BMI to shed 600 more jobs and close final salary pension scheme

Struggling airline British Midland (BMI) has announced 600 redundancies and the closure of its final salary pension scheme to existing members.

The move forms part of a cost-cutting strategy targeted at keeping the company afloat. It had already announced that 25%, or 158 jobs, would go.

In its most recent financial accounts, BMI warned that it might not be able to continue as a going concern next year unless it raised £190m in additional financing.

Announcing the move to cut 13% of the 4,470 workforce, BMI warned that further job losses might be necessary. Brian Boyd, national officer for civil aviation at the Unite union, said: “We understand the need to cut costs, but job losses seem to be the kneejerk reaction. To cut jobs so close to Christmas is at best insensitive.

“Unite met with BMI and will continue to do everything possible to reduce the need for compulsory redundancies and explore options to keep the pension scheme open.”

Comments are closed.