British Airways and the unions agree

BRITISH AIRWAYS and its unions have agreed to the airline’s proposals to help cut the airline’s £3.7bn pension deficit.  These discussions are separate from the ongoing dispute over working practices between BA and Unite regarding cabin crew.  The plans call for future entitlements in the New Airways Pension Scheme (NAPS) to be built up at a reduced rate, or for staff to pay in an extra 4.5% of their salary to maintain their current benefits.  BALPA, GMB and Unite have agreed to recommend the proposals to their members.  BA operates two final-salary pension schemes, the Airways Pension Scheme (APS), which closed in 1984 and is mainly made up of pensioners, and NAPS, which closed to new joiners in 2003 and has 30,000 members.  In a statement BA said the proposed changes were intended to avoid the closure of its pension schemes and maintain the airline’s contributions at their current level of £330m per annum.  The new benefit structure will be put forward to BA’s pension fund trustees and then be presented to the Pensions Regulator by 30 June.  The timetable fits in with Willie Walsh’s statements regarding the Iberia merger. www.ba.com

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