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IAG: BA restructuring may cost 12,000 jobs

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IAG: BA restructuring may cost 12,000 jobs

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Old 18th Jun 2020, 21:13
  #1021 (permalink)  
 
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Originally Posted by Andy D
Yup, Pay in Lieu of Notice (PILON) is taxable in the UK
I wouldn't have too much issue with the tax on PILON, it is Pay of a sort after all, what gutted me last year was the £525/week cap applied. So you get less than half your pay rate and it's taxable and they take off any Job Seekers allowance you might be getting at the time too. This is repayable, and the tax on PILON will probably be recoverable from HMRC if still unemployed next year, but the system is well and truly rigged against the better paid. T'aint that way in Germany. Much better treatment.
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Old 18th Jun 2020, 21:44
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When I took redundancy from BT in 1992 the tax free element allowed then was £30,000. Today after taking into account inflation that figure should be nearer £52,000. Fiscal drag I think they call it.

For those suitable motivated must be worth a question to their local tax office and or MP.

Also understand that during the bmibaby and Monarch redundancy processes , pay in lieu of notice, PILON, was paid tax free.
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Old 19th Jun 2020, 05:36
  #1023 (permalink)  
 
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Qantas pilots are in a similar position with the borders now expected to stay closed until next year. B744 being retired early and A380s going into long term storage. The only flying for the next few months will be domestic and New Zealand so mostly narrowbody.

Pilots worldwide who are on what were previously the senior long haul fleets seem to be bearing the brunt of the current situation. A senior Captain on a high paypoint with limited years ahead before retirement , who's on a type which is likely to remain grounded for the foreseeable future may need to consider his options carefully if an attractive redundancy offer was made.

More junior pilots on narrow bodies are likely to be back in the air first, and with 20+ years ahead of them would be better off staying with the company and riding it out.
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Old 19th Jun 2020, 06:45
  #1024 (permalink)  
 
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Originally Posted by krismiler
Qantas pilots are in a similar position with the borders now expected to stay closed until next year.
Compare and contrast to Europe. Are the Aussies, with just 100 deaths really going to keep the door shut for at least another 6 months? With a vaccine not guaranteed to be found?
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Old 19th Jun 2020, 07:05
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Originally Posted by CaptainSensible
When I took redundancy from BT in 1992 the tax free element allowed then was £30,000. Today after taking into account inflation that figure should be nearer £52,000. Fiscal drag I think they call it.

For those suitable motivated must be worth a question to their local tax office and or MP.

Also understand that during the bmibaby and Monarch redundancy processes , pay in lieu of notice, PILON, was paid tax free.
The only element of a redundancy package that is tax free is the 1st. 30k.of Redundancy Payment. PILON, backpay, holiday pay are taxed, but can be reclaimed if not employed via your tax return. Just been through it with Cooks.
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Old 19th Jun 2020, 08:15
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Originally Posted by CaptainSensible

Also understand that during the bmibaby and Monarch redundancy processes , pay in lieu of notice, PILON, was paid tax free.

Not true - PILON subject to tax, as usual.

Pay a professional to help you with your next tax return and keep any outstanding taxes to a minimum.
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Old 19th Jun 2020, 09:31
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’Last week with the assistance of BALPA, an agreement was obtained with HMRC to allow the payment of PILON free of taxation. The fact of this agreement, will we understand allow substantial savings for the Company through the reduction of National Insurance Costs on the monies due. Therefore to include sector pay on PILON will in fact not cost the company anything.’


From an agreement made in 2012. So there is potentially a precedent for ongoing negotiations.
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Old 19th Jun 2020, 12:45
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But HMRC changed the Law on PILON in 2018 so unless HMRC are involved in the BA/BALPA negotiations I cant see any imminent changes in the law coming.

