The combined impact of recession and intensified competition as a result of European de-regulation led to important shifts in business strategy with contrasting implications for its staff, an approach that has, with some modifications, continued until the present day. BA has realized that the competition in the airline industry is growing as the globalization and privatization policies have opened the limits of sky widely and international air carriers started to intrude into the territories of BA. As a result of that, BA decided to adopt the merger policies to strengthen their business prospects. In November 2009, BA reached an agreement with Iberia and both the companies decided to merge together to form a single company. The merger between BA and Iberia resulted in the creation of world’s third-largest airline in terms of annual revenue. The merger was confirmed in April 2010 and it is expected that it will take effect from the end of this year. “Iberia Airlines appoints its chairman, Antonio Vazquez Romero as the new chairman of International Airlines Group (IAG), the new company formed under the merger agreement between Iberia and British Airways (Goldstone, 2010)
‘Employee relations’ in BA is a much debated topic in UK now. Many people believe that BA could have improved their relations with the employees and sustain its identity as a national icon, even amidst stiff competition. Many contextual factors affected the employee relations in BA. Moreover, the employee relations in BA have made lot of impacts in the UK employment sector also. This paper critically analyses the above aspect with the help of the case study provided about British Airways.
If employee relations is understood as an arena in which the contest between the pursuit of a market society and the defence of the principles of moral economy is played out, then it is impossible to separate market from nonmarket relations, economy