UK airlines threatened with GBP50m hike in wage bill

Posted 17/09/2011

Airlines will see their wage bill rise by up to £50m a year after the European Court of Justice ruled British Airways should base pilots' holiday pay on overall earnings, not just basic pay.

The British Airline Pilots' Association (BALPA) said the decision from the test case would apply to cabin crew as well as pilots.

If the case is approved by the UK Supreme Court, it could mean airlines will have to pay an extra £20m for pilots and £30m for cabin crew.

BALPA general secretary Jim McAuslan said: "This is a major victory for all pilots in the UK, not just the 3,000 British Airways pilots who had their claims heard by the European Court of Justice.

"The calculation of holiday pay was a clear example of pilots being short-changed by their employers. We always believed that under European working time rules introduced in 2004 pilots should be treated like other working people in the UK and should receive their proper pay during holidays. This should not be restricted to basic salary but should include allowances.

"British Airways and other UK airlines opposed us but, after a six-year legal battle, the European Court of Justice finally agreed with us.

"Based on this BA judgment, BALPA will be seeking to agree similar holiday pay arrangements for pilots in other UK airlines."

British Airways said it was waiting for the final decision of the UK courts. A spokesman added: "We are considering the European Court's ruling, and await the decision of the Supreme Court on whether it affects the holiday pay which has been collectively agreed between BA and its trade unions."


By Linsey McNeill
 

Originally published 17 Sep 2011 at: http://rss.feedsportal.com/c/398/f/5923/s/1870b8a2/l/0L0Stravelmole0N0Cstories0C114940A10Bphp0Dmpnlog0F1/story01.htm