10 Nov

Pay Ballot November 2016

The union has spent some considerable time negotiating pay in all areas across the airline. The pay offer for LGW cabin crew obviously had to be at least as much as other areas. We are also pleased to confirm that the offer received is not made with any strings attached as it has with some of the other areas.

Worldwide and Eurofleet cabin crew have been offered a 1 year pay deal of 1.6% with productivity savings a prerequisite.

Mixed Fleet have not been included in the corporate pay offer and are likely to be offered a 1 or 2 year deal, at best.

The pay offer for LGW (both pre and post 2010) is a 3 year deal with underpins in the event that RPI is actually more than the percentage offered in year 2 and 3. This has only been achieved for our 2010 colleagues by the solidarity demonstrated in the May 2016 ballot.

The offer is, therefore:

2% for 2016.
2.5% (or RPI – whichever is greater) in 2017)
2.5% (or RPI – whichever is greater) in 2018)

The pay rise in 2016 will be backdated to Jan 1st, and the aim is for this to be paid in December 2016.

In 2017, RPI is predicted to be 2.7%, and in 2018, early predictions are that RPI will be around 3.4%.

We looked at various models of applying this pay rise i.e. front loading a higher percentage for a 1 or 2 year deal. This gave us no guarantees in year 3 and nothing in year 2. In reality, given the predicted RPI rates, it seems rational to conclude that a 3 year deal with underpinned predictions was a better option. For example, if the predications are correct, this pay deal would mean a total of 8.1% over the next 2 years (2016 is almost over), but a minimum of 7% in any event. Coupled with the natural increase in pay for all cabin crew as a result of buy-on-board commissions, this is a more positive outcome for LGW than the previous 18 months.

For those currently receiving pay protection under the 2012 re-deployment arrangements following the single supervisory grade changes, you will recall that financial models/projections were based upon a 2% increase in pay over the 4 year period of pay protection. With this pay deal, the actual pay increase received will be around 0.7% greater in year 2 and around 1.4% greater in year 3 – thereby increasing basic pay sooner than expected.

Of course, all applicable variable allowance will attract the pay increase also, meaning hourly flying pay will increase from:

£2.82 in 2015 to £2.88 in 2016 (back dated), to

£2.96 (at RPI prediction 2.7%, minimum £2.95 at 2.5%) in 2017, and to

£3.05 in 2018 (at RPI prediction 3.4%, minimum £3.02 2.5%).

The pay offer is secured with a clause which protects our position, should any other bargaining group receive more that these sums in their own negotiations. All bar one other group have concluded negotiations and conducted their own consultative ballots.

We shall shortly conducting a consultative ballot of all members in relation to the offer. This ballot will be conducted electronically so will take just a few moments to participate. All members will receive a unique link in order to cast their vote. In view of the timing of this ballot, it will be open for a period of 10 days in order to meet pay deadlines for December pay, should it receive acceptance.

Pay

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