[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Friday, 6 October 2006, 13:40 GMT 14:40 UK
Union warns over BA pension talks
BA aircraft taking off
BA and T&G are set to meet again for further pension talks
Talks between British Airways and the Transport and General Workers Union (T&G) over the firm's pension deficit could collapse, the union has warned.

"It could be that we fail to agree with all the uncertainty that a talks breakdown means," the T&G said.

BA warned recently that its pension deficit was set to double to 2.1bn, and proposed raising the retirement age and cutting benefits to fund the gap.

After discussions on Thursday, both parties are set to meet next Wednesday.

Further talks

"We have made it clear to BA in a series of meetings that the package of cuts is unacceptable," said Brendan Gold, national secretary for civil aviation at T&G.

BA has proposed raising the normal retirement age to 65.

The airline plans to keep its final salary pension scheme, with no increase in staff contribution rates, and will make a 500m one-off payment if unions agree to new arrangements.

"We will meet again next Wednesday but BA managers need to demonstrate that they have listened and are prepared to move," said Mr Gold.

Previously, BA's chief executive Willie Walsh has described the company's proposal as "a fair solution".

BA pension deficit to hit 2.1bn
29 Sep 06 |  Business
Employers reduce pension deficits
28 Jun 06 |  Business
Talks due on BA pension shake-up
26 Apr 06 |  Business
BA investigated on fuel surcharge
22 Jun 06 |  Business
BA pilots prepare for long strike
09 Feb 06 |  Business

The BBC is not responsible for the content of external internet sites

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Americas Africa Europe Middle East South Asia Asia Pacific