After many months, pay discussions at Heathrow have arrived at a final offer. The talks, which commenced in October, have been set against the backdrop of the quinquennial Civil Aviation Authority (CAA) deliberations on the economic regulation of airports determining that Heathrow must reduce real-terms costs to passengers by RPI - 1.5% for the period 2014 - 2019. This has made for a particularly challenging pay round as the implication of the Q6 settlement equates to a saving of around £130m in staff costs over the five years.
The Company offer is for a two year deal and offers a non-consolidated cash payment of £1000 for 2014 and a consolidated increase on basic pay, shift pay and pay related allowances of the RPI percentage (as measured at April 2014) payable in 2015.
Meanwhile Southampton Airport cites cost pressures emanating from reduced passenger numbers and revenues set against rising costs as the basis for a below inflation offer being made to staff.
The one year proposal is for all staff covered by collective bargaining to receive a consolidated award on basic pay, shift pay and pay-related allowances of 1.1%, conditional upon the introduction of new starter rates for all grades set £1250 below the current minima and the removal of incremental pay points.
Neither the Heathrow nor Southampton offers are being actively recommended to members by Prospect and are described instead as 'the best achievable by negotiation alone'.
Consultative ballots of members at each site commence today and run until Wednesday 2nd April.