GMB To Consult Members At British Airways Over Pay Deduction Of 4.5% When New National Insurance Rates Start On 6th April
BA managers have decided to pass on the company National Insurance liability of 3.1% to its employees, meaning they will be forced to pay an extra 4.5% from 6th April says GMB.
GMB, the union at British Airways, is undertaking a consultative ballot to see if members are prepared to take industrial action over reductions in their pay when the new national insurance rates are introduced on 6th April. GMB consultation with members started on the 24th February and closes on the 10th March.
From 6th April this year, as a result of changes brought in by the government, employees will have to pay an extra 1.4% in National Insurance contributions. Employers also face additional contributions. However, BA management have decided to pass on the company National Insurance liability of 3.1% to its employees. Meaning employees will pay an extra 4.5%.
Earlier this week, GMB announced that members at Heathrow will stage a rally on Monday 29th Feb over the outsourcing of IT jobs to India. See notes to editors for a copy of the GMB press release.
Mick Rix, GMB national officer, said "BA has announced record profits of £1.4bn. This week they also won the prestige superbrand award.
BA senior management can bask publicly in its recent achievements, which are due to the efforts of BA staff, however the workers that have created the company success are getting a raw deal.
The company have decided to reward those hard working BA workers by passing on the company National Insurance tax liability to those who are members of the pension schemes.
Due to changes brought in by the government from April 6th workers will have to pay an extra 1.4% in National Insurance. However BA executives have decided to pass on the company National Insurance liability of 3.1% to its employees. This means that employees at BA will pay an extra 4.5% from April.
A few weeks ago the country was in uproar about Google tax affairs. Now BA are not only avoiding their tax liability to the government but have decided to pass on its liability and force its employees to pay the company share and pay far more tax than they need to.
BA are acting disproportionately and are disadvantaging lower paid women colleagues, who in effect will be paying more of the company share of tax as a proportion of earnings, than senior managers earning above £100k per annum.
Is it any wonder that our staff representatives are demanding to be consulted on whether they should take industrial action to persuade the company to behave like a responsible superbrand employer?"
Contact: Mick Rix on 07971 268343 or Gary Pearce on 07850 036952 or GMB Press Office on 07921 289880 or 07974 251823 or 07970 863411.
Notes to editors
Copies of previous GMB press releases
1 GMB press release dated 24th February 2016
GMB RALLY AT HEATHROW ON FEBRUARY 29TH AGAINST BRITISH AIRWAYS OUTSOURCING IT JOBS AND ABUSING THE TIER 2 VISA SYSTEM
Members will make short walk from BA HQ at Waterside to meeting in protest at outsourcing and offshoring work to Tata Consultancy Services (TCS) in India.
GMB British Airways workers will hold a public meeting and rally from 12.30pm on 29th February at the Thistle Hotel, Heathrow over proposals to outsource the company’s IT end user computing jobs Tata Consultancy Services (TCS) in India.
TCS will need to carry out work in the UK and they will bring workers from India fill the jobs of the ex BA workers. GMB is accusing them of abusing the current visa regulations regarding rolling Tier 2 visas. See notes to editors for a copies of previous GMB press releases.
Local MP John McDonnell, MP for Hayes & Labour shadow Chancellor, will be speaking at the event along with GMB national officer for aviation, Mick Rix.
The details of the protest are as follows:
12.30-13.15pm, Monday 29th February
Mick Rix, GMB national officer for aviation, said “GMB members at British Airways will be making the short walk from BA HQ at Waterside, in protest at the company plans to outsource and offshore work to a company Tata Consultancy Services (TCS) in India.
BA have recently announced huge profits, and are a growing company.
The affected job losses at Heathrow in West London is around 700 people, and around 100 in Newcastle and other locations.
Gone are the days when a great British company, known globally as a superbrand, would be expected to behave in a responsible way to its workforce.
BA’s reward for their colleagues’ loyalty is redundancy and to replace them with another company’s cheap labour brought in from abroad on dubious visas.
GMB has already raised the issue of abuse of Tier 2 visas for IT workers for BA, as the regulations currently in place are not designed for this practice.
BA still want customers to pay a high price for a premium service, with a cost base of a low cost carrier.”
Contact Mick Rix on 07971 268343 or Gary Pearce on 07850 036952 or GMB Press Office on 07921 289880 or 07974 251823 or 07970 863411.
Notes to Editors
2 GMB press release dated 12th January 2016
GMB Meet MPs On Wed 13th Jan To Halt British Airways Plan To Outsource Jobs And Abuse Tier 2 Visa System
These latest developments should worry MPs and the government that UK security interests are being handed over glibly to a foreign national company says GMB
GMB representatives will tomorrow (13th January) call on MPs in the House of Commons to make representations to British Airways (BA) over plans to outsource its 900 specialist IT jobs to Tata Consultancy Services (TCS).
Last month GMB wrote to the Migration Advisory Committee and Home Office asking them to clampdown on abuse of tier 2 visas by BA and TCS following the outsourcing of the jobs. See notes to editors for copy of GMB press release dated 22nd December 2015.
There are around 900 jobs at risk, with BA IT colleagues based at various locations in the UK, at BA Headquarters at Waterside in Harmondsworth, West London, BA's call centre in Newcastle, and at other locations in Manchester, Cardiff and Scotland.
Mick Rix GMB National Officer for Civil Aviation said "GMB asked for a meeting at a senior level with BA at the end of last year. This was to discuss matters of concern to members in private about reports that safety and security lapses apparently took place on BA work already undertaken by TCS. BA regrettably declined to meet.
