Reward
We operate two funded principal defined benefit pension schemes in the UK, the Airways Pension Scheme (APS) and the New Airways Pension Scheme (NAPS). Both are closed to new members. From April 1, 2003 we commenced a new defined contribution scheme, the British Airways Retirement Plan (BARP).
Total members
In April 2007 we introduced changes to future service benefits as part of a 10-year programme to fund the deficit in NAPS. The changes provided people with choices about their level of future pension savings and benefits.
In February 2008, we also introduced a SmartPension arrangement, which allows our UK-based employees to make their pension contributions in a more tax-efficient way. The changes were introduced with trades union support and around 90 per cent of those eligible are now benefiting from this arrangement.
We operate an Employee Reward Plan (ERP) allowing our non-management workforce to share in the success of the business. The plan, introduced in 2005, awards amounts to employees based on our performance against a balance of financial and non-financial measures. These measures cover operational, customer and financial performance and the plan helps to reinforce the importance of all the various factors that affect our overall performance.
Management bonus schemes use the same financial and non-financial performance metrics as the ERP, but also include employee involvement as a further measure. Our managers are also rewarded for their individual contribution towards achieving the Company’s goals and targets.
We also operate a recognition scheme, known as Bravo. The scheme enables people across our business to be recognised for their efforts and achievements. The Bravo scheme was reviewed and revised during the year, resulting in a significant increase in the number of awards being made.
In November 2007, we concluded consultations and announced a revised staff travel package, which will be launched in April 2009. The changes will make this employee benefit simpler, fairer and more flexible, and is designed to give greater choice.
Headcount
As at March 31, 2008, we employed 42,377 manpower equivalents (MPE). There has been an increased level of attrition during the year, particularly within the Contact Centres and Gatwick cabin crew. Average attrition is still low at 8 per cent. Our employment costs have reduced year on year, due to the pension changes, reduced severance costs and higher productivity achieved through changes in working practices.