GMB calls on BA to cap pensions payouts for directors

The GMB union has called on British Airways to cap pensions payouts for its directors and managers in a bid to fill a £2bn hole in the airline’s pension fund.

BA has warned the shortfall in its pension fund could reach £2.1bn, more than twice the previous estimate of £928m – despite the company doubling its contributions.

The airline proposed putting a one-off sum of £500m into the pension, retain the final salary scheme, but raise the age of retirement from 60 to 65.

However, the GMB said it would not accept the deal, instead proposing a pensions cap of £50,000 per year for all BA employees, including managers and directors.

Ed Blissett, GMB national officer, said: “BA must put a stop to the top people in the company walking away with massive pensions after a short period of service.”

“GMB is also of the view that BA must inject £1bn in cash into the fund,”  he added.

BA’s chief executive Willie Walsh said the company’s proposal was “a fair solution”.

“The deficit is massive and we must deal with it. It’s one of the biggest challenges we face and I’m determined that we will resolve it,” he said.

 

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