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British Airways pilots vote to accept package

British Airways

According to the British Airline Pilots Association (BALPA), its members voted by 85% in favour of the deal which will include around 270 job cuts and temporary pay cuts starting at 20%

British Airways pilots have voted to accept a package that will temporarily cut jobs and pay to avoid a larger number of redundancies, their union announced.

The British Airline Pilots Association (BALPA) said its members voted by 85% in favour of the deal.

There will be around 270 jobs axed and temporary pay cuts starting at 20% – reducing to 8% over two years – before falling to zero in the longer term, BALPA announced.

Brian Strutton, general secretary at BALPA said: Our members have made a pragmatic decision in the circumstances, but the fact that we were unable to persuade BA to avoid all compulsory redundancies is bitterly disappointing.

The package, negotiated by BALPA was in response to BA’s formal notification of 1,255 pilot job losses and the threat to fire and rehire the remaining pilots on worse conditions, the union said.

Previously BA owner, International Consolidated Airlines Group was criticised by unions and MP’s after it announced its plans to axe 1,255 jobs and 12,000 jobs in total, after citing low cash flow and the coronavirus pandemic as a reason.

This week IAG announced plans for a rights issue of up to £2.5bn, as it warned the airline industry will take years to recover from the coronavirus crisis.

A BA spokesman said: This is an incredibly difficult time for everyone at British Airways and we are grateful to BALPA and our flight operations team for the work they have done to reach this agreement and save hundreds of jobs.

Today’s financial results show the enormous challenge British Airways faces as it contends with the impact of the global pandemic and government travel bans, reducing demand for travel very significantly, the spokesman said. We do not expect our company to return to 2019 levels of business until at least 2023 and therefore we need to act now to reshape our company for a very different future.

Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.