BA backs down in a bid to settle pensions wrangle

BA backs down in a bid to settle pensions wrangle

Blue chip carrier compromises with unions in an effort to hammer out a resolution to its £2.1bn deficit wrangle

BA
has caved in to the will of powerful unions and made another key concession in
talks regarding its £2.1bn pension deficit.

The UK’s largest international scheduled carrier will now lower the proposed
normal retirement age for all staff, including pilots and cabin crew from 65 to
60, after agreeing to increase its annual contributions from £250m to £272m.

Despite winning these key points, workers will now have to increase their
pensions contributions in return. For the first five years, workers intending
to retire at 60 will have to raise their contributions to 10% of their
pensionable pay instead of 5.25%, while air crew will have to put in 11.25% up
from 6.25%. After this initial period the rate will be stabilised at 10% for all
staff.

Brendan Gold, T&
G’s
 national secretary for civil aviation conceded that BA had made a
signifiacnt compromise, but warned that clear differences still existed, in
particular for cabin crew,’
The Telegraph reported.
The union was pushing for a retirement age of 55 for its members.

Related links:

Employee benefits: pensions 

FDs fret over the looming pensions crisis

KPMG survey offers hope for pension
deficits

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