Staff at British Airways, owned by International Consolidated Airlines Group SA (LSE:IAG), successfully negotiated a pay rise of over 13%, helping reverse pay cuts imposed during the pandemic, reflecting a similar wage bump a year prior.
Receiving pay increases over the next 18 months, 24,000 employees – excluding pilots and management – will receive a one-off payment of £1,000 on top of their new salary.
Highlighting that the agreement addresses the previous "fire and rehire" tactics which led to salary reductions for many workers, Unite Union said the deal was a result of “hard work and dedication” by its representatives.
There's potential for further pay increases too, Unite added, with an agreement in place that ensures no staff member will receive a lower increase than their rate of 2020 pay.
Sharon Graham, Unite general secretary, said in a statement: “The fact that Unite has reversed the fire and rehire cuts while also securing a large increase in pay, underlines how the union’s relentless focus on the jobs, pay and conditions of members, is delivering for workers financially.”
Additionally, Unite managed to secure "milestone reviews" and additional raises for specific worker groups within the company.
While European airlines face disruptions due to air traffic controller strikes in France and walk-outs at Gatwick, British Airways managed to avoid significant disruptions amid its negotiations with various ground handlers.
Shares in IAG lifted over 1% on Friday, having started the day trading at just over 165p.