Employees at Britain’s busiest airport have been issued an ultimatum that suggests their jobs could be at risk if they don’t agree to a substantial wage cut. In a memo seen by Sky News, Paula Stannett, the airport's chief people officer, has threatened employees with dismissal if they refuse what she calls a ‘voluntary’ pay cut of 15%. Employees are concerned that any re-hiring following dismissal could be on unfavorable terms.

‘Dismissal and reinstatement’

According to reporting in Sky News this morning, employees at London’s Heathrow Airport have been threatened with dismissal if they decline what the company is calling ‘voluntary pay cuts’. The report suggests that the airport has asked staff to accept a 15% pay reduction owning to travel demand plummeting in recent weeks.

Sky News has claimed to have seen an internal memo from the head of Heathrow’s human resources, Paula Stannett. In the memo, she said,

"We are looking for everyone to play their part and are not expecting anyone to opt out, other than those who are leaving us very shortly through redundancy.

"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."

Employees at Heathrow had already had a 10% pay cut levied on them, and around one in four senior managers are facing redundancy. Now, Paula Stannett’s message takes this a step further, suggesting staff could be dismissed if they refuse to accept the pay cut. She continued,

"My proposal is that we should offer furlough followed by voluntary severance for colleagues who do not want to take a pay reduction.

"In the unlikely case that colleagues continue to refuse to take part, dismissal and reinstatement might be the final step.

"Obviously that is something I am keen to avoid, although I can confirm that is an option that is legally available to the company to take."

Legally available doesn’t automatically assume moral or ethical, and the message certainly doesn’t make it sound like a voluntary pay cut at all. While it’s understandable that Heathrow needs to cut costs, issuing such ultimatums is clearly a somewhat underhand way of going about things. Sky News reports that some employees are worried that getting laid off and then rehired could see them coming back to their jobs on inferior employment terms.

Cutting costs to curb the losses

With the entire aviation industry straining under the pressures of a global downturn in travel traffic, airports around the globe are facing huge losses. Heathrow reported a five percent drop in passengers during February, and the drop experienced in March is expected to be far worse.

While the UK government is considering airline bailouts on a case by case basis, it has not outlined any packages of measures to support the airports themselves. However, it has made available a number of business loans as well as the facility for employers to claim back up to 80% of employee wages if they are unable to work at the present time.

Chief executive at the airport, John Holland-Kaye, has previously said he would give up his salary for the next three months in a bid to reduce overheads. He joins a number of airline CEOs in forgoing his wages, although that’s unlikely to have a significant impact on the finances of the airport overall.

What do you think about Heathrow’s ultimatum to its staff? Let us know in the comments.