BA staff threaten industrial action
British Airways staff are threatening to take industrial action following the airline’s decision to deduct increased National Insurance contributions from their pay.
The GMB union said the airline was planning to pass on its National Insurance liability of 3.1% to employees from April 6.
As a result of Government changes, employees will have to pay an extra 1.4% in National Insurance contributions. Employers also have to make additional contributions, but the GMB said BA had decided to pass on the company NI liability of 3.1% to its staff, meaning employees will pay an extra 4.5%.
It plans to hold a ballot to see if members are prepared to take industrial action over the decision.
The GMB represents thousands of BA staff working in several areas including passenger services, ground handling, security, engineering and cabin crew.
Its members at Heathrow are also planning a rally on Monday over the outsourcing of IT jobs to India.
National officer Mick Rix said: "BA has announced record profits of £1.4 billion. This week they also won the prestige superbrand award.
"BA senior management can bask publicly in its recent achievements, which are due to the efforts of BA staff, however the workers that have created the company success are getting a raw deal.
"The company has decided to reward those hard working BA workers by passing on the company National Insurance tax liability to those who are members of the pension schemes.
"BA are acting disproportionately and are disadvantaging lower paid women colleagues, who in effect will be paying more of the company share of tax as a proportion of earnings, than senior managers earning above £100k per annum."
The rally on Monday is over BA’s proposal to outsource computing jobs to a consultancy based in India.
The GMB claims the consultancy will bring staff from India to work in the UK, replacing former BA staff, which it claims is an abuse of current visa regulations.
A BA spokesman said: "We consulted with our employees in our two defined benefit pension schemes (APS and NAPS) and unions over our proposals relating to the effect of the Government’s changes to state pensions which are being introduced this year.
"Under the Government’s changes, contracting out of the second state pension will no longer be possible, and National Insurance (NI) contributions will increase.
"In order to cover the increased NI costs resulting from the Government changes, the company’s defined benefit scheme members can make a higher monthly pension contribution or opt for a lower pension build up rate.
"IT services are now provided globally by a range of suppliers and this is very common practice across all industries and the UK Government. A contract has been signed with TCS to be the supplier of some IT activities in British Airways, and British Airways has been in consultation with those IT staff affected, about 200."
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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