British Airways is set to increase the wages of roughly 24,000 employees by 13.1% over the next 18 months.
The decision, as announced by the ‘Unite the Union,’ a trade union, reflects the recent increase in the UK’s inflation rate and the recovery in the travel sector following the pandemic downturn.
This also includes a one-time cash incentive of £1,000 for the staff, alongside another pay raise if the inflation rate continues to rise.
The inflation rate in the UK reached a historical 41-year peak at 11.1% last year. As of June, it has moderated to 7.9%, still remaining the highest amongst leading economies.
The proposed salary rise was put to a vote by British Airways employees, who agreed to the offer, according to a statement by Unite.
British Airways, a part of the IAG conglomerate, had to implement severe staff reductions during the pandemic, with over 10,000 employees leaving.
However, with demand for travel recovering to levels seen in 2019, the company has resumed hiring, contributing to IAG’s quarterly profit surpassing analyst expectations by 40%.
The union stressed that this agreement nullifies the airline’s policy during the pandemic’s peak, which included severe layoffs and rehiring at reduced salaries.
