Your Pay Offer – Time To Decide

Your Pay Offer – Time To Decide

News, Monday, July 08th, 2019

Your Pay Offer – It’s Time To Decide 



Pay Offer – It’s Time To Decide 

This pay offer has taken many months of negotiation. It has been far from easy and was not BA’s first offer. In fact, we have already rejected four previous offers since Unite submitted our joint pay claim in November 2018. Solidarity with the GMB and BALPA has taken us from an original starting offer of a one year deal worth just 2.3%, to a three-year deal currently above any predicted RPI inflation. We do not believe that any further progress can be achieved through negotiation. 
Unite is recommending acceptance of this offer. In addition to the overall above inflation improvements this proposal delivers on your pay, your area reps are endorsing Unite’s recommendation to accept.
To be absolutely clear from the start, this is not a perfect deal. In our experience no deal ever is. It is however an industry leading offer with more new money (£200m) negotiated than ever before. Whilst the offer delivers a much needed above inflation pay rise for us, it is true we would have liked to have seen higher underpins on the basic pay element. This we believe has been partly offset with the non-consolidated payment of £750, which cannot not be overlooked when considering the total value of the deal. 
To put this offer in context, historic corporate pay increases have been:

2013 2014 2015 2016 2017 2018
3% 2.7% 1.6% 2% 2.5% 4.1%
For information, RPI inflation was 3.3% for 2018 and is 2.7% for the first quarter of 2019. For April and May 2019 RPI inflation has been 3%. RPI stands for the Retail Price Index, a measure of inflation published monthly by the Office of National Statistics. It measures the change in cost of a representative sample of retail goods and services and is used to track changes in cost of living expenses.
In terms of other companies, “Personnel Today” cites the average private sector pay rise to be 2.5% in 2019, with increasing uncertainty from Brexit leading to short term pay deals. There is no self-funding, or anything required from us to receive it. 
The offer covers the next 2 ½ years, until April 2021. 
Your Basic Pay
Year 1– If accepted your basic pay will increase immediately by 4% or £700* a year, whichever is greater. This is an increase of between 4% and 5.3% in year one, depending on your current pay increment.
Year 2 – From January 2020, six months from now, your basic pay will increase again by 3.5% or £650*, whichever is greater. This is an increase of between 4% and 4.7% in year two, depending on your pay increment.
Year 3 – From April 2021 your basic pay will once again increase by 4% or £700*, whichever is greater. This is an increase of between 4% and 4.8 % in the final year, again depending on your pay increment.
*All underpins are pro-rata for part time colleagues

We believe this will be an industry leading pay increase over the period.

 Your Allowances & Variable Pay

The annual pay increases will also be applied to all ancillary/variable pay. 
Using the above table you can see the effect this pay rise will have on YOUR PAY if it is accepted. 
Backdated Pay

Increases will be backdated to January or February 2019 subject to area, and on acceptance of the pay offer and will appear in your payslip as ‘Back Pay’.
One-Off Non-Consolidated Payment
If the pay deal is accepted a one-off payment of £750 (pro-rata for part time colleagues) will be made to you.  It is anticipated that this payment would be made in the August payroll subject to acceptance of the membership. 
This exceptional cash bonus is in addition to the backpay.
All Colleague Bonus
The current corporate bonus scheme is run at BA’s discretion and retains the £400 underpin. It will run in a similar way to previous years,  but with some changes to pay out percentages and targets meaning that it is easier to achieve more. 
The scheme, if triggered, will pay between 1% and 4% of basic pay in 2019. Then from 2020 and 2021 awards will be increased to between 1% and 5%.
Targets are set by the BA Remuneration Committee in Q1 each year. These targets are consistent across all colleagues including managers and BA senior leaders.

Gain Share
Gain share is a new scheme, TU initiative, whereby colleagues will benefit directly from any cost savings generated by changes within their business area. This does not create any obligation for change, however, establishes a principle that a proportion of any costs that are saved are returned to colleagues within the area as a non-consolidated award, payable when the associated cost savings and benefits have been achieved. Whilst the returned percentage is not specified in this document, any return percentage must be the same for all areas falling under this pay offer.
Additional Items
Colleagues who have achieved or will achieve 30 years’ service in 2019, 2020 or 2021 will receive two vouchers to provide access for the colleague and one guest to visit any UK BA lounge for their applicable class of travel. The vouchers can be combined to permit the colleague and three guests to visit the lounge on one occasion. These vouchers can be used at any time and will not expire.
If any other area through 2019 – 2021 pay negotiations agrees further uplifts to basic pay, ancillary items, non-consolidated payments or additional payments; the additional uplifts shall apply to all groups under this pay claim.
BA reserve the right to make further market rate uplifts or adjustments to Mixed Fleet Cabin Crew and other areas (HCS2012, GCS2014, UK Customer Contact 2014 and LGW2010 Cabin Crew) covered under this deal without this additional uplift being applied to other areas. This means that BA reserve the right to potentially increase new starter pay to attract joiners, without existing groups submitting further pay claims. 
Any further pay offer made to BALPA, even if the offer is structured differently, will be no greater than the overall value of this offer. 
Q & A
I heard that some areas are excluded? 
That’s correct. Some areas have already negotiated and accepted locally a pay offer for 2019. That remains as is, but they will benefit from the 2020 and 2021 offer. Unite do not have bargaining rights over pay for some staff i.e. Management grade employees, who are under individual management contracts with individual bonuses and who have already received their management bonus earlier this year.
However, in one specific area Unite has managed to achieve the potential step of creating an operational Band 3 management NSP (a bargaining group) to assist those colleagues in achieving the aim of getting their pay to be collectively bargained in the future. Until now BA have refused certain groups such as CSMs on Mixed Fleet to have their pay negotiated by Unite. As mentioned above, CSMs and other management grade employees have already received their individual bonus and pay award this year, so cannot be included in this deal. 
What about BALPA and the Joint TU Position?
We reached this successful juncture through the strength of joint TU negotiations; however, every Union is ultimately accountable to their own members. Unite and GMB recommend acceptance of this deal to our members. We have a good relationship with BALPA and will remain in close talks to assist our pilot colleagues who may or may not decide on a different path. They will always put their members first – however, we must also do likewise and this is why we cannot recommend that you take industrial action over what could essentially be just an additional bonus, but with any financial impact severely reduced by the loss of pay and benefits associated with a strike.
This deal gives certainty to earnings, smoothing a path through what could potentially be a turbulent three-year period for all workers, not just for our industry, but the whole of UK with the potential uncertainty of Brexit.

Next Steps
Now that you have all the relevant information to make an informed decision your area will conduct a consultative ballot of the membership to see whether the proposal is accepted or rejected. This ballot will take place over the coming days and you will receive a unique link to the ballot via email, or in some areas by paper ballot. 
Please take time to consider the advice contained in this email carefully, before casting your vote. As always, if you have any questions or concerns please get in touch with your reps.