HONG KONG (AFX) - British Airways pilots are set to launch the first challenge by any part of the workforce to the airline's radical plans to reform its pension scheme aimed at lowering its 1.4 bln stg deficit, the Financial Times reported.
In its online edition, the newspaper cited The British Airline Pilots Association (Balpa), which represents 2,800 of BA's 3,000 pilots, as warning that pilots were prepared to take industrial action to safeguard pensions.
The report said this would be the first strike by BA pilots and would paralyse the airline's operations.
The newspaper cited Balpa general secretary Jim McAuslan as saying: "BA pilots are standing absolutely firm on this issue. They are incensed. From what the company says they could lose up to 36 pct of their pension entitlement."
The airline is in the middle of a consultation exercise with its 46,000 employees to prepare the ground for sweeping changes in pension entitlements.
The report cited chief executive Willie Walsh as saying BA was contributing five times more than its employees to the pension funds on average compared with a trade union recommended ratio of two-to-one.
The airline has one of the biggest pension deficits compared with its stock market value of any of the companies in the FTSE-100 index.
dg/dk
For more information and to contact AFX: www.afxnews.com and www.afxpress.com
In its online edition, the newspaper cited The British Airline Pilots Association (Balpa), which represents 2,800 of BA's 3,000 pilots, as warning that pilots were prepared to take industrial action to safeguard pensions.
The report said this would be the first strike by BA pilots and would paralyse the airline's operations.
The newspaper cited Balpa general secretary Jim McAuslan as saying: "BA pilots are standing absolutely firm on this issue. They are incensed. From what the company says they could lose up to 36 pct of their pension entitlement."
The airline is in the middle of a consultation exercise with its 46,000 employees to prepare the ground for sweeping changes in pension entitlements.
The report cited chief executive Willie Walsh as saying BA was contributing five times more than its employees to the pension funds on average compared with a trade union recommended ratio of two-to-one.
The airline has one of the biggest pension deficits compared with its stock market value of any of the companies in the FTSE-100 index.
dg/dk
For more information and to contact AFX: www.afxnews.com and www.afxpress.com
© 2006 AFX News
