LONDON- British Airways (BA) has been criticized for underpaying thousands of cabin crew below the UK’s national minimum wage, prompting public outcry and government action.
This violation has spotlighted the airline’s labor practices and executive compensation disparities.
Wage Gaps at British Airways
The UK Department for Business and Trade released a list of over 500 companies that underpaid workers, placing British Airways as the seventh worst offender.
According to official data, the airline failed to pay a total of £231,270 in legally required wages to 2,165 members of its cabin crew.
This wage violation primarily affected the airline’s ‘Mixed Fleet’ cabin crew, introduced after a labor dispute with senior ‘legacy’ staff.
The new group was promised competitive wages, but often received significantly less. In 2017, full-time employees earned just £18,640 annually, barely above the legal minimum, and in some cases as low as £16,000, according to union reports.
The situation was serious enough to prompt a 73-day strike by the Unite union, which condemned the working conditions and alleged “poverty pay.”
Employment Rights Minister Justin Madders strongly criticized employers like British Airways, stating, “There is no excuse for employers to undercut their workers.” He emphasized the government’s goal of ensuring fair pay across all industries.
Airline’s Response
British Airways acknowledged the issue, stating that it discovered the underpayments through a 2017 audit.
The airline claims the wage shortfall was limited to the first two months of employment for some new hires between 2014 and 2017. The company issued backdated payments and apologized to affected employees.
In an official statement, the airline noted, “We’re among a large number of companies included in a list relating to the National Minimum Wage, published by the Department for Business and Trade.” The carrier insists that corrective actions were taken years ago.
Reported by PYOK, British Airways remains the only major airline named in the government’s list, aside from its subsidiary, British Airways CityFlyer.
CEO Bonuses vs Cabin Crew Pay
The controversy gained renewed attention after it was revealed that British Airways CEO Sean Doyle received a £2.1 million ($2.8 million) bonus after selling 650,000 shares.
This long-term incentive reward stands in sharp contrast to the modest wages and limited bonus opportunities available to cabin crew.
In 2024, the airline allowed cabin crew access to a performance-based bonus scheme for the first time.
However, the maximum payout is capped at 4% of their base salary, and only if British Airways exceeds ambitious financial targets.
Many staff members view the offer as insufficient compensation for their efforts and contributions to the airline’s post-pandemic recovery.
British Airways’ Crew Structure
Following the COVID-19 pandemic, British Airways disbanded its ‘Mixed Fleet’ and merged all Heathrow-based cabin crew into a single fleet.
While newer staff still earn less than their more experienced peers, their pay is considerably better than during the contentious ‘Mixed Fleet’ era.
The wage violations and internal wage gaps continue to draw criticism, particularly when juxtaposed with the financial rewards granted to top executives.
The government and trade unions maintain pressure on employers like British Airways to uphold wage laws and treat all employees with fairness and dignity.
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