British Airways plans to award one-off bonuses to its pilots, cabin crew and ground staff as the airline strives to rebuild morale among its 20,000 employees.
The UK flag carrier will give a 10 per cent bonus as a “gesture of thanks” to its operational employees, which includes flight attendants and ground staff.
Pilots will receive a 5 per cent bonus – the equivalent of £7,500 ($10,168) for those on a salary of £150,000 – in separate negotiations with their union, the British Airline Pilots Association. The lower rate is believed to be reflect their higher pay.
The inflation-beating payments are part of pledge from BA chief executive Sean Doyle, who took on the role in October 2020, to boost staff morale during the crisis and help improve services for passengers.
Inflation rose 5.5 per cent in January, as Britain faces a cost-of-living crisis amid soaring energy bills and rising taxation.
Staff need to be put “back at the heart of the company” Mr Doyle said in an interview last month, although he added that “honest conversations about what it takes to compete” are needed in the aviation sector.
Cabin crew salaries have risen throughout the airline industry in recent months as carriers compete to fill vacancies.
The easing of coronavirus restrictions has encourage more travellers to return to the sector since the hammering it took at the onset of the pandemic.
The industry is now “optimistic” about the outlook for 2022 as Omicron-related restrictions ease.
Annual passenger traffic returned to 42 per cent of 2019 levels last year and cargo volumes rose 7 per cent from 2019, the International Air Transport Association said.
Skilled workers abandoned aviation sector early in the pandemic, many of whom left their jobs permanently in search of more stable employment.
Many airlines were forced to restructure as government-imposed travel restrictions caused uncertainty.
Last month, Ryanair chief executive Ryan O’Leary said the airline paid its cabin crew up to £40,000 a year, “significantly ahead of hospitality … [and] retail”.
“It’s probably double or triple of what food makers are earning,” he said.
British Airways’ bid to sweeten relations with staff and stop them hunting for more lucrative roles, comes as Britain experiences a labour crisis with vacancies surging to a record high of of 1.298 million in the three months through January amid a labour shortage and cost-of-living crisis which is encouraging workers to seek out better-paid jobs.
In December, BA was forced to pay its ground staff at London Heathrow double the usual rate to lure them back to work.
Mr Doyle’s olive branch to his staff came after former chief executive Alex Cruz laid off 10,000 staff when the airline sought to cut costs at the height of the pandemic.
Politicians called the airline a “national disgrace”.
In October, BA went on a hiring spree to recruit cabin crew to work this summer.
At the time, the airline said it had already contacted former employees who were made redundant in 2020 and had expressed interest in returning to their roles.
Unions have yet to formally discuss the bonus proposal with members, according to sources, and have until the end of the month to respond.
