British Airways today announced it has reached agreement with its 14,000 cabin crew for a two-year pay deal, marking the end of pay negotiations for the vast majority of employees within the airline until the turn of the century.

The cabin crew deal provides a 4.2 per cent increase in basic pay in year one, effective from January 1, 1998 and Retail Price Index (RPI) plus 0.5 per cent in the second year, effective from January 1, 1999. It is the final part of negotiations, the result of which is to increase British Airways’ UK-base wage costs by an average of 3.8 per cent for 1998/99.

Six unions representing over 35,000 airline employees including flight and cabin crew, aircraft engineers, baggage handlers, and office workers have agreed the corporate pay deal which guarantees an above inflation rise for most employees for the next two years.

The pay award for some 5,000 employees has been restricted by local agreements reached as part of the airline’s business efficiency programme.

“It has taken just three months to reach complete agreement across the business. This shows the co-operation which exists between the airline and its union representatives,” said Bob Ayling, British Airways’ Chief Executive.

“I want to thank everyone who took part in these positive and constructive negotiations. As a results of these talks, and the BEP agreements, we are much better placed to compete than we were a year ago. This is due to the extra-ordinary efforts of our people.

“The agreements should provide for a period of stability which will enable us to concentrate on meeting head-on the challenges of tough competitive conditions while providing our customers with the standards of service for which British Airways is renowned across the globe.”

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