UK - British Airways pay talks have broken down after unions were warned that pension costs would limit the scope for salary increases.
BA has offered 8000 ground staff and baggage handlers a three-year deal worth 8.5%. There is an alternative offer of a 10.5% rise, provided the increase is not pensionable.
However, the offer was turned down by the Transport & General Workers’ Union, which said it did not recognise the contribution made by workers.
A T&G spokesman said: “The union is now reviewing its options, including going to a third party to broker more discussions. But another possibility is to ballot members for industrial action.”
BA, which aims to lower business costs by £300m over the next two years, is committed to paying £133m a year for the next decade to close the £9.7bn British Airways Pension Scheme’s £1bn deficit. As a result, it said that it could not meet the T&G’s demands.
A BA spokesman said: “We have put a reasonable offer to the trade unions and have offered to continue talks with third-party help. The aviation industry is facing tough times.”
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