Unions are demanding urgent talks over plans by British Airways to make changes to its pension scheme.
BA claims its new pension arrangements ‘will improve benefits for the majority of UK colleagues’, but Unite and GMB say thousands of long serving staff now face uncertainty in their retirement.
"Unite and GMB within British Airways must express on behalf of our members and in the strongest possible terms, both our dismay and bitter disappointment at the news that British Airways has announced its intention to close its main pension scheme," said Unite.
"Our team of financial analysts has worked tirelessly with the airline over the last few months to explore ways to keep the pension scheme open and secure it for the future.
"This announcement sadly confirms that our advice has gone unheeded and that we have been unable to convince British Airways that keeping the scheme open is the right thing to do, for both the company and its employees.
"Instead of certainty many will now face uncertainty as their retirement approaches. We would expect better treatment of its own staff from such a ‘premium brand’."
"Both unions jointly demand urgent talks to discuss both the impact of this announcement, if a solution can be found and, if not, the consequences the airline may face."
BA said the proposals will be part of a consultation that will include addressing the significant and growing funding deficit faced by the New Airways Pension Scheme (NAPS).
"If the proposals are implemented, NAPS would be closed to future accrual. The proposed changes would help protect the pension benefits NAPS members have already earned and improve the company’s ability to invest in the customer experience," said the airline.
It said if NAPS remained open to future accrual, the cost to the company of providing future benefits to NAPS members could rise to 45% of individual’s pensionable pay in 2018, which is more than four times the typical employer contribution of UK airlines.
