BA's two proposals
Shy Lion,
Here is the July Offer to CC by BA followed by the Oct 6th amended offer which includes the Nov 16th change to On-board crewing:
MOA - Memorandum of Agreement
This Agreement is made between British Airways and Unite in relation to all cabin crew employed as at the date of this Agreement in all fleets ("Cabin Crew").
British Airways and Unite recognise that in order to secure BA's future and that of its employees, BA must take steps to restructure and permanently reduce its cost base.
These changes must deliver genuine, sustainable and long-term productivity improvements in the way we currently work. Both parties recognise the need for continued investment in the products that matter to our customers.
Increased competition requires that BA must be able to operate flexibly in order to improve our current productivity levels, to adapt to changing business needs going forward, and to remain competitive.
BA and Unite agree to the terms set out in this Agreement in relation to all Cabin Crew in order to achieve those aims.
Unless otherwise stated, the terms set out in this Agreement (excluding Annexes 1, 2 and 3) are intended to have contractual effect as between BA and the relevant Cabin Crew. It is not intended that the terms set out in Annexes 1, 2 and 3 will have contractual effect either between British Airways and Unite, or British Airways and Cabin Crew.
This Agreement supersedes (replaces) any other reference to these specific items in any other agreement or document. Such terms will no longer have effect and are replaced by the terms of this Agreement.
Pay
It is agreed that:
• There will be no increase in basic pay or variable pay for Cabin Crew for the next two years (i.e. until 28th February 2011).
• There will be a freeze in incremental pay rises with effect from 1 January 2010 until 31 December 2010 for those earning a basic salary of £14,500 per year or more (or the equivalent pro-rated salary for part-time Cabin Crew).
• The next pay review will be in February 2011 when BA will review basic pay, variable pay, and incremental pay increases, taking into account all relevant circumstances, including but not limited to, company performance and employee productivity.
Operational Recovery Procedure
The current Worldwide Disruption Agreement will be replaced with immediate effect with the following Operational Recovery Procedure which will apply to all fleets.
The overriding principle of the Operational Recovery Procedure is to put the ‘Customer first‘ in the event of any disruption to British Airways' planned schedule or other operations. This requires all employees and unions to adopt a flexible approach to their normal working arrangements in order to resolve any disruption to operations as soon as possible.
BA may invoke the ‘Operational Recovery Procedure‘ at any time when BA considers that planned schedules or other operations have been disrupted for any reason. Once invoked, and notwithstanding any other contractual provisions otherwise applicable to unions or Cabin Crew, British Airways may take such steps, and require Cabin Crew to take such steps and perform such duties, as it considers appropriate to resolve the disruption. Such steps may include, but are not limited to, the following:
• Re-plan and re-route services to repatriate our Customers.
• Cabin Crew may be required to vary their scheduled roster and to undertake such additional or different duties as may be required to continue to provide our services.
• Use 24 hour availability with 12 hours' notice to call forward Cabin Crew in order to gap fill.
• Restrict Eurofleet Cabin Crew from requesting 18 hours off in the event of a delay.
• Contact Cabin Crew at home to advise of a roster changes during disruption.
• Introduction of Willing-to Work.
• Operate with reduced crew complements.
In implementing the Operation Recovery Procedure BA will take reasonable steps where practicable to minimise the impact on Cabin Crew's normal working patterns. The terms of Cabin Crew's contracts will be deemed to have been varied temporarily during the period of disruption in order to comply with such steps as BA requires pursuant to this Operational Recovery Procedure. BA will continue to comply with scheme limits.
The use of the Operational Recovery Procedure in respect of any particular disruption will be reviewed, jointly with the Trade Unions, at the appropriate fleet Steering group after the period of disruption.
Crew complements
BA and Unite agree that BA has the right at its sole discretion to vary on a temporary or permanent basis the crew complements for all aircraft at any time and relevant service standards. BA will consult with Unite in relation to any proposed changes to crew complements unless such consultation is impracticable for operational reasons, in which case BA will inform Unite of such changes as soon as reasonably practicable.
Notwithstanding the terms of Section 9 of the Worldwide Scheduling Agreement, Section 7 of the Eurofleet Cabin Crew Manual, and any other applicable existing terms, Cabin Crew may be required to work in a higher or lower grade as appropriate as a result of any change to crew complements and related service standards. Cabin Crew will comply with such service standards and guidelines applicable to the relevant flight, as varied by BA from time to time.
Annex 1 details changes to crew complements which BA will introduce with effect from 1 September 2009.
