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The basic approach and context of relations with employees all across the globe have seen
drastic change in last as much as three years. The shift in the employee relations and its basic
methodology is owed to few significant aspects: ever growing competition, evolution of new and
innovative technologies and escalation of expectations of customers in context of the perceived
and the actually received quality of the provided and offered service at market competitive rates
and at prevailing short charges. The collective approach and framework is now challenged in the
modern economy and recent times. Thus, most of the corporations have started shifting towards
individual approach in their in context of their prior relationships with their employees. Most of
the employers in current time are eager to build faith and better participation of employees
throughout the operations of the business by concreting the business success and urging the
strength and power of better partnerships and their significance.

The aviation industry also shifted their traditional paradigms of maintaining relations with the
employees and took a u-turn in their approach and methodology. The recent and the latest model
of relations with employees in the aviation industry depend upon the structuring the skills in
employees and training of providing excellent customer service by their employees. This detailed
analysis and report depicts the methodology and approach followed by British Airways¶ (BA)
and its effective and efficient relations with its employees. The report comprises of the factors
that will shed light over the issues in the major context like focus over the political, legal, social,
organizational and economical factors.

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There had been many positive advancement and progression in the last few decades owing to the
steps employed by the British government. The substantial and significant reduction in the
number of disputes and quarrels and because of it the reduction in the lost in the number of
working days had been dropped to the minimal stage and extremely low level because of that
positive period (Monger, 2004 p. 241). The chief and the principal goals before the departure
from the prior legislative postures for the Blair¶s government in 1997 were to found and establish
the personal rights and entitlements (Gennard, 2002). There has been an escalating growth in the
employment and application of different processes and methodologies for the maintenance of
relations with the employees because of the reduction in the abstract of joint bargaining. There
has been rapid transformation in collective consultation and methodologies of involving the
employees have earned significant rationale. These methodologies and concepts are basically
two-way communications that could encourage employees to contribute to the information of the
corporation (Gennard, Judge, 1999, p. 153; BA Annual Report 2010, p.41).

The issues of wages and increment in the payment system are the major current menaces and
threats that are usual in United Kingdom (UK). The employment of flexible and semi flexible
arrangements of work and chores in UK is now jeopardizing the altitude of faith and conviction
between the counselors that are usually engaged in the uplift and maintenance of the relations of
employees (Richardson et al., 2005, p.719)

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The ongoing global economic crisis and recent collision of the worldwide monetary currencies is
the prime issue for British Airways. Owing to the economic constraints and the credit crush the
advancement and progression of the global economy has slowed down to as low as 2 percent as
per the evaluation made by IMF. The Euro in comparison to the British pound is appreciating
that is the British pound is depreciating as compared to the Euro all over the globe. This could
affect the frequency and the business of travels and trips as most of the corporations are
decreasing expenses and employing other ways of transportation. In addition, the ever changing
prices of oil and the variable exchange rates will directly influence the relations of the employees
as the corporations in the aviation industry would be bound to adopt the measures for cutting the
related costs and expenses. There would be fierce competition in the aviation industry owing to
the minimal expenditure by the customers (Office of National Statistics 2010)

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The elder population is in large amount in the domain of United Kingdom (UK) which reflects
that the customer proportion of the British airways comprise of the aged ones. Thus population
with the old ages have ample amount of time to assign to spare time activities. As such this is the
only factor that spends customer base of British airways. British Airways could have extended
bargaining power in the long run as an employer since the unemployment is on escalating trend
from last few years (Office of National Statistics 2010).

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The continuous and rapid evolution of innovative technologies always affect the basic traditions
and approaches of the labor skills so much so that it could adversely impact involvement and
participation of human work force for the performance and execution of several chores. The skill
portfolio could create new functions and mechanisms within the corporation after being
modified. This would offer new opportunities for the employees of the organization. The
recurring and repulsive responsibilities could be limited through the employment of innovative
technologies (Gennard et al., 2010). The procedure for handling the baggage is predicted to have
enormous technological modifications (BA Annual Report 2010). There are many reports and
analysis in 2010 including few feasibility studies that have revealed that as much as 30 percent of
the customers that make their purchases via internet are found to use those websites that offer
competitive prices and reduce costs. This is another factor that is responsible for the up gradation
of the awareness and knowledge of the consumers regarding their purchasing parities. British
Airways has to be sharp enough to adopt the modern technological advance but at the same time
they have to be vigilant regarding that portion of the customer base who has not yet shifted to the
latest trends of the market. (Mari, 2009)

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British Airways and its fellow aviation partners and mates could now easily operate without any
hassles among several airports of the European Union (EU) and the United States (US) owing to
the declaration of the µOpen Skies¶ treaty.