New rules for taxation of termination payments
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Old 19th Jun 2020, 14:13
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Compare and contrast to Europe. Are the Aussies, with just 100 deaths really going to keep the door shut for at least another 6 months? With a vaccine not guaranteed to be found?
Qantas have cancelled international until late October, however they have a decent sized domestic market to be getting on with, assuming all the different states can agree on the internal border restrictions.

https://edition.cnn.com/2020/06/18/b...hnk/index.html

There are daily flights with Singapore Airlines which are mainly for mail and cargo. Australian citizens may return from overseas but are subject to quarantine on arrival.
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Old 19th Jun 2020, 16:08
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Originally Posted by TURIN
There is a rumour going around that BA Pilots have been offered an enhanced VR package. It is also rumoured that all staff are to be offered a similarly enhanced VR deal in an email.

Can anyone here confirm this?

Enhanced by a sprinkling of glitter, apparently.

The paltry offering demonstrates the value placed on long-serving staff.

Totally underwhelming.
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Old 19th Jun 2020, 16:47
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Wasn’t aware of that, thank you. Now just need HMRC to adjust the amount of redundancy allowable to be tax free in line with RPI. Not holding my breath though!!
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Old 20th Jun 2020, 04:51
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It depends how political the issue gets, when Ansett went broke back in 2001, the Australian government put a tax on air tickets to fund the shortfall in what was due to the employees. This was not unpopular as there was a lot of sympathy for the plight of those who lost their jobs. Perhaps we should have a "Pilot's Lives Matter" campaign.



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Old 20th Jun 2020, 07:10
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Originally Posted by krismiler
It depends how political the issue gets, when Ansett went broke back in 2001, the Australian government put a tax on air tickets to fund the shortfall in what was due to the employees. This was not unpopular as there was a lot of sympathy for the plight of those who lost their jobs. Perhaps we should have a "Pilot's Lives Matter" campaign.



https://youtu.be/zwi56hM3sLs
The fact if the matter is that this isn’t just a BA issue. All over the UK millions of people are losing or are about to lose their jobs and life is about to become very difficult. Add to that the huge numbers of families who now have to adjust to a reduced income from temporary and permanent pay cuts in all forms of industry. People have their own issues to deal with, so I expect any public concern for BA employees plight will be limited at best.
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Old 20th Jun 2020, 07:12
  #1034 (permalink)  
 
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Originally Posted by CaptainSensible
Wasn’t aware of that, thank you. Now just need HMRC to adjust the amount of redundancy allowable to be tax free in line with RPI. Not holding my breath though!!
Only one problem - the RPI is well less than one per cent.
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Old 20th Jun 2020, 07:13
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And what game are they playing here?

Divide and conquer, again?
Are they scared of Unite calling a strike just when BA needs to start a meaningful schedule?

Didn’t WW tell the TSC that BA is ‘fighting for survival’?
Yet here is a pay-rise.
While also buying another airline for €1bn.

https://www.thesun.co.uk/news/119092...eals/#comments
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Old 20th Jun 2020, 08:39
  #1036 (permalink)  
 
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Yes they are. Also this is public relations to sway the opinion of the public, press and parliament. The original comms from BA were very certain that time was short, June 15th would be the appointed day, and money was short. The offer was compulsory redundancies at the bare minimum legal amount and the horrendous new proposed contracts.

The leverage campaign has had effect. June 15th passed without incident, (though it is rumored that the section 188 wasn’t legally correct and the process has restarted), voluntary redundancy has been offered and the proposed contract for cabin crew , at least, has been improved.

The danger with this new cabin crew offer is that it causes a split in Unite who represent both MFU the MF union and BASSA the legacy union. On the face of it, to a mildly interested press, public and parliament the offer seems reasonable under the circumstances.

It isn’t. This fight is far from over, unites campaign needs to alter in response.
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Old 20th Jun 2020, 09:13
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Forced redundancy offer just above statutory in the offers that I know of.

All training suspended on the 747 as of yesterday.


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Old 20th Jun 2020, 13:34
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Looks like the end of the road for the 747.
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Old 20th Jun 2020, 14:09
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Originally Posted by kcockayne
Only one problem - the RPI is well less than one per cent.
I meant since it’s been frozen. 1992 £30K should be nearer £52K today.
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Old 20th Jun 2020, 14:59
  #1040 (permalink)  
 
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Originally Posted by stormin norman
Looks like the end of the road for the 747.
Not according to the optimists on the Fleet, but it certainly looks like a major reduction in hull numbers (no surprises there then)
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