BMI to cut 150 jobs as accounting moves to India
22.01.06
Airline BMI is to axe more than 150 jobs as part of a cost-cutting move which will involve transferring work to India. It needs fewer staff because of a new computer system in its accounting department.
The airline has recruited Kale Consultants in India to develop and install a computer system in its revenue accounting department, where passenger tickets transactions are processed. It is expected to go live in July. The company said the system would be run from India, and could result in jobs being created there.
The company plans to cut almost a fifth of the workforce from its Castle Donington head office, near Nottingham East Midlands Airport. At the same time it will create 21 posts. Union leaders have reacted angrily, saying the jobs are being transferred to India.
BMI spokesman Jo Tabberer said: 'There will be a net loss of 133 positions. This is due to new technology in ticket transaction processing. Things can be done more efficiently now, and that reduces cost and, unfortunately, reduces manning levels.'
She said that redeployments within the company and voluntary redundancies should result in fewer than 100 compulsory redundancies. Bosses have begun a 90 day consultation with the affected staff and union officials.
Jed Purkis, regional organiser at the GMB union, said moving the jobs to India would create resentment among staff and customers. 'The company that has supplied the computer system is running it from India, meaning the jobs will be replaced by low-cost posts.'
'It would be a gamble on the company's part because of the backlash we have seen against those who export jobs to low-cost countries. Redundancies are expected to begin in July.'
In November, the airline announced it was cutting 185 engineering jobs in its maintenance department at Nottingham East Midlands Airport. BMI employs 4500 people, including 800 at its Donington Hall head office and 500 at Nottingham East Midlands.
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