its entire short haul operation at the airport to the new unit. To attain this goal, BA's management unilaterally imposed the pay scales and terms of the old Dan-Air employment contracts on the entire workforce of its Gatwick-based short haul operation at the beginning of 1993. This effectively cut average pay for everyone by 20%. Management hoped this decision would help bring its short haul operation's costs in line with what Gatwick's revenue environment could sustain to enable it to return to profitability. However, BA's unilateral decision to force everyone working for its short haul operation at Gatwick to take a pay cut caused bitter feelings towards the company, among both former Dan-Air staff as well as BA's existing employees at Gatwick who were already working for its short haul operation there prior to Dan-Air's acquisition. The former, who were now officially members of the BA family, were upset that they did not enjoy the same pay and terms of employment as the other family members who were working for its long haul operation at the same airport as well as those who were based at Heathrow. The latter were equally upset at having their pay and terms of employment downgraded to what they considered the inferior standards of a charter airline, which their employer had saved from bankruptcy at the eleventh hour. The resulting unrest among BA's Gatwick-based short haul staff culminated in an unofficial, one-day strike during the first quarter of 1993. As a result of this unofficial industrial action, BA was forced to reverse its earlier decision to cut its Gatwick-based short haul workers' pay unilaterally. These events had clearly demonstrated the power of BA's unionised workforce. The power of the unions representing the affected workers as well as the entrenched attitudes of the middle management within BA's complex, hierarchical organisation also meant that the airline was unable to win any concessions that would have helped it offset the additional costs it was going to face in its short haul operation at Gatwick against increased labour productivity, in return for not cutting those workers' pay. Therefore, BA's attempt to extend the lower pay scales and less generous terms of employment that prevailed at Dan-Air to align the costs of its short haul operation at Gatwick with the airport's revenue environment eventually turned out to be a costly failure. BA's failure to simplify its complex, hierarchical organisation to