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Around 24,000 British Airways employees will get a pay rise of 13.1% over an 18-month period as demand for air travel soars, easing the threat of further disruptions as workers push for higher wages across the industry.
Along with the salary increase, BA’s workers will also receive a one-time payment of £1,000 ($1,270), the Unite union said in a statement. Pilots and management are excluded from the deal, it said.
The union agreement ends sporadic wage disputes by various groups of BA workers as the UK grapples with soaring inflation and a cost of living crisis. Unite said the pay deal could increase further during the 18 months if inflation remains high. The union said it has reversed BA’s decision at the start of the pandemic to “fire and rehire” employees, while securing additional pay rises for other groups of staff at the airline.
Owned by IAG SA, BA dismissed as many as 10,000 workers and cut wages for others at the peak of the Covid pandemic. As a result, it was hard hit by a staffing shortfall last summer when travel came roaring back as restrictions ended.
IAG shares were 1.4% higher in London. The stock has gained 35% this year.
Unite general secretary Sharon Graham said the pay rise was “sizeable”. BA didn’t respond to a request for comment.
Demand this summer has skyrocketed as passengers look to jet abroad for vacations after a pandemic travel lull. This bounce-back was evident in earnings this quarter when many airlines beat estimates and presented healthier balance sheets. IAG reported better than expected profit in the second quarter, with leisure travelers driving strong demand.