British Airways (BA), a subsidiary of the FTSE 100's International Airlines Group (LON:ICAG), has reached a tentative labor agreement with its pilots, effectively removing potential walkout threats until 2027. This development comes as the airline strives to recover from the Covid-19 travel slowdown. The British Airline Pilots' Association (BALPA) is set to vote to ratify this agreement, which builds on pay and working-condition changes implemented last year following a pandemic-induced pay cut.
The tentative accord, known as the "pilot pay award 2023-27", follows months of negotiation between BA and BALPA. The deal promises BA pilots a 4% pay rise backdated to June, future raises, and a £1,000 one-off payment in November. It also includes participation in a profit-based reward scheme. This agreement is part of a broader effort by BA to alleviate cost of living pressures for its staff, following a recent 13% rise for 24,000 other BA employees.
While BA has announced an agreement in principle, BALPA will ballot its members before signing off on the deal. The next review of the agreement is scheduled for January 2027.
The parent company of British Airways, IAG SA, recently reported better-than-expected second-quarter earnings. This positive financial performance underscores the effectiveness of measures like the proposed pay and working condition changes in stabilizing operations amidst the recovery from the Covid-19 pandemic.
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