[A-List] UK corporate state: labour struggles

["Keaney Michael" <Michael.Keaney@xxxxxx>]

Air traffic staff threaten Serco strike

Andrew Clark
Tuesday May 14, 2002
The Guardian

Staff at Britain's cash-strapped air traffic control network have
threatened to walk out, causing potential chaos in the skies, if support
services group Serco is allowed to invest in the business.

A leading union at National Air Traffic Services voted unanimously at
the weekend to begin industrial action if Serco is involved in an
imminent £100m refinancing. Staff believe the outsourcing firm will
impose swingeing job cuts, ripping up collective agreements on
redundancies.

Graham Belchamber, national officer for the Public and Commercial
Services union, said: "If they put money in, they will clearly want
something out - they will want some input into the management.

"We've decided that if Serco become involved in Nats, whether it's as an
equity partner or something more permanent, we'll organise a programme
of industrial action."

Nats was part-privatised last year, with a consortium of airlines
including Virgin, EasyJet and British Airways taking a 46% stake. The
downturn in air traffic since September 11 has left the organisation
nursing a huge financial headache.

Under questioning by a committee of MPs last month, Nats chairman Chris
Gibson-Smith revealed that the business was seeking a new partner to
invest at least £50m. The government has agreed to match this with a
further £50m.

Airports operator BAA is believed to be the favourite to come up with
the extra cash. But Serco is also in the race; the firm was a
shortlisted bidder last year for the initial stage of privatisation.

Mr Belchamber said that at a meeting with union representatives in
January 2001 Serco executives had warned of big changes if they took
control. "They told us across the table, in front of officers from the
Department of Transport, that they'd look for major job cuts. They said
they'd cut pay and they threatened to scrap collective agreements,
including redundancy agreements."

The PCS represents 1,600 operational, management and support staff at
Nats. Its members include air traffic assistants, who provide
controllers with information about the flight plan, destination and crew
of each aircraft passing through British airspace.

A spokesman for Serco declined to comment on the resolution, saying it
was mere "speculation" that the company might have a role in Nats.