Ground Productivity
Unite acknowledges the need to improve ground productivity so as to achieve greater general crew productivity, whilst minimising the impact on BA's customers. BA and Unite agree to vary the Worldwide Agreement, Eurofleet Agreement, and any other relevant existing terms as set out below. BA will continue to comply with scheme requirements.
Worldwide – Rest Downroute
• Worldwide Cabin Crew will no longer be entitled to 2 local nights rest on any non-long range or long-range routes.
Early Day report
Early day report will be amended to allow a trip to be allocated from 06:01 onwards.
Eurofleet - Finish Time
• The latest planned off duty time for Eurofleet Cabin Crew prior to a day off shall be extended to 22:00hrs for all blocks of 5 days or less, including but not limited to, Cabin Crew on 'standby' or 'available' status.
Eurofleet - Reduction in Days off (variable days off – bidding group)
• The current entitlement to days off for all Eurofleet Cabin Crew in the bidding group will be replaced with a flat entitlement of 9 planned days off each calendar month for full time cabin crew (pro-rated for part time Cabin Crew).
Integrated Approach
Unite acknowledges that BA proposes to introduce a new contract and new terms and conditions, for all newly-recruited main crew and all future promotions to senior grades. Such terms will be notified to Unite in due course. For the purposes of information only, the terms which BA currently proposes to introduce are set out in Annex 3. This term is not intended to have contractual effect.
Fleet Transfers and Opportunities
Unite acknowledges that BA must make significant headcount reductions. BA proposes to follow the procedure set out in Annex 2 in trying to achieve those reductions. For the avoidance of doubt, that process is not intended to have contractual effect between BA, Unite and the relevant employees.
Euro fleet productivity
British Airways are willing to explore with the trade union the future use of the current B767 aircraft on Worldwide moving to Euro Fleet to be operated under a new Euro Fleet agreement. This term is not intended to have contractual effect.
New Fixed Monthly Duty Payment replacing variable allowances
- A fixed element of pay will be introduced to be paid as part of the monthly pay, replacing variable allowances.
- The payment will be subject to a deduction calculated on a daily basis for all non flying related duties and sickness.
- The additional payment will replace the following;
World Wide
Long Range Premiums (box payments)
Back To Back Payments
Destination Payments
Extra Time Payments
Time Away Allowance
Telephone Allowance
Eurofleet
Long Day Payments
Extra Time Payment
Base Early Report
Telephone Allowance
Annex 1
Crew Complements
The following changes to crew complements will be introduced with effect from 1 September 2009:
• One purser position will be removed from all Worldwide flights (747, 777, 767). Worldwide CSDs will be included in the customer service routines.
• One purser position will be replaced with a main crew member on 777 3-class aircraft at Gatwick, consistent with Heathrow.
• The additional main crew member position will be removed from Heathrow long range routes and other additional crew member routes (currently 12 destinations).
• A single supervisor will be used on all Eurofleet flights, and will either be a CSD or a purser. The work will be balanced between these grades.
• The crew complements on Eurofleet flights will be varied to make them consistent with those currently operated at Gatwick
Annex 2
Proposed approach to target headcount reductions
BA hopes to achieve the target headcount reductions through crew taking up offers of part-time contracts and voluntary redundancy.
The proposed process is as follows:
• Permanent part-time contracts, subject to operational limits
- Completion of existing part-time lists (All bases) (4678 Crew), subject to operational limits
- Register for new part-time list (All bases) 50% & 75% contracts – closed 21st June 09 (707 Crew), subject to operational limits
- Register for new part-time list (Heathrow only) 33% contracts – opens 1st July 09 (To a max of 150 Crew operating on this contract in total at any given time)
• Voluntary redundancy for all UK permanent crew effective 30th Sept 09, subject to operational limits and selection criteria
- Best offer opportunity
- Maximum of 52 weeks
- Registration of interest closed 21st June (3722 Crew)
• Transfer into Heathrow Eurofleet & Worldwide for existing Heathrow crew only
- Subject to take up of voluntary redundancy & part-time offers and operational review
- Existing transfer list only
- No further permanent recruitment or permanent transfers into LHR on the existing Heathrow crew contract, following closure of the list after the review.
In addition to offers of part-time contracts and voluntary redundancy, once BA has understood the level of interest in these opportunities, BA will review transfers between Eurofleet and Worldwide for crew at Heathrow who are already on the existing transfer list. There will be no further recruitment or permanent transfers into Heathrow on the existing crew contracts, following this review and the consequent closure of the existing transfer list.
Annex 3
Integrated Approach for crew joining the Air Cabin Crew NSP on or after x date and those moving within the NSP following the review of the existing opportunities and choice transfer list, which closed on x date
The following are the key terms which BA is currently considering in respect of new recruits and promotions to senior positions. Full terms and conditions are yet to be finalised by BA.
