Company News In Brief
British Airways burning through cash
The boss of British Airways (BA) said its parent company IAG was burning through 178 million pounds (about N$3.8 billion) a week, and could not guarantee its survival, prompting him to urge unions to engage over 12 000 job cuts.
The airline came under heavy attack from lawmakers in parliament on Wednesday, who accused it of taking advantage of a government scheme to protect jobs while at the same time announcing plans to cut its workforce by 28%.
Planes were grounded in March due to coronavirus restrictions, forcing many airlines to cut thousands of staff as they struggle without revenues. Airlines serving Britain now face an additional threat from a 14-day quarantine rule.
In an internal letter to staff seen by Reuters, Alex Cruz, BA CEO, said the job losses were necessary as IAG's cash reserves would not last forever and the future was one of more competition for fewer customers. BA also wants to change terms and conditions for its remaining workers to give it more flexibility. Cruz said IAG, which also owns Aer Lingus, Iberia and Vueling, was getting through 178 million pounds a week, meaning that it could not just sit out the crisis. The group had 10 billion euros (N$189.6 billion) of liquidity at the end of April.
"BA does not have an absolute right to exist. There are major competitors poised and ready to take our business," Cruz said in the letter. He urged two unions which represent cabin crew and other staff, GMB and Unite, to join in discussions to mitigate proposed redundancies.
Pilots union BALPA is "working constructively" with the airline, he added. Cruz also joined other airline bosses in criticising Britain's quarantine rule, due to come into effect on 8 June, calling it "another blow to our industry".
NAMPA / REUTERS
China says 95 foreign airlines can apply
Good news for international aviation was welcomed when China's aviation authority said on Thursday that 95 foreign airlines that have suspended services to China can now apply to resume flights, according to the agency's official newspaper. It estimated the number of international flights would increase by 50 from 8 June to 150 per week.
An average of 4 700 passengers are expected to arrive per day versus around 3 000 now, said the website of caacnews, the official newspaper for the Civil Aviation Administration of China.
NAMPA/ REUTERS
Tata Steel workers at Dutch plant vote to strike
Employees at Tata Steel's Dutch plant in IJmuiden on Thursday voted to go on strike over planned job cuts and the plant's further integration with Tata's British operations, Dutch news agency ANP reported. The unions could not be reached immediately to confirm that a strike has been approved or when it will take place.
The Dutch unions are upset over what they say are plans by the company to cut 1 000 out of 9 000 jobs in the Netherlands. Tata Europe says it does not plan forced redundancies.
NAMPA / REUTERS
Lebanon shelters abandon Ethiopian domestics
Lebanon has provided temporary shelter for 35 homeless Ethiopian domestic workers who had camped outside their consulate after being abandoned by employers hit by the country's worsening economic crisis, the labour ministry said on Thursday. "We provided this shelter to get them off the street and we are now in touch with international agencies and the Ethiopian consulate to look for a long-term solution," ministry spokesman Hussein Zalghout told AFP.
Lebanon is in the midst of its worst economic crisis since the 1975-1990 civil war, compounded by a lockdown to stem the spread of the coronavirus.
Some Lebanese families have started paying their home help in depreciating local currency, while others have stopped paying at all, with increasing reports of domestic workers being thrown onto the street.
Employers "who left migrant workers stranded in front of the consulate will be punished by law and will be placed on a blacklist that prevents them from hiring foreign domestic workers again," the ministry spokesman said.
He said the ministry would press employers to settle all outstanding payments they owe their domestic workers before they are repatriated, otherwise they will be punished by law. Last month, the General Security agency said it had started organising repatriation flights for those who wished to return home. On 21 May, dozens of Ethiopian workers were repatriated, Lebanon's state-run National News Agency reported.
A quarter of a million migrants are employed as domestic workers in Lebanon, the large majority of them Ethiopian and many in conditions that have been condemned by human rights groups and their own governments. A sponsorship system known as "kafala" leaves maids, nannies and carers outside the remit of Lebanese labour law and at the mercy of their employers, some paid as little as US$150 a month (about N$2 500) before the downturn.
NAMPA / AFP
Temenos leads banking software
Temenos, the banking software company, has been listed as the industry's only 'Global Power Seller' in Forrester's prestigious Global Banking Platform Deals Survey 2020, with a 30% increase in new named deals. Temenos landed more new global banking deals than any other provider in 2019, as stated in the Forrester report. Temenos was also named 'Top Global Player' in the survey, based on combined deals, which represent a vendor's ability to enhance its market position and keep creating value for its existing customers.
With 177 deals signed with new and existing customers, Temenos maintained its position at the forefront of the table.
Max Chuard, Temenos’ CEO, said: "The Temenos deal figures are higher than the total of new named signings of the next two vendors combined. We believe that these results are a validation of our relentless investment in innovation, product strength, and customer successes. The Covid-19 pandemic has accelerated the need for digital banking and cloud/SaaS models. For banks to succeed in the 'new normal', we firmly believe that they must embark on an end-to-end digital transformation."
Jost Hoppermann, vice president and principal analyst at Forrester, wrote in the report: "The transformation imperative in banking needs imminent execution. A flood of business and regulatory requirements has continued to drive change in the banking industry that in turn changes its face rapidly, albeit still not quickly enough, as there is a growing gap between leaders and laggards. These laggards need to complete digital transformation, in fact, they need to finalise it within the next five to six years at the very latest, to avoid dying an analogue-business death."
