BMI to land in high court as Unite's legal action takes-off
20-Sep-2010 Unite, Britain's biggest union, is taking BMI to the high court for reneging on a pay increase worth up to £6 million which was promised to more than 3,000 staff at the airline.
The action is thought to be one of the first of its kind, with Unite taking BMI to the high court for breach of contract. A three year pay agreement was entered into in 2007 between Unite and BMI, providing pay rises in 2007, 2008 and 2009. The first two pay rises were paid, but due to economic circumstances the union agreed to accept a deferral of the 4.75 per cent pay rise due on April 2009 to 31 March 2010. However, in early 2010 it became clear that the company did not intend to honour the agreement. BMI even claimed that honouring the agreement would result in job cuts.
The previous owner of BMI was paid £320 million by the new owners Lufthansa around the same time as the original agreement was signed. BMI employees have not received any pay increase since 2008. Unite has therefore notified CEO Mr Wolfgang Prock-Schauer of its intention to pursue high court action to resolve this matter.
Unite's national officer, Brian Boyd, said: "Unite is lodging a high court claim against BMI because the company owes its employees a long overdue pay increase. Staff agreed to defer the increase to help the company during difficult times, they are still waiting for the company to honour its end of the bargain. Staff have not had an increase in earnings since 2008. Lufthansa - which owns BMI - is a huge airline, and employees need reward for their dedication and loyalty. Unite remains available to meet with BMI but we have already made clear what we consider an acceptable solution."
The agreement reached on pay covers all employees at BMI mainline, BMI regional and BMI baby. Unite's lawyers wrote to BMI's CEO on 8 September notifying the company that they have been instructed by Unite to commence proceedings in the high court.