British Airways pilots are to take a pay cut as a part of a financial savings drive by the airline because it seeks to survive the coronavirus disaster.
In a letter to workers seen by Sky News, the agency stated it has agreed preliminary measures with the pilots’ union BALPA to sort out “the immediate threat to the business in the face of COVID-19 and the unprecedented impact this is having on the airline”.
Under the transfer “to protect the future of the business and jobs”, BA’s 4,500 pilots may have to take two weeks of unpaid depart in each April and May, however with the cut in wage unfold over three months, together with June.
In order to scale back the affect on take residence pay, there would be the choice to droop pensions contributions.
As a part of the deal reached, it’s indicated a session on threatened redundancies can be placed on maintain.
The letter states: “We are committed to finding solutions and will focus any future discussions on exploring and exhausting all voluntary measures.”
It added: “We acknowledge that this situation is hugely challenging for individuals and their families. BA and BALPA are committed to working together to find solutions during this unprecedented period and support the future of our airline.”
The step comes after BA’s chief govt Alex Cruz final week warned that jobs can be misplaced and planes grounded within the face of the business turmoil brought on by the pandemic, which has seen worldwide flight cancellations and plunging demand.
In message to staff, titled “the survival of British Airways”, Mr Cruz stated the present disaster was extra severe for the airline business than 9/11 and the monetary crash.
Willie Walsh, the chief govt of BA-owner IAG, has taken a 20% pay cut for the remainder of his contract till the top of June, in accordance to the Financial Times.
The bosses of IAG’s different airways, which embody Aer Lingus and Iberia, are additionally to take a wage discount.
Other airways have additionally taken measures in a bid to climate the storm.
UK-based EasyJet and BALPA have signed an settlement to minimise the danger of pilot layoffs within the UK over the following 18 months, together with a pay freeze and asking all crew to take unpaid depart for 3 months.
Meanwhile, Qantas Airways has instructed most of its 30,000 workers to take depart and Lufthansa warned the business might not survive and not using a state bailout if the pandemic continues for a very long time.