Virgin Atlantic cabin crew will not strike tomorrow (9 January) after the Unite union agreed to a two-year deal of a 4.8% increase on basic pay in year one and then rising with inflation in the second.
Both 48h strikes ” the second was planned to start 16 January ” are off.
The deal also allows for previously-agreed increases to other variable elements of pay, and will be reviewed in April 2009.
Sir Richard Branson, president of Virgin Atlantic, said: ”We are pleased that both sides have managed to avert strike action that was planned for this week and next. The outcome is a triumph of common sense and means that our passengers need not worry about getting to their destinations.
”Our cabin crew are the best flying and continue to provide the highest standards of customer service. This agreement will enable us to focus on continuing to offer the best service to our customers.”
Unite national officer Brian Boyd, said: ”This agreement recognises the important contribution cabin crew make to the business and I am of the firm opinion that we now have the opportunity to ensure an improved relationship with Virgin Atlantic in the future.”
Both parties agreed prolonged discussions were potentially damaging to the relationship between the company, its cabin crew and the union.
It had looked as though an agreement was going to be impossible in time to prevent industrial action - the first in Virgin”s history.
Both sides were digging their heals in yesterday, when the airline published a statement saying a deal would only be possible if employees did not strike - ”Virgin Atlantic is committed to resolving this dispute but the only way our cabin crew are going to see any form of pay increase in future is by joining the hundreds of volunteers coming in to work,” it said.
ABTN contacted Unite for a reaction and a spokesman said this was ”intimidating behaviour by Virgin and not helpful for future negotiations.”
But today the same spokesman said the deal had now been accepted.
”There are some changes and the deal has actually increased because the RPI has changed from 3.5% to 4.3% - so it”s now a 9% deal over 24 months. Plus there”s a commitment to look at the overall relationship between the union, Virgin and employees ” in the big scheme of things it”s a good thing.
”We wanted to avoid industrial action, and it”s been accepted.”
Unite had actually recommended Virgin”s proposed deal to its members ” a two-year increase to basic pay equating to an 8.4% increase during the period ” but when it was voted down a strike seemed certain to go ahead.
” In further Virgin news, plans for its premium-only service have been ”put on ice” because of a lack of progress in Stage II of Open Skies.
”What”s the point in introducing a service when it will be wound up a year and a half later? There”s been no progress on Stage II,” said an airline spokesman.
Open Skies begins in March this year, but the agreement is due to finish in 2010.