NAMPA / AFP
The boss of British Airways (BA) said its parent company IAG was burning through 178 million pounds (about N$3.8 billion) a week, and could not guarantee its survival, prompting him to urge unions to engage over 12 000 job cuts.
The airline came under heavy attack from lawmakers in parliament on Wednesday, who accused it of taking advantage of a government scheme to protect jobs while at the same time announcing plans to cut its workforce by 28%.
Planes were grounded in March due to coronavirus restrictions, forcing many airlines to cut thousands of staff as they struggle without revenues. Airlines serving Britain now face an additional threat from a 14-day quarantine rule.
In an internal letter to staff seen by Reuters, Alex Cruz, BA CEO, said the job losses were necessary as IAG's cash reserves would not last forever and the future was one of more competition for fewer customers. BA also wants to change terms and conditions for its remaining workers to give it more flexibility. Cruz said IAG, which also owns Aer Lingus, Iberia and Vueling, was getting through 178 million pounds a week, meaning that it could not just sit out the crisis. The group had 10 billion euros (N$189.6 billion) of liquidity at the end of April.
"BA does not have an absolute right to exist. There are major competitors poised and ready to take our business," Cruz said in the letter. He urged two unions which represent cabin crew and other staff, GMB and Unite, to join in discussions to mitigate proposed redundancies.
Pilots union BALPA is "working constructively" with the airline, he added. Cruz also joined other airline bosses in criticising Britain's quarantine rule, due to come into effect on 8 June, calling it "another blow to our industry".
NAMPA / REUTERS
China says 95 foreign airlines can apply
Good news for international aviation was welcomed when China's aviation authority said on Thursday that 95 foreign airlines that have suspended services to China can now apply to resume flights, according to the agency's official newspaper. It estimated the number of international flights would increase by 50 from 8 June to 150 per week.
An average of 4 700 passengers are expected to arrive per day versus around 3 000 now, said the website of caacnews, the official newspaper for the Civil Aviation Administration of China.
NAMPA/ REUTERS
Tata Steel workers at Dutch plant vote to strike
Employees at Tata Steel's Dutch plant in IJmuiden on Thursday voted to go on strike over planned job cuts and the plant's further integration with Tata's British operations, Dutch news agency ANP reported. The unions could not be reached immediately to confirm that a strike has been approved or when it will take place.
The Dutch unions are upset over what they say are plans by the company to cut 1 000 out of 9 000 jobs in the Netherlands. Tata Europe says it does not plan forced redundancies.
NAMPA / REUTERS
Lebanon shelters abandon Ethiopian domestics
Lebanon has provided temporary shelter for 35 homeless Ethiopian domestic workers who had camped outside their consulate after being abandoned by employers hit by the country's worsening economic crisis, the labour ministry said on Thursday. "We provided this shelter to get them off the street and we are now in touch with international agencies and the Ethiopian consulate to look for a long-term solution," ministry spokesman Hussein Zalghout told AFP.
Lebanon is in the midst of its worst economic crisis since the 1975-1990 civil war, compounded by a lockdown to stem the spread of the coronavirus.
Some Lebanese families have started paying their home help in depreciating local currency, while others have stopped paying at all, with increasing reports of domestic workers being thrown onto the street.
Employers "who left migrant workers stranded in front of the consulate will be punished by law and will be placed on a blacklist that prevents them from hiring foreign domestic workers again," the ministry spokesman said.
He said the ministry would press employers to settle all outstanding payments they owe their domestic workers before they are repatriated, otherwise they will be punished by law. Last month, the General Security agency said it had started organising repatriation flights for those who wished to return home. On 21 May, dozens of Ethiopian workers were repatriated, Lebanon's state-run National News Agency reported.
A quarter of a million migrants are employed as domestic workers in Lebanon, the large majority of them Ethiopian and many in conditions that have been condemned by human rights groups and their own governments. A sponsorship system known as "kafala" leaves maids, nannies and carers outside the remit of Lebanese labour law and at the mercy of their employers, some paid as little as US$150 a month (about N$2 500) before the downturn.
NAMPA / AFP
Temenos leads banking software
Temenos, the banking software company, has been listed as the industry's only 'Global Power Seller' in Forrester's prestigious Global Banking Platform Deals Survey 2020, with a 30% increase in new named deals. Temenos landed more new global banking deals than any other provider in 2019, as stated in the Forrester report. Temenos was also named 'Top Global Player' in the survey, based on combined deals, which represent a vendor's ability to enhance its market position and keep creating value for its existing customers.
With 177 deals signed with new and existing customers, Temenos maintained its position at the forefront of the table.
Max Chuard, Temenos’ CEO, said: "The Temenos deal figures are higher than the total of new named signings of the next two vendors combined. We believe that these results are a validation of our relentless investment in innovation, product strength, and customer successes. The Covid-19 pandemic has accelerated the need for digital banking and cloud/SaaS models. For banks to succeed in the 'new normal', we firmly believe that they must embark on an end-to-end digital transformation."
Jost Hoppermann, vice president and principal analyst at Forrester, wrote in the report: "The transformation imperative in banking needs imminent execution. A flood of business and regulatory requirements has continued to drive change in the banking industry that in turn changes its face rapidly, albeit still not quickly enough, as there is a growing gap between leaders and laggards. These laggards need to complete digital transformation, in fact, they need to finalise it within the next five to six years at the very latest, to avoid dying an analogue-business death."
NAMPA / AFP
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