For some reason, people are debating debating an offer they have not read. So, here it is.
The Way Forward – British Airways formal offer to Unite
This formal offer is made by British Airways in a genuine attempt to resolve
the dispute in the best interests of our customers and our cabin crew.
We all agree that the airline needs to make permanent structural change to its
cost base to ensure its long-term survival. Both parties acknowledge that the
company will only be able to afford this agreement if there is a stable industrial
environment, without any further revenue loss or reputational damage as a
result of industrial unrest.
In doing so, the airline continues to recognise the professionalism and skill of
its cabin crew.
Pay
Increments
Incremental pay rises will continue to be applied.
Fixed Monthly Travel Payment
A new fixed monthly payment will be introduced which will be increased in line
with future pay awards.
Basic Pay
The company has offered a two year pay deal, effective from 1/2/2011 as
follows:
• Year one 2011/12 the company will increase base pay based on
December 2010 RPI and capped at the average of the independent
forecasts for Q4 2010 published by HM Treasury in April 2010
• Year two 2012/13 the company will increase base pay based on
December 2011 RPI and capped at the average of the independent
forecasts for Q4 2011 published by HM Treasury in April 2010
The next pay review will be effective from February 2013
Complements
The company will re-introduce a level of complement equivalent to a total of
184 full time crew into Eurofleet and Worldwide, the distribution of which will
be determined by the company. Understandably any new recruitment to
facilitate complement changes will be into the new fleet.
The level of flying remaining in Worldwide and Eurofleet will be determined by
the number of flights which can be covered with existing crew and
complement levels.
To enable the re-introduction of complements, further savings have been
jointly identified;
• Removal of early day report rule from Worldwide
• Removal of telephone allowance from Worldwide and Eurofleet
• Removal of language allowance from all fleets
• Non flying variable pay maintained at current levels, reviewed Feb 2011
• Crew meals aligned to world traveller specification
• Overseas meal allowances maintained at current levels, reviewed Feb 2011
Complements remain non-contractual.
New fleet
There will be a separate mixed flying fleet for new crew, with separate terms
and conditions and bargaining rights. There will be a separate negotiating body
for the new fleet, which will not discuss the terms and conditions of current
crew.
Assurances for current crew
Crew on existing fleets will have the following protections;
• Terms and conditions for current crew – A fundamental principle of this
offer is that crew will have a firm commitment from British Airways in
respect to their terms of employment. Current crew are assured that their
existing contractual terms will be maintained for the future, unless
amended through the agreed NSP negotiating procedures.
• Part-time – The company will continue to honour commitments to make
part-time offers to all crew on existing lists by March 2011. The offer will
be on existing fleets, terms and conditions. Future opportunities will
continue to be available.
• Access to route network – It is the company’s intention to ensure a fair and
transparent distribution of routes to all fleets, based on commercial need,
which will be discussed with Unite. The distribution will be reviewed at the
end of each season and will be considered as part of the broader TUC
review process after twelve months. Clarification of route access is
contained in a side letter to Unite.
• Monthly travel payment – To provide increased security of earnings, both
parties have agreed to introduce a monthly travel payment that
consolidates existing variable payments for Heathrow fleets. The payment
will be based on the average of the 2008 schedule (see appendix A). The
company will adjust the monthly travel payment each year, in line with base
pay.
• Allowances to be paid – Meal allowances, daily overseas and a number of
other allowances will continue to be paid see Appendix A.
• Access to aircraft type – It is the company’s intention to deploy new
aircraft based on commercial need across existing and new fleets. New
aircraft will be introduced on a fair and transparent basis across all the
company’s fleets. Existing crew terms, conditions and fleet agreements will
apply when new aircraft are operated on existing fleets. As new aircraft are
introduced across all of the company’s fleets, crew will be trained in order
to receive the necessary licenses as required by regulation.
• Career structure and opportunities for current crew – The career structure
for current crew within current fleets will continue on the basis of existing
practice, unless amended through the agreed NSP negotiating procedures.
The company confirm that where there are opportunities available, existing
crew will be promoted on existing terms and conditions on current fleets.
• Honouring current and future agreements – Both parties acknowledge the
importance of honouring agreements and are committed to working
together to create a climate of effective industrial relations. The best way
of guaranteeing this is through the successful completion of the industrial
relations review, which will include the appropriate application of cabin
crew agreements.
• Ability to transfer fleet/base on current terms and conditions – As with the
current process, there is no guarantee of achieving a transfer. However,
the company has committed to continue with the current practice of
transfers at Heathrow between Eurofleet and Worldwide, and to find a
mechanism to aid limited transfers from Gatwick under current terms and
conditions.
All current crew will have the opportunity to apply for all roles on the new
fleet if they choose. This will provide promotion opportunities for many
current crew. All crew joining the new fleet will have separate terms and
conditions. The company will recognise Unite for the purposes of bargaining
in the new fleet.
Opportunities for Gatwick crew
It is accepted that restrictions within the Gatwick Fleet memorandum of
agreement limit the long haul route network. It is agreed that discussions will
be held with a view to removing these restrictions to provide the best
opportunities for growth in the long haul network at Gatwick, for the benefit of
the business and our people.
