BRITISH Airways staff can look forward to a bonus worth more than a week’s wages in July following the airline’s excellent results for the year to March.
Chief executive Willie Walsh revealed an annual profit of £620 million last week. A margin of 8.3% on the £8.5 billion turnover triggered the bonus. The bonus scheme comes into effect when the operating margin hits 8%.
Non-management staff will receive 115% of their basic weekly pay, with a minimum of £575 each – totalling £48 million. Walsh said: “We remain committed to hitting a 10% margin by 2008.”
Unions welcomed the payment, but said it did not resolve the underlying issues of pensions and wages.
T&G national secretary for aviation Brendan Gold said: “These profits are the result of a lot of work by our members.”
The £2.1 billion deficit in BA’s pension fund remains a potential battleground, with the airline looking to raise the staff retirement age and cut entitlements.
“BA’s proposals will reduce pension pots by over £13,000 each and we face the challenge of the move to Terminal Five. We’ll study the detail, which will inform talks on pensions as well as the forthcoming pay round,” said Gold.