The Accord between BAA and UNITE laid bare

After a taut weekend, air passengers now have a reason to smile. Yes, the allusion is to the BAA strike issue. Unite has decided to call the strike off. However, before the strike can be totally called off, Unite would need to call a vote amongst its members. The union would be recommending its members to vote against a strike. The reason for this development is the successful conclusion of a 9 hour long dialogue between the BAA and Unite over the issue of pay hike.

Last week, BAA employees had voted in favour of a strike. BAA had rolled out a hike of 1% and a possible additional raise of 0.5%. The additional raise was contingent upon the employees abiding by any changes made to the firm’s sickness compensation policy. Unite rejected these offers as measly, especially in view of the fact that last year employees had accepted a wage freeze as well as changes to their pension plan. However, BAA was not ready to budge, citing the dismal economic scenario and the huge losses incurred earlier in the year.

This stalemate between the BAA and Unite took an ugly turn with the call for strike. However, BAA and Unite decided to hold a meeting and explore the possibility of resolving this issue. During the meeting, the BAA came up with a 2% hike in basic pay backdated from 1st January, 2010, and agreed not to alter the sickness compensation policy. Furthermore, a per head lump sum payment of ₤500 would be given for 2010. This may go up to ₤900, in case the airport where the employee works overshoots its earnings prior to amortization target, depreciation, interest, and tax. Unite has accepted these new offers and has decided not to go forth with the strike.