BA to meet unions over pension plan

British Airways (BA) is meeting trade unions today to discuss a plan by the carrier to tackle its budget deficit, a union spokeswoman…

British Airways (BA) is meeting trade unions today to discuss a plan by the carrier to tackle its budget deficit, a union spokeswoman said.

The spokeswoman for the GMB union said talks on the pension scheme had been ongoing with BA for many months.

"There is a meeting between BA and all the unions on Thursday," she said last night.

Her comments came after BA said it had agreed to make a one-off injection of £800 million and pay up to £50 million a year for three years to tackle its £2.1-billion pension deficit.

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The company said it agreed the funding plan with the trustees of its main New Airways Pension Scheme. It still needs to reach an agreement with the unions.

In a sign of possible trouble ahead, however, the Timessaid the GMB union had threatened to ballot members over strike action if BA failed to back down on its pension deficit-cutting plans.