BA, union resolve labour dispute

Reuters/London

A British Airways crew member leaves following union meetings near Heathrow Airport, in west London, yesterday

The Unite union and British Airways said they had struck a peace deal which should bring to an end an 18-month pay dispute that had cost the airline more than £150mn.The union is recommending its members accept proposals for a two-year deal which would see cabin crew rewarded with a 4% pay rise this year and a 3.5% increase in 2012.BA had initially put a two-year freeze on cabin crew pay in place from 2010. The proposals were met with near unanimous approval through a show of hands at a union meeting yesterday.The deal will now need to be rubber-stamped via a formal ballot over the next month. “You demonstrated the type of solidarity which is astounding and should be proud of yourselves,” Unite general secretary Len McCluskey told around 2,000 union members gathered at the meeting near Heathrow airport.McCluskey said BA had also given way on issues relating to perks for cabin crew who can fly anywhere in the world for 10% of the normal ticket price.BA’s former chief executive Willie Walsh, who moved on to head the airline’s merger with Spanish carrier Iberia, had stripped the travel perks from staff who had gone on strike and vowed never to reinstate them.The issue had become a sticking point in negotiations but the appointment of Keith Williams as Walsh’s successor effectively marked a turning point in the talks.