There are many serious matters of concern with the company proposal, not least the devastating economic impact these job losses will have on GMB members, their families and the communities where they live. There are also concerns relating to the continued security of the airline operations, UK national security, along with flights intended for the US.
BA IT staff carry out important reporting work to the UK Home Office and the US Federal authorities on required national security matters, regarding passenger and cargo lists for flights coming into and out of the UK and for fights destined to the US.
It is a shame that BA did not want to meet us privately where we could have discussed information we have obtained. I would have preferred to have had those discussions in private. We are faced with no other option due to BA’s failure to meet with senior GMB officials that we intend to brief and advise MPs on our concerns.
GMB believe these latest developments should worry MPs and the government that UK security interests are being handed over glibly to a foreign national company.
I find it incredible and of serious concern that in these times of very heightened security measures, due to the threat by terrorists to civil aviation flights, that the transfer of important national security reporting work, currently operated by BA IT staff, is to be offshored to TCS in India, so that BA and IAG can save a couple of bucks.”
3 GMB press release dated December 22, 2015
GMB Call On Migration Advisory Committee And Home Office To Clampdown On Abuse Of Visas By BA And Tata Consultancy Service
As things stand members employed in the IT department at British Airways are to be replaced with next spring with workers recruited in India and flown into the UK on tier 2 visas says GMB.
GMB, the union for staff at British Airways, commented on a report that Migration Advisory Committee are pushing for a clampdown on visas for skilled workers from outside the EU. See notes to editors for copy of report in Financial Times December 20, 2015
Mick Rix, GMB National officer, said “This clampdown on abuses of the tier 2 visas is long overdue.
As things stand GMB members employed in the IT department at British Airways are to be replaced from next spring with workers recruited in India and flown into the UK on tier 2 visas.
This is after BA outsources sections of its IT department to Tata Consultancy Services. GMB understand that Tata intend to abuse the tier 2 visas to move their own staff from India to replace our members.
GMB intend to write to Sir David Metcalf chairman of Migration Advisory Committee and the Home Office asking them to clampdown on abuses by BA and Tata Consultancy Services.”
4 Copy of report in Financial Times December 20, 2015
Plan for UK visa clampdown threatens tech companies
Gonzalo Viña, Public Policy Reporter
The UK government’s immigration advisers are pushing for a clampdown on visas for skilled workers from outside the EU, in a move that would be a blow to global technology companies that operate in Britain.
The Home Office is looking at ways to tighten the rules for “tier 2” visas that apply to internal company transfers, and the Migration Advisory Committee is expected to recommend focusing on big international businesses that move staff to projects in different countries.
Sir David Metcalf, chairman of the MAC, is due to present his proposals to the Home Office this week and his report will be made public towards the end of January. The committee would not comment on his recommendations.
Among the options Sir David is understood to be considering, is a skills levy on employers recruiting from outside the EU. While he may hold back from proposals to raise the minimum salary to qualify for a visa or to limit dependants’ right to work, companies are worried about any plans that will limit their ability to transfer employees.
Four of the top five short and long-term intra-company transfers in the year ending in March were in IT, telecoms or software development, according to Home Office data.
By country, India is top, accounting for 31,093 sponsored skilled visa applications in the year to September, followed by the US with 6,533. Companies including Infosys, Wipro and Tata Consultancy Services from India and Accenture and IBM from the US are likely to be hardest hit.
India’s National Association of Software and Services Companies said it had engaged in the public consultation and had stressed the importance of tier 2 visas.
“These skilled workers make a valuable contribution to the UK economy by delivering specialist technical knowledge and skills to British companies,” the association said.
“This is not something that we would support,” said Emanuel Adam, head of policy at British American Business. “Restricting tier 2 in any way will have a negative impact on companies and organisations assessing business opportunities in the UK.”
Controlling immigration has become one of the defining issues of David Cameron’s government and is a key factor in negotiations to reshape Britain’s relationship with the rest of the EU.
But efforts to reduce the number of people coming from Europe — often cited as a worry by voters — remain subject to the unpredictable outcome of negotiations with the rest of the bloc.
That has left the government looking to reduce workers from outside the EU in order to bring net migration down to the promised “tens of thousands” from the most recent figure of 336,000.
“We have to be extremely cautious, as this will have a very significant impact — we must not to cut off our nose to spite our face,” said Jurga McCluskey, head of immigration at consultancy Deloitte.
The number of tier 2 visas — including extensions, visas for dependants and new visas — increased by almost a third to 151,659 between 2009 and 2014, according to the Home Office. More than twice as many visas are granted for intra-company transfers as for other skilled workers with a job offer.
Matthew Percival, head of employment law at the Confederation of British Industry, the country’s biggest employers’ group, said: “The net migration target remains a blunt instrument that is not fit for purpose and should have been scrapped long ago.”
The restrictions would face stiff opposition from George Osborne, chancellor, and could sour relations with India. Last month, both countries signed a joint statement agreeing “to facilitate the temporary movement of skilled personnel” in the IT industry.
Keith Vaz, chairman of the home affairs committee of MPs, said last week the cap was “counter-productive” because it did little to reduce net migration but made it hard to find staff. Tony Haque, immigration lawyer at Baker & McKenzie, said the curbs might simply result in more workers being brought in from the EU.
Julia Onslow-Cole, the head of PwC’s global immigration practice, said Sir David was likely to recommend differentiating between traditional forms of intra-company transfers and those used mainly by the IT sector.
She also expected the committee to favour a skills levy that raises money for the exchequer, instead of increasing the salary threshold. Sir David is looking to use this money to fund apprenticeships.
The Home Office had no immediate comment.