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Unions attack BA pension plan
BA is facing a battle with unions over its plans to raise the retirement age of its cabin crew and pilots.
Under the proposals, pilots will work until the age of 60 with cabin crew carrying on for a further five years. Both currently retire at 55.
The move is designed to plug a £2 billion black hole in BA’s retirement fund.
As a sweetener, chief executive Willie Walsh said the airline was prepared to inject a one-off sum of £500 million into its pension fund, but only if the 47,000 workers accept lower company contributions and a cap on allowances.
Union however attacked the plans, branding them “unacceptable”, and according to reports, have threatened a summer of disruption.
General secretary of pilots union Balpa was quoted as saying: “In terms of health and flying capability, continuing beyond 55 is not an issue. The issue around 55 is a contractual one. It’s what pilots have signed up to.”
The Transport and General Workers Union (TGWU) national officer Brendan Gold added: “BA is a profitable company, not one in crisis. It must be remembered the pensions are deferred earnings.”
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