Introduction to Human Resources: British Airways Pilot Strike Analysis

This report provides an in-depth analysis of the British Airways pilot strike, examining it as a critical human resources issue. It explores the root causes of the strike, primarily focusing on the pilots' dissatisfaction stemming from wage disputes, lack of benefits, and concerns about company management. The report utilizes Herzberg's two-factor theory to explain the importance of hygiene factors in employee motivation. It outlines the significant impact of the strike, including flight cancellations, financial losses, and the disruption to both the UK and global economies. Furthermore, the report considers the viewpoints of both the pilots and the company, and offers recommendations for British Airways to address the issues, such as increasing pay and benefits, and adopting more effective cost-cutting strategies. The analysis includes the importance of negotiation to resolve the conflict and prevent future occurrences.

Running head: INTRODUCTION TO HUMAN RESOURCES
Introduction to Human Resources
Name of the Student:
Name of the University:
Author note:

1INTRODUCTION TO HUMAN RESOURCES
Introduction
British Airways (BA) is flagship carrier of the UK with an excellent track record of
safety, punctuality and top notch services. However, in the recent times, British Airways has
drawn much attention due to strikes called by its pilots. Around 4300 pilots, which is around
93% of the total pilot force of BA, took part in the first strike in the 100 year history of the
airline. The reason for the strike has been highlighted as the rejection to the demand for 11.5%
increase in the pay. According to the British Airways Pilots Association, they received pay cuts
after the financial crisis for supporting the airline, however, when they demand for a payrise and
benefits after a decade, the company is refusing (Nguyen, 2019). Thus, they have called for
strike, which has been affecting the business of British Airways in a massive way. This a major
Human Resource issue that can arise in any organization and companies must deal with this
remuneration related HR issues very sensitively.
Different viewpoint on the HR issue
The dissatisfaction and lack of motivation of the British Airways pilots have generated
from the lack of proper wage increase and lack of benefits. According to the two-factor theory of
motivation by Herzberg, wage, benefits, incentives, bonus, perks etc. fall under the category of
hygiene factors, absence of which creates job dissatisfaction among the employees and that
results in demotivation (Alshmemri, Shahwan-Akl & Maude, 2017). Furthermore, the pilots have
also lost confidence in the company management and the direction of business operation. The
cost cutting programs, aimed to increase profits of the airline, have led to fall in the quality of
services and negatively affecting both the customers and the employees (Topham, 2019).

2INTRODUCTION TO HUMAN RESOURCES
However, the employer view point says that as the aviation industry has become more
competitive in the past decade, followed by the political turmoil due to Brexit, 11.5% rise in the
pay along with some benefits for all the employees would put a huge pressure on the company
revenue and the profit margin would fall substantially. Thus, failure of negotiation between the
pilots’ union and the employers have resulted in job dissatisfaction, lack of motivation and
eventually going on a strike for the employees (Nguyen, 2019).
Impact of the issue on HR demands
4300 pilots have called the strike and that affected around 1700 flights, almost 290,000
passengers and incurred loss of around $100 million for BA. On one hand, the demand for pay
hike after almost three years is justified given the inflation, on the other hand, it became a matter
of criticism as the pilots already earned six digit salaries (Topham, 2019). However, the impact
of the strike was massive on the UK as well as for the global economy.
Ways to address HR issues
To address this particular HR issue, British Airways must focus on increasing the hygiene
factors for the employees. They should negotiate with the employee union to determine the
percentage of pay increase. That would help to motivate the employees to provide better service.
They should also take measures to win back the confidence of the employees by addressing their
concerns.
Recommendations
British Airways should increase the pay and benefits of the pilots considering the
inflation in the economy and higher wage of the pilots in the competitive airlines. The airline

3INTRODUCTION TO HUMAN RESOURCES
should also have more relevant cost cutting strategies which would have less impact on the
employees.

4INTRODUCTION TO HUMAN RESOURCES
References
Alshmemri, M., Shahwan-Akl, L., & Maude, P. (2017). Herzberg’s two-factor theory. Life
Science Journal, 14(5), 12-16.
Nguyen, T. (2019). Why it’s a big deal when airline workers strike. Vox. Retrieved 6 March
2020, from https://www.vox.com/the-goods/2019/9/11/20860891/british-airways-history-
worker-strikes.
Topham, G. (2019). Why are British Airways pilots going on strike for the first time?. the
Guardian. Retrieved 6 March 2020, from
https://www.theguardian.com/business/2019/sep/06/ba-strike-4300-staff-to-take-part-in-
airlines-first-ever-pilot-walkout.