18-Aug-2010 9:00 AM

Unite calls off strike action at BAA's six airports, recommends 2% pay increase offer

UK's BAA staff union, Unite, confirmed (16-Aug-2010) it has called off strike action at BAA's six airports, following construction negotiations with the airports owner. The union announced (17-Aug-2010) BAA made the following offer, which the union is recommending to its engineering, firefighting and security staff: 

  • A 2% increase on basic pay and allowances effective 01-Jan-2010;
  • Arrangements for payment of shift pay during periods of sickness to remain unchanged;
  • For 2010 only, BAA guarantees payment of at least GBP500 equal to 90% of BAA's EBITDA target. It means employees will receive a payment of at least GBP500 and up to GBP900 for reaching 110% of EBITDA target. The EBITDA target is based on the performance of each individual airport;
  • GBP200 of the guaranteed GBP500 will be paid in Sep-2010. The remaining GBP300 to be paid in Mar-2011. [more - calls off strike action] [more - details of offer]

The union will now ballot its members, which is expected to take approximately three weeks (The Guardian, 17-Aug-2010).

  • BAA announced (17-Aug-2010) it believes this is a far offer in what remains a difficult economic environment for the aviation industry. It added it is "very, very confident" the potential strike action has now been avoided (telegraph.co.uk, 17-Aug-2010). The pay rise is double its previous offer for a 1% pay increase, with an additional 0.5% conditional on alterations to sickness agreements (Dow Jones, 17-Aug-2010). [more]
  • Airline responses: flybe welcomed (17-Aug-2010) the agreement. The carrier operates to Southampton, Edinburgh, Glasgow and Aberdeen airports. [more]
  • Government response: Transport Secretary, Phillip Hammond, stated he is "extremely pleased" an agreement was reached, as the strike action would have been "hugely damaging to the country".

Unite: "This offer is double what BAA had originally offered with no strings attached. Plus it comes with a guaranteed lump sum of £500. The negotiations where tough but Unite has delivered a fair offer for BAA staff. The game is up for employers in the aviation industry. With the recession receding in the industry, Unite now expects BAA's pay offer to set the standard," Brian Boyd and Brendan Gold, National Officers. Source: Unite, 17-Aug-2010.

flybe: “Industrial action at any time is damaging to the travel plans of business and leisure passengers alike but during August, it would have hit particularly hard. Flybe is very pleased therefore that strikes are now off the agenda and is encouraged that Unite and BAA have agreed a deal that will now be put to Unite’s membership,” Niall Duffy, Head of PR and Public Affairs. Source: Flybe, 17-Aug-2010.

Want More News Like This?

CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More