BA pilots agree pay cut to keep airline flying

British Airways pilots have voted overwhelmingly to accept a 2.6 per cent pay cut to save the struggling airline £26 million a year.

The result of the ballot was announced today by the commercial airline pilots' union Balpa before what is expected to be a stormy shareholders' meeting tomorrow.

In a high turnout, 3,000 pilots voted 94 per cent in favour of the unprecedented pay deal, which also includes cutbacks in some allowances. After the initial cut, there will be a freeze on pay for a further two years.

In return, the pilots will be given £13 million of BA shares — about £4,300 worth each — in three years' time.

Agreement on the deal will come as a huge relief to BA's embattled chief executive Willie Walsh, who has told staff the carrier faces a fight for survival in the recession.

Balpa's general secretary Jim McAuslan said: "This is an unaccustomed position for a union to be in but we have pressure-tested the company's trading position and cost base and are satisfied that this step is necessary to help BA recover its position as one of the world's most successful airlines.

"Our members have backed that judgment and are leading the way in contributing to the turn-round plan. The package of measures will be implemented as soon as BA demonstrates delivery of the cost saving targets across the whole company."

Tomorrow other workers with British Airways are due to use live lemmings to protest at the firm's cost-cutting plans.

Union activists will parade the animals in cages, with the slogan that the company and its staff deserve better than the way BA is being led.

As well as the lemmings protest, union members will hand out letters to shareholders as they arrive for the AGM in London, seeking their support for an agreement.

A deadline for agreeing around 3,700 job cuts and a two-year pay freeze as well as changes to conditions passed without a deal on 30 June and talks are continuing to try to break the deadlock.