BA pilots union agree pay cuts deal
18.06.09
The British Airline Pilots' Association (BALPA), the union representing pilots, has reached a draft pay and productivity deal with British Airways that would deliver a permanent annual saving program of £26 million. BALPA is recommending proposals, which include pay cuts and longer working hours. In return, pilots will be awarded shares in the airline. The package also allows for up to 78 voluntary pilot redundancies due to changes in productivity, but the union insisted that no redundancies would be compulsory.
Under the deal, BA pilots each take a wage cut of 2.61% in their basic pay beginning in October, and accept a 20% reduction in flying-time allowances. Together, this would generate £16 million in annual savings. In addition the pilots are to increase their annual duty hours, cut turn around times on short-haul flights and reduce flight-crew arrangements on certain long-haul routes. These would generate £10 million in annual savings, BALPA said.
In return, under a long-term share incentive scheme, beginning in June 2011 pilots would be eligible to receive BA shares valued at £13 million if operational and financial targets are met. Pilots would have to hold those shares for three years to June 2014, when they would be free to sell them.
BA continues to talk with the other staff groups, who are said to be not as amenable as the pilots.
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