In A Scale, Engineering, Pay by GMB Gatwick Communications

Dear Colleagues,

The company have now made their final pay offer for 2014. There have been lengthy discussions with senior executives of the company. This follows years of below inflation pay awards, linked to erosion of conditions, or pay freezes when the company went through it’s ‘fight for survival’ plan.

In the last financial year, British Airways has made huge profits, and is on target to make £1bn profit for the current financial year. The financial target for the year 2015 is £1.3bn. Colleagues might think that the increasing strength of the company’s financial position would be good news, especially as you have helped the company out of the financial doldrums and the bad years of the economic downturn. In the final pay offer, BA made it clear that there will never be an above RPI pay offer again. In effect members can expect their standard of living to remain the same in years when the company does well and get worse in the bad years.

The company’s final pay offer is as follows:

(i)                Consolidated Pay

The company offer of consolidated pay is 2.7% for 2014 (RPI at December 2013) and RPI (as at December 2014) for 2015.  The 2014 pay uplift would be backdated to January 2014.

(ii)                 Unconditional Payment

Subject to a ‘recommendation to accept’ from each union, and acceptance of the pay offer in full, the company will make a non-consolidated and non pensionable payment of 0.5% of base salary as at 31st August 2014. There would be a minimum payment of £300 which would be pro rated for part time colleagues.

(iii)          2015 Share in Success

The Company will make a one off, non-consolidated, non-pensionable ‘Share in Success’ payment, payable if the company achieves it’s operating target of £1.3bn in 2015. The payment will equate to 1% of base salary at 31st December 2015 with an underpin of £600 (pro rated for part time colleagues), payable in March 2016. This payment is separate from and in addition to, any corporate bonus scheme that may operate in 2015.

Your GMB stewards met on the 16th June to consider the offer. Many were very angry that the company would not concede the point, that now the company is doing well financially that an above RPI pay offer was a worthy reward for colleagues, and felt that the company should not be devaluing colleagues’ basic rates of pay. Performance bonuses have proved very worthwhile to senior managers with the average Band 2 Manager bonus being 21%! Performance bonuses to lower paid members are not so rewarding!

After lengthy discussion all GMB stewards from Gatwick, LHR Terminals, Head Office and Engineering agreed to unanimously recommend rejection of the pay offer to all GMB members.