British Airways’ staff and pensioners will hold a meeting to protest low payments to retired workers which has caused considerable anger.
According to The Sunday Times, The Association of British Airways Pensioners will invite 25,000 members of the New Airways Pension scheme including 9,000 cabin crew to discuss the recent payment increase.
Pensioners have been unhappy following a decision to increase payments this year by the consumer prices index (CPI) measure of inflation rather than higher retail prices index, which is expected to be around 1% higher for the next five years. The move is thought to have led to the recent resignation of a British Airways pension fund trustee.
CPI payments this year mean that retired BA staff receive a 3.1% increase, rather than the 4.6% they would have expected based on inflation figures for last September.
The BA pension scheme is currently £3.7 billion in the red and the change to CPI is calculated to help cut this by £770 million. APS is the older of the two pension schemes BA operates.