Disruption agreement
In order to minimise the impact of disruption to our customers and our crew,
the following points will remain, or be incorporated into the Disruption
Agreement
• The definition of disruption remains unchanged
• The double night will be removed for Worldwide diverted inbound
services to anywhere in the UK and Europe, and a minimum of 15 hours
off-duty will be achieved if the aircraft is unable to continue to its
original destination
• When disruption takes place the IFCE management team will advise
duty representatives and crew colleagues when and how the disruption
agreement has been applied. A review will take place of any disruption
at the next joint meeting
Working together
The parties are committed to beginning the process of restoring and
improving relationships at all levels. With this in mind, it is important that there
is no victimisation arising from the dispute and both parties will work to ensure
that any issues are settled in a mature and professional way. Where there are
disciplinary or grievance cases, the intention is that these will be resolved
quickly. Where behaviour is found to be serious, any resulting action will be
measured and proportionate.
For the benefit of our crew, customers and business and in support of our
objective of making IFCE a great place to work, the company is keen to
develop a positive working relationship with the trade union to enable
effective industrial relations. The delivery of this agreement is dependent on a
radical change to our working relationships. In order to achieve the necessary
change a third party organisation will be engaged to support a fundamental
review of the company and cabin crew trade union relationships.
Future IR framework
It is acknowledged that the existing arrangements for industrial relations for
cabin crew need to be reviewed and made fit for purpose, for both the
company and the union in the 21 st century.
The union will re-engage with the existing facilities agreement. Negotiations
will take place between the company and the union nationally, with a view to
reaching a mutually agreeable framework within 12 weeks of completing this
agreement. The union have noted the company’s intent as outlined in the
covering letter of 6 April 2010 from Willie Walsh.
The company proposes the introduction of a broader business consultative
approach across British Airways, to engage our representatives and our
managers in a wider debate about our business performance and needs of our
customers. An example of items for discussion at the forum is the allocation
of routes. Prior to the start of each season the company will discuss the
allocation of routes with Unite.
Both parties are firmly committed to the effective application of company
procedures, which are currently the subject of negotiations in the Employment
Policy Committee and BA Forum.
Policy
Changes to corporate policies that apply to all colleagues across the company
and covered at the BA Forum and EPC have been subject to discussion. It is
the intention to conclude these discussions within one month of completing
this offer.
Summary
This formal offer maintains the contractual rights of cabin crew at their current
level. The offer does not reduce or extend them from where they are today.
Both parties recognise the assistance the TUC has given in securing this
agreement. The application of this agreement will be reviewed annually with
the TUC, at twelve, twenty-four and thirty-six months from the date the
agreement is signed.
Appendix A
Fixed Monthly Travel Payment
We have provided protection for security of earnings, having agreed a new
monthly travel payment, that consolidates existing variable payments for
Heathrow fleets. The payment will be based on the average of the 2008
schedule. The company will adjust the monthly travel payment each year, in
line with base pay.
How much will the payment be
The amounts have been calculated by fleet and grade and are as follows for a
full-time crew member. These rates are based on the 2008 schedule.
FLEET GRADE ANNUAL EQUIVALENT
Worldwide CSD £9,676
Worldwide Purser £9,258
Worldwide Main crew £8,085
Eurofleet CSD £2,470
Eurofleet Purser £2,470
Eurofleet Main crew £2,266
Part time crew will receive a pro-rata amount of the above monthly sums. If
part time crew are absent, the daily deduction rates will not be pro-rated as
the sum deducted relates to a single working day.
Fixed Monthly Travel Payment
This is a fixed payment to be paid on a monthly basis via 12 equal instalments
and will replace specified variable travel allowances currently earned by crew
(see below for specific details). The objective is to provide greater stability of
earnings for current crew in Heathrow Worldwide and Eurofleet to mitigate the
concerns over pace and mix of work transfer to separate new fleet.
Included within the Fixed Monthly Travel Payment
The Fixed Monthly Travel Payment will replace the variable allowances below,
which will cease to be paid:
Worldwide Eurofleet
Long Range Premiums (LRP)/Box Payment Long Day Payments (LDP)
Back-to-Back Payment (B2B) Excess Time Premium (ETP)
Destination Payment (DES) Base Early Report Payment (BER)
Excess Time Premium (ETP)
The following categories of allowance will continue to be paid in the same way
as they are today and are not included within scope of the Fixed Monthly
Travel payment:
Meal Allowances Daily Overseas Allowance (DOA)
Nightly Incidental Allowance (NIA) Time Away Allowance (TAA)
Line Trainer Payments Willing to work
Rest Day Working
Exceptional Payments from WW Disruption Agreement (One-Down and Zone
Closure)
Deductions
As this is intended to directly replace current variable flying allowances, daily
deductions at the normal rate for your fleet will be made to cover periods of
non-flying duties from the following list:
Sickness Unpaid Leave
Trade Union Activities Grounded Maternity (**)
Line Trainer Duties (*)
(*) Current Line Trainer payments will continue to apply
(**) Current Grounded Maternity Allowance payments will continue to be
made