• New rates of pay and terms and conditions
• There are further changes to the current operating agreements
• Single on-board management grade
• No seniority
• Promotion on merit
• Elapsed hourly rate
• Market rate + 10%
• Performance related pay & bonus
October 6, 2009
Dear Colleague
As you know we have been in discussions with Unite on how we will deliver IFCE’s £140m contribution to the savings our company needs to make.
Throughout all of our consultations and negotiations, many of you have told me you understand the need to remove cost and, like me, you want this to be achieved through voluntary means wherever possible. I want to minimise the impact on you, our current crew. And we all share a passion for continuing to provide excellent service to our customers.
Unfortunately, we have not yet been able to reach an agreement with Unite on how we do this and after nine months of talks, the time has come for us to move forward.
While we have consulted with the union at length on this and I had hoped they would support us, the changes we are now introducing will not alter contractual terms and conditions for individual cabin crew.
Achieving savings voluntarily
Everyone who has applied for voluntary redundancy will be able to leave between th30 November and 15 December 2009.
In addition many of you have requested permanent part time contracts and I am pleased to let you know that we will now be able to accept more of these requests. We will begin contacting people registered on the part time lists shortly.
We will also begin actioning transfer requests for Heathrow based crew only, beginning with Eurofleet CSDs who want to move to Worldwide and Worldwide Pursers who wish to move to Eurofleet.
How we will make our savings, while minimising the impact on you, our current crew
We can make these savings and minimise the impact on you, by changing our crew complements. From 16 November 2009 we will make the following changes while still ensuring that our crewing levels can deliver our premium customer service.
Worldwide – effective from 16 November
* One purser position will be removed from all Heathrow Worldwide flights (747,777,767). At the same time, all Worldwide CSDs will join the customer service routines allowing us to keep the same number of crew who are directly serving our customers onboard
* Removal of the additional main crew member on Heathrow long range routes and additional crew member routes Eurofleet - effective from 1 December:
* The crew complements on Eurofleet flights will be varied to make them consistent with those currently operated at Gatwick
* The use of a single supervisor on all Eurofleet flights, either a CSD or a purser, balancing the work between these grades Gatwick – effective from 1 December:
* One purser position will be replaced with a main crew member on 777 3-class aircraft at Gatwick, consistent with Heathrow.
Pay
Pay talks have not yet concluded, but as I’ve said before, we are planning a two-year freeze on base pay for all crew, until March 2011, in line with other areas of the business. We are no longer planning on freezing increments and, most importantly, as promised there are no plans for a pay cut.
Savings from future crew
The proposal to mix future crew with current crew would have required significant changes for you.
I’ve listened to your feedback and I will now look to make savings from future crew at Heathrow, who will join a separate new fleet. These crew will be rostered and will fly separately from you on new terms and conditions. We do not envisage any new crew joining BA until the business begins to grow again.
What are we not doing, after listening to your feedback
This simplified approach, including a separate new fleet, means I will not be introducing any of the following changes previously proposed for current crew. There will be:
* no reduced nights downroute at worldwide destinations
* no change to days off at base for Eurofleet
* no transferral of the B767 fleet to Eurofleet
* no change to early day report for worldwide
* no change to the finishing times for Eurofleet
* no company changes to your variable pay and allowances
* no pay cut
* no increment freeze
New opportunities for you
Taking this voluntary approach to people reductions will create the following new opportunities for personal development and work life balance:
* Worldwide Purser promotion to CSD on current terms and conditions
* Opening up a new list for 33% permanent part time contracts – available to all grades of Heathrow crew
Next steps
I hope that as you read through this letter you will see that these necessary changes hold firm to my principle of minimising the impacts on you as current crew. I hope you will also see that while we have not been able to reach a final agreement with your trade union, we have listened to the points they made during our consultation meetings. Having listened to them, and to your replies to our crew questionnaire, we have moved away from our original proposals to a plan that meets many of the points made in the consultation.
Over the next few days I will write to you individually with more information. My management team and I will continue to be available to listen to your feedback and answer any questions.
There is one item that requires further discussion with the union, namely a revised arrangement for disruption, which puts our customers first. Given the urgency of the business situation we will continue to be available at any time and on any day in order to continue our discussions. The next planned meeting is on 14 October.
I look forward to us being able to move forward with this new, simplified and voluntary approach to savings that also allow many of you to take voluntary redundancy or part time contracts. Thank you for your continued professionalism and service to our customers.
Regards
Bill Francis
Head of IFCE