British Airways pilots have been asked to take a pay cut and work extra hours, by their own trade union.
The British Airline Pilots’ Association (BALPA) said the measures would help BA get through the economic crisis and will also give pilots the chance to get shares in the airline.
If they accept, pilots will each take a wage cut of 2.61% on their basic pay in October this year.
In addition they will take a 20% cut in flying time allowances.
These moves will generate £16 million of annual savings.
Another £10 million will be saved by pilots taking on more annual duty hours, delivering shorter turnaround times on short haul flights and through reductions to the crew arrangements on certain long haul routes.
In June 2011, pilots will be eligible to receive BA shares worth £13 million if certain company targets are achieved.
The pilots will individually have to hold these for three years, to June 2014, when they will be free to sell them or hold them. If conditions improve sufficiently the value of the shares could increase in that three-year period.
“This is a unique agreement,” said BALPA General Secretary Jim McAuslan. “We have always said that as a union we would share the pain if our members shared in the gain.
“We have been doing some intensive research and polling over the last two months.
“Our research indicates that BA is facing a real business challenge and this is not the case of the employer crying wolf.
“Our polling of BA pilots over the last two months indicates the approach they want their union to take in responding to that challenge. We believe we have delivered on that and are therefore hopeful for a strong Yes vote.
“The package also allows for up to 78 voluntary pilot redundancies as a result of changes to productivity. There will be no compulsory redundancies as part of this package"
The package will be put to the vote of all BA pilots who are members of BALPA.
There are 3,200 pilots in the airline and 95% of them are BALPA members.
Voting forms are expected to go out this week, with a three-week voting period.
“This is groundbreaking and is a reflection of the unprecedented trading environment,” added McAuslan.
“BALPA recognises that the potential for significant reductions in the flying programme due to BA’s intention to ground up to 16 aircraft may yet lead to further challenges over pilot surpluses.
“That is a challenge that we shall rise to, if it occurs. But BA pilots by themselves will not deliver the change needed to see BA through this downturn. We hope that everyone in the company will do their bit so that we all come through fit to thrive in this toughest of market.”
Last week BA asked staff in the UK to volunteer to take up to one month’s unpaid leave or work unpaid for that time.
By Bev Fearis
