Perusing the the company intranet on the subject of 'Voluntary Unpaid Work' reveals that only basic pay is affected. Allowances, shift pay & benefits etc are still paid.
Back to BA Maintenance. I stand by my belief that no-one would set it up as it now is, given a clean sheet of paper and the task of creating an efficient maintenance structure for BA.
Perhaps. Where would you put this efficient maintenance structure though? LHR certainly doesn't have any room.
BA pilots offered shares for pay cut deal
Wed Jun 17, 2009 7:02pm EDT
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LONDON, June 18 (Reuters) - British Airways (BAY.L) pilots are set to vote on a deal under which they would receive shares in the company in return for a pay cut, the latest measure to help the airline through the economic downturn, a union said on Thursday.
Pilots are being urged to accept a draft pay and productivity package agreed between the British Airline Pilots' Association (BALPA) and BA, designed to save the company 26 million pounds ($42.28 million) annually.
It follows an earlier appeal by BA, which reported a record annual loss last month, for staff to work for free or go on unpaid leave for a period.
"The pay and productivity package will help BA get through the current economic downturn whilst, for the first time, giving pilots the mechanism to take a real share in the wealth they will help to create," BALPA said in a statement.
Under the union recommendation, pilots would see their pay cut by 2.61 percent and their flying time allowances reduced by 20 percent from October.
Pilots' hours would increase and there would be shorter turnaround times on short haul flights.
Nearly 80 pilots' jobs would go through voluntary redundancy.
If certain company targets are met, pilots will be eligible to receive BA shares worth 13 million pounds in 2011, which they must hold for three years before selling.
BALPA members, who make up about 95 percent of BA's 3,200 pilots, are due to vote during the next three weeks.
A spokesman for BA said in a statement it was "pleased" to have reached an agreement with BALPA.
On Tuesday, the company said it had asked for volunteers among its British-based employees to go on unpaid leave or carry out unpaid work for between a week and a month.
Chief Executive Willie Walsh, who earned 735,000 pounds a year and who has promised to work for nothing in July, said the idea was part of BA's across the board cost-cutting measures.
BA, Europe's third-biggest airline by revenue, posted annual operating losses of 220 million pounds and scrapped its dividend in May, saying it had suffered from a downturn in air travel and forecast no immediate revival.
Walsh has said there would be more redundancies after reducing BA's headcount by 2,500 since March last year.
(Reporting by Avril Ormsby; Editing by Bernard Orr)
..........pilots will be eligible to receive BA shares worth 13 million pounds in 2011, which they must hold for three years before selling.
WTF! Why haven't we been offered this as well?
TURIN...get on wiki and amend it......I've just been wandering around TBJ/TBK looking for these elusive 'component and engine workshops'.
The pilots are not getting a big handout of shares in 2011 unless some very stringent criteria are met. If profits are not good enough, NO shares will be available! Simple!
And the deal was negotiated by giving up, amongst other things, some basic pay, some allowances and incorporating some redundancies. Are you willing to do the same?
And to be sure, Pilots deal will prob include, should any other section agree a better deal in anyway, Pilots deal will match or better it.
We all need to remember, flying staff who are in APS/NAPS(pensions) are on a better deal than ground staff, so the flying staff could be more proactive in changes because they will be playing the long game and looking after their pensions.
Back in April 2007, the company failed to make the pensions fair and did not adopt the average earnings pension plan, now the company has loads of different staff with different pension plans/standards, this was always going to cause more problems in the future.
. BA pilots 'prepared to strike'?
.
Lets wake up and enjoy the coffee !!!!!!!!
Actually had a pension brief yesterday. Anybody who thinks the APS is doing ok..Think again! Lots of people drawing benefit, not many paying in, poor investments, plus that thieving basteward of a government and it's now in deep sh1t.
Oh! and the goverments PPF or whatever they call it does NOT have enough funding to support it or any other fund!
Gas Paths words on his pension briefing echo my thoughts,
However as I understand it pensions in payment are ring fenced, ie money is earmarked outside the fund for retirees. However this does not apply to any future indexing.
So yes I expect even APS to be in deficit, but of course NPS must be in an even worse state. I believe this total deficit to be circa stg 3B.
However if BA does decide to close NAPS completely at least they start to crystalise the loss and please the city. This may? allow them to borrow their way out of this crisis.
They are still liable for outstanding pension debts but this could be spread over many years, (approx 50% in years of the last claimant)
However if they go bankrupt, this will allow them to escape this committment, as the government pension protection kicks in, This does have an upper limit stg 29K I think & indexation of 2.5% max
As I said earlier I don't think the goverment scheme has enough funding.
Slight thread creep...I believe that a previous post suggested BA has two pension schemes - not correct. There are three: APS, NAPS and good old BARP(of which I'm a member). I must admit that when I hear (is this rumour only or is there any truth in these numbers?) of APS retirees (ex captains) enjoying 6 figure pensions I do feel somewhat green eyed when I look at what I'm likely to be surviving on down the line. I confess to knowing v little about pension fund mgmt but it strikes me as improbable to say the least that there is no connection between the generous retirement benefits available to APS members and the NAPS funding issues and poor level of benefits available in BARP.
BARP is a defined contribution scheme and apart from the agreed payments by BA into the scheme for each staff member there is no further liability.
Not the case with APS & NAPS which are defined benefit schemes. BA is the "lender of last resort" to these schemes and unfortunately has built up huge liabilities.
They have paid and are still paying huge sums to try to meet their obligations. Without these it is possible the stg 401M loss last year may not have occured.
Big Hilly - not entirely in so much as the FUNDING issues relating to APS/NAPS have a direct bearing on the financial state of the company at the moment ............
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