 BA says its pension is one of the most fundamental issues it faces |
Shares in British Airways have risen after news late on Friday that the firm's largest union would back BA's pension proposals. The Transport and General Workers Union (T&G) has recommended that members back BA's plans that would cut the �2.1bn pension deficit by more than half.
BA's proposals include a one-off payment of �800m to the pensions fund for its 33,500 company pension holders.
Its shares rose some 3% in early trade, before later sitting 1.6% higher.
Union vote
T&G - which is BA's largest union with some 20,000 members - said more details would be released on Monday about the proposals.
Members will need to vote on the proposals, which the union said would likely happen in the next few weeks.
After Friday's meeting, BA said the new proposals would help resolve one of the biggest issues the company faced.
BA paid �235m into the fund in 2005 and has previously said that unless employee benefits were changed, payments would have to rise to �497m yearly.
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