared with last year.

The airport blamed a slump in demand for Asian and European routes, regions where airlines have significantly cut back or halted flights because of the pandemic. It has closed two of its four terminals and one runway.

A Heathrow spokesperson said the business was trying to reduce its cost base by cancelling executive pay, freezing recruitment and reviewing all capital projects.

“Heathrow is prioritising the protection of jobs while working to keep Britain’s front door safely open for people requiring repatriation and vital medical supplies needed during this crisis,” the spokesperson said.

“It is only right that similar pay reductions are taken on by everyone in the business as we fight to ringfence as many jobs in the future and play our part in protecting as many colleagues as possible.”

Amid falling passenger traffic, Heathrow says it has increased its capacity to handle cargo and is calling on airlines and freight companies to consider importing more goods by air.

The airport says 40% of the UK’s pharmaceutical products, including medicines, vaccines and respirators, are imported via Heathrow.

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