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BAA offer resolution to pay dispute that is actually worse than BA

BAA has allowed the trade union Unite to offer a deal in order to settle the ongoing dispute over pay however it left many cabin crew staff members disheartened as the money on the table is less than what British Airways is willing to pay. BAA defended its actions due to the fact that they have offered around 8,400 staff in the security, fire fighting and ground handling members a £500 bonus; they have also been promised 2% pay rise for the current year.

The BAA staff included earn on average £27, 300 per annum with the potential to earn approximately £400 extra in bonuses provided the airport makes 110% of the its target earnings. The deal has so far managed to prevent a walkout which at the height of the holiday season could be extremely detrimental to its earnings and also for its many travellers which flood Edinburgh, Heathrow and Stansted on a daily basis.

BA has now offered a pay deal that is closely based on RPI measure of inflation which took placed in December, it will be capped at 2.9% for the year 2011, specifically February and will then rise to around 3% for the following 12 months. The RPI recorded in July was 4.8% based on the figures received on the 17th August 2010.

The walkout from the BA cabin crew staff members is thought to have cost the airline around £150 million are also in receipt of a incremental pay rise which will see them take home anything between 2% and 7%, this will depend on the length of service that they have done in the company.
BAA had previously offered a 1% pay rise which also included a further 0.5% if productivity approved however this has now been dropped.

In the first step of negotiation the company declined to hand over a £450 a head bonus due to the fact that it had missed out on its ebitda target. BAA did however issue an apology for its ‘uncertainty’ and stated that it was a ‘difficult economic environment’.

The new pay deal has been backed by United and the company are now urging its worker in Heathrow, Stansted, Southampton, Glasgow, Edinburgh and Aberdeen airports to agree to the deal. The staff members will now vote on the proposed deal whilst the strike has now been called off.