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BA still faces threat of strikes | BA still faces threat of strikes |
(2 days later) | |
British Airways has averted the threat of a strike by cabin crew but still faces the threat of industrial action. | British Airways has averted the threat of a strike by cabin crew but still faces the threat of industrial action. |
The GMB union is angry about BA's offer to reduce its pension deficit, saying its members have lost out in efforts to resolve the firm's pension problems. | The GMB union is angry about BA's offer to reduce its pension deficit, saying its members have lost out in efforts to resolve the firm's pension problems. |
GMB, which has 4,500 members at BA, is holding a consultative ballot on the pension reforms on 9 February. | GMB, which has 4,500 members at BA, is holding a consultative ballot on the pension reforms on 9 February. |
Members are advised to reject BA's offer and if they do, a second ballot on industrial action will be held. | Members are advised to reject BA's offer and if they do, a second ballot on industrial action will be held. |
Members of GMB tend to work as ground or check-in staff and are among the lower-paid employees at BA. | |
"My members have had to take a disproportionate amount of the pain compared with the higher paid workers within the airline," GMB official Gary Pearce said. | "My members have had to take a disproportionate amount of the pain compared with the higher paid workers within the airline," GMB official Gary Pearce said. |
'Sacrifices' | 'Sacrifices' |
Despite agreeing a deal on pay and sickness leave for cabin crew, BA remains under pressure over plans to cut its £2.1bn pension shortfall. | Despite agreeing a deal on pay and sickness leave for cabin crew, BA remains under pressure over plans to cut its £2.1bn pension shortfall. |
BA proposes raising the retirement age to 65, although staff can choose to increase their pension contributions from 5.25% to 8.5% if they want to retire aged 60. | |
If staff wish to maintain their current level of benefits and still retire aged 60 they may have to increase their contributions to as much as 11.5% to make up for falling accrual rates, according to trade union calculations. | |
My members have had to take a disproportionate amount of the pain Gary Pearce, GMB | My members have had to take a disproportionate amount of the pain Gary Pearce, GMB |
The GMB points out that ground staff have a smaller proportion of their pay counted towards their pensions than cabin crew and pilots have. | The GMB points out that ground staff have a smaller proportion of their pay counted towards their pensions than cabin crew and pilots have. |
Mr Pearce, who was involved with the negotiations, said he recognised that the pension scheme had a huge deficit and that staff would have to make some sacrifices. | Mr Pearce, who was involved with the negotiations, said he recognised that the pension scheme had a huge deficit and that staff would have to make some sacrifices. |
But he denied that the union had accepted the company's proposals and said it had made it clear that it could not accept the reforms without consulting its members. | But he denied that the union had accepted the company's proposals and said it had made it clear that it could not accept the reforms without consulting its members. |
BA reaction | BA reaction |
BA said it was disappointed by the position taken by the GMB. | BA said it was disappointed by the position taken by the GMB. |
"We have recently concluded 16 months of talks by accepting a collective proposal put forward by the four main trade unions at BA," the company said in a statement. | "We have recently concluded 16 months of talks by accepting a collective proposal put forward by the four main trade unions at BA," the company said in a statement. |
The T&G union has recommended its members accept the pensions offer, which would see BA pay £950m into the scheme in the next three years. | The T&G union has recommended its members accept the pensions offer, which would see BA pay £950m into the scheme in the next three years. |
But T&G members have yet to vote on the proposals. | But T&G members have yet to vote on the proposals. |
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