Financial Times FT.com

British Airways’ lesson on how not to outsource

By Jemima Fitzgerald

Published: August 23 2005 19:26 | Last updated: August 23 2005 19:26

British Airways’ human resources problems have disrupted the travel plans of thousands of its customers. The implications for its reputation and share price are far-reaching. This latest industrial action at BA must have left its management particularly distressed: surely this is somebody else’s battle? The supply of in-flight catering was provided by a third party, so why has an employee dispute in that organisation brought BA’s Heathrow airport operations to its knees?

The unofficial sympathy action by BA’s Transport and General Workers Union staff in support of their 600 colleagues that were sacked by Gate Gourmet reveals how an outsourcing contract can have huge implications for all concerned if not managed properly.

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