The British Airline Pilots' Association (BALPA) has reached a draft pay and productivity package with BA which would see pilots deliver a permanent annual saving programme of £26 million from 1st October 2009. The package will now be put to membership ballot with a recommendation to accept.

The pay and productivity package will help BA get through the current economic downturn whilst, for the first time, giving pilots the mechanism to take a real share in the wealth they will help to create.

Pilots will each take a wage cut of 2.61per cent on their basic pay in October this year. In addition they will take a 20 per cent cut in flying time allowances. This will generate £16 million of annual savings.

The productivity part of this package includes an increase in annual duty hours, the delivery of shorter turnaround times on short haul flights and reductions to the crew arrangements on certain long haul routes. This will generate £10 million of annual savings.

Pilots will benefit from a groundbreaking long term incentive scheme. In June 2011 they will be eligible to receive BA shares worth £13 million if certain company targets are achieved. The pilots will individually have to hold these for three years, to June 2014, when they will be free to sell them or hold them. If conditions improve sufficiently the value of the shares could increase in that three year period.

''This is a unique agreement,' said BALPA General Secretary Jim McAuslan. 'We have always said that as a union we would share the pain if our members shared in the gain.'

'We have been doing some intensive research and polling over the last 2 months. Our research indicates that BA is facing a real business challenge and this is not the case of the employer crying wolf' Jim McAuslan said, 'Our polling of BA pilots over the last two months indicates the approach they want their union to take in responding to that challenge. We believe we have delivered on that and are therefore hopeful for a strong Yes vote'

The package also allows for up to 78 voluntary pilot redundancies as a result of changes to productivity. There will be no compulsory redundancies as part of this package"

The package will be put to the vote of all BA pilots who are members of BALPA. (There are 3,200 pilots in the airline and 95 per cent of them are BALPA members). Voting forms are expected to go out this week, with a 3 week voting period.

Jim McAuslan concluded: 'This is groundbreaking and is a reflection of the unprecedented trading environment. BALPA recognises that the potential for significant reductions in the flying programme due to BA's intention to ground up to 16 aircraft may yet lead to further challenges over pilot surpluses. That is a challenge that we shall rise to, if it occurs. But BA pilots by themselves will not deliver the change needed to see BA through this downturn. We hope that everyone in the company will do their bit so that we all come through fit to thrive in this toughest of market.'