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BMI and BALPA reach draft agreement over pay dispute

16-Feb-2009
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BMI and BALPA reach draft agreement over pay dispute

Tags :UK, bmi British Midland, BALPA, bmi

The British Airline Pilots' Association (BALPA) and the airline bmi have reached a draft agreement over a pay dispute.



General Secretary of BALPA Jim McAuslan said, “We are pleased that after some tough talking we have been able to reach a draft agreement with bmi. This will now go to our members for consultation. We will then have to convert today's draft into a legally binding contract by 28-Feb, failing which BALPA will be taking legal action to enforce our contract.

“I am pleased the company has agreed to pay pilots the equivalent of what would have been their pay rise for January and February this year. This could be up to GBP500 per pilot.

“In return we are agreeing to defer the introduction of the third year of our three year pay deal to a time to be agreed between the company and ourselves, based on economic circumstances.

Talks were held between bmi and BALPA to discuss the "pay freeze", which was announced on 27-Jan-09.

A series of points were made on both sides with BALPA representing that the pay increase was a contractual entitlement and bmi management stating that irrespective of the legal position the company could not afford to pay any increase to any staff in 2009.

In recognition of the difficult and worsening economic situation that the aviation industry is facing, BALPA offered to temporarily suspend the bmi mainline and 01-Apr-09 (bmibaby and bmi regional pilots) pay increases. It was proposed that this 'suspension' would be underpinned with yet to be defined, mutually agreed criteria for reinstatement. The CEO has offered to allow BALPA to validate the company's current financial position.

This was welcomed by BALPA and an independent financial expert will be appointed to review this in the next week. In addition, bmi agreed to provide the BALPA CC with a detailed business brief and to arrange regular update meetings.

 

(c) Centre for Asia Pacific Aviation. Date posted: 16-Feb-09

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