BA reaches pension deal; Unite urges further talks

British Airways found some common ground with its unions, announcing an agreement on a reduction of its £3.7 billion ($5.58 billion) pension funding deficit that was a roadblock in its merger with Iberia. BA yesterday said it "has concluded consultations with its joint trade unions on the future benefits of its defined benefit pension schemes" and that the "proposals are intended to avoid the closure of the pension schemes and maintain British Airways' contributions at the current level of £330 million per annum." Unite, GMB and the British Air Line Pilots Assn. will recommend the proposal to their members. The new benefit structure, which calls for reduced benefits at current employee contributions or the same benefits with a 4.5% increase in employee contributions, also requires approval from BA's pension trustees.

Meanwhile, the Unite union yesterday urged BA to return to the negotiating table ahead of the scheduled Saturday flight attendants strike (ATWOnline, March 16). "Unite is ready to meet BA. But the company needs to put its offer of last week back on the table. If BA thinks that strikes are going to be avoided with a worse offer, the company is conning the travelling public," the union said. It added that the first of two strikes, scheduled for March 20-22, "will have overwhelming support among cabin crew despite the company's bullying and harassment."