The GMB trade union warned yesterday of a ‘high noon’ over British Airways (BA) pensions crisis and the big cuts it wants to make.
Ed Blissett, National Officer for GMB members working for BA, said on leaving talks yesterday: ‘Unfortunately we have made no progress with these vital talks on the future of the BA pension scheme.
‘BA failed to provide the details of the savings that GMB’s proposals for the scheme would reap. We estimate the saving to be in the millions.
‘The talks continue next Wednesday (11th October) at Heathrow at high noon appropriately enough as they will be the last as far as we are concerned.’
In a statement, the Transport and General Workers Union (TGWU), the largest trade union at the airline, with over 20,000 members, said: ‘Talks over BA’s plans to fund its pension deficit by cutting pension benefits are in danger of stalling.’
Brendan Gold, TGWU national secretary for civil aviation, said: ‘We have made it clear to BA in a series of meetings that the package of cuts is unacceptable.
‘We will meet again next Wednesday but BA managers need to demonstrate that they have listened and are prepared to move.
‘The way things are looking at the moment it could be that we will fail to agree with all the uncertainty that a talks breakdown means.’
Jim McAuslan, General Secretary of BA pilots’ union Balpa, said: ‘We welcome the Company’s recognition of the need for choice, but for choices to be affordable the Company needs to pay more and talks are entering a critical phase.’
On Friday, 29 September BA announced its pensions deficit was set to double to £2.1 billion.
BA chief executive Willie Walsh said: ‘The deficit is massive and we must deal with it.
‘It’s one of the biggest challenges we face and I’m determined that we will resolve it.’
BA’s proposals include raising the retirement age to 65, capping pay rises to the official rate of inflation and reducing the pension paid.
The airline plans to ‘modify’ the final salary pension scheme, and is offering a £500 million one-off payment to cut the deficit if unions agree to the proposed cuts and the extension of the retirement age by between five and ten years.