If the British Airlines really are in quest of avoiding the allegations of the aviation industry and
continue the operations without any interruption then the airways have to work on their
prescribed relationships with their employees and related trade unions (guardian.co.uk, October
2010). The feasible alternatives and the recommended solutions for the British Airways are to
work on few very crucial and critical measures. These suggestions include capitalizing on new
opportunities and adopting safeguard measures against the market and competitive threats.
Further, economic constraints, strict and stern aviation regulations, ever escalating competition,
enhanced consumer expectations and many others are the recent challenges for the British
Airways.

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Globalization in the Aviation industry is dually impacted by the current globalization since the
product markets are affected due to the strategic alliances and the labor markets are impacted
because of the rapid dispersion of the employed labor to various sectors and domains of the
globe (Blyton et al., 1998.) The former factor has a lesser affect on the relationship with the
employees of the organization but the second facet impacts considerably the employee relations
since many studies and surveys have divulged that the µout-basing¶ is the prime issue faced by
the aviation industry these days. These aforementioned issues and problems depend upon the
circumstances and occurring events that differentiate with respect to the nature of the employees
for them being the contract person or the permanent one (guardian.co.uk March 2010).

The level of competition has been enhanced by the freedom offered by the United Kingdom¶s
government regarding the encouragement of the aviation industry for its improvement and
betterment which increased new doors of opportunities for the other global airways to jump into
the market. Hence, the charges and the prices of the aviation services have been shifted
drastically owing to the increase and fierce competition. As such, the lavish airlines that were
prevailing in the United Kingdom, finally, transformed to a mere low cost airlines because of the
prevailing price war between the different global airlines and the reduction in their respective
airfares (British European becoming FlyBE).

There is a broad division that has been made evidently visible by the current segmentation of the
aviation market which includes the customers that are really very sensitive to the prices and the
airfares and there are others who prefer to have excellent services regardless of the charged
airfares thus British Airways have now adopted different business strategy so that it could cater
to the needs and desires of the affluent and wealthy clients (BA Annual Report 2009).
The operating costs and the related expenses are one of those unsolvable issues that have still
traumatized the aviation industry and its associated players. The core dilemma in the whole issue
is that the wages of the employees always became victim of the foremost cost reduction system
owing to which there are many events in which employees have to negotiate their salary in
negative terms and there are more frequent pay-freeze incidences (Doganis, 2001; BA Annual
Report 2009).

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ëurrently, British Airways has transformed itself from the constitution oriented corporation to a
consultation form of organization (Purcell, 1987). There had been several studies regarding the
perception of the managers about the relations with employees at British Airlines which have
been regarded as simple and practical (Blyton and Turnbull 1998). The core issue is
miscommunication due to which employees have created their own unions against the
organization management (Ross, 2004, p.69). However, the new approach of the business
management at British Airways has started prioritizing the employee unions as the strategic
dialogue partners (Ross, 2004, p. 69.)

The intensive and comprehensive workshops and training programs initiated by the management
targets towards more skilled employees (BA Annual Report 2009, 2010). The aforementioned
tensions between the management and the employees give rise to ineffective and unproductive
working environment (Telegraph.co.uk 2008).

The decision of the management to employ the less experienced and lower skilled work staff has
also shocked the employees which is the measures taken up by the management for the reduction
of extra costs (Blyton et al. 1998). The management is not yet able to resolve the conflicts and
issues with the employees and the public is found to exaggerate these disputes (guardian.co.uk
October 2010). The recent tricks in this regard are to adopt the other agreements by the BA
management such as ëity Flyer Express due to which there is a considerable reduction in costs
(Doganis, 2001).

The aforesaid tactics have escalated communication and participation of the employees in the
strategy building procedures and related processes (ëassani and Kemp 2003, p. 45).
There had been other serious issues within the employee union and the management that
discriminates the cabin crew and pilots who did not actively participate in the strikes and other
measures (guardian.co.uk, March 2010).

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British Airways has to revamp its business strategy for getting into the top-rated airlines which
includes getting excessive cooperation of its human resource as the prime step. The rigorous
training and mentoring of the employees would help the airline to retain its customers. The
airline should continue to reward its efficient labour force for their achievements (as stated in BA
Annual report 2009, p. 39). Reducing the expenses is not the only vital solution for the airlines,
but there should be a substantial involvement and participation of the employees at every stage
for ensuring the better performance of the business.

Actually, the British Airlines is in quest of forming a corporate culture where employees could
become an active member in the setting strategic goals (BBë news 2010). The modification in
the business strategy should encompass more and more effective communication (BA annual
report, 2010, p.40). Therefore, the British Airlines should continue following the change
methodology to improve and enhance its operations and the customer base.