The boss of the Unite union has joined calls for the UK
government to provide more financial support for the country¡¯s aviation sector,
proposing a ¡°radical blueprint¡± for how the industry should operate after the
coronavirus pandemic is under control.
General secretary Len McCluskey has written to chancellor
Rishi Sunak and transport secretary Grant Shapps outlining the steps he
believes need to be taken to secure the long-term viability of the UK aviation
industry. With industry bodies estimating that airlines will not see anything
like the normal number of passengers until the second half of 2021,
McCluskey said it is inevitable that companies will need financial support from
the government.
But he added that Unite believes the sector will have to
change the way it operates to have a viable future and to meet climate change
challenges. He has therefore set out a number of actions the government will
need to take when providing financing ¨C whether through loans or stakes. He
said he has based his blueprint on those being discussed in the European Union
and that it is comparable to the industry bailout provided by the US government
as part of its CARES Act.
McCluskey said: ¡°What is clear is that the UK aviation sector
will not simply fully restart once the lockdown ends and if we are to have the
viable industry that the UK needs and which provides hundreds of thousands of
jobs, further radical action is required.
¡°The UK¡¯s aviation sector can and will have a viable future,
but it is going to look very different to what existed prior to the pandemic.
The government has a key strategic role in shaping the future of what is and
should remain a world-class sector.¡±
So far, chancellor Sunak has said he will only consider providing financial aid to airlines on a case-by-case basis after they have explored all other options, such as raising additional capital from shareholders. That statement came after the government had hinted that it was looking at providing an industry-wide bailout.?
While he believes the government should deliver that package of aid, McCluskey said all loans and stakes agreed should be fully
repayable and that companies participating in the scheme should be prohibited
from paying dividends, undertaking share buybacks, or capital contributions
until 12 months after the money is fully repaid.
Furthermore, he is calling for all elements of executive pay
to be capped and for employment terms and conditions to be protected, with any
reduction in workforce restricted to 10 per cent or less.
He said support should only be offered to companies that are
either suffering losses, acting to consolidate their business, or are
attempting ¡°to rescue or replace a part of the sector that no longer exists¡±.
He also wants smaller airports and air traffic control centres, as well as
specific routes within the UK, to be publicly financed in order to retain "vital" connectivity.
Lastly, he believes the government should only provide
financing on the condition that recipients have a clear action plan to become
more efficient and offer more environmentally sustainable operations.
Commenting on steps the government has already taken to
support struggling airlines and airports, McCluskey said: ¡°The action of the
government in furloughing workers is an excellent first step in preserving jobs
and companies in the aviation sector but further radical action is needed to
secure its future.
¡°As an island nation, aviation is crucial to the UK for
trade, business and maintaining social and family networks. Even during the
Covid-19 pandemic, aviation has continued to play a vital role delivering
critically needed supplies such as medicines as well as repatriating citizens
from around the world.¡±
He added ¡°In its election manifesto the government committed
to enhancing regional connectivity. Unite believes that pledge needs to be
honoured as well as ensuring international connectivity is maintained.¡±
The Unite union represents more than 60,000 UK workers in the aviation sector.