Originally Posted by
Paralytic
Who says the saving are only £3M?
No-one has yet answered my question as to whether the impacted staff are on final salary pensions. If so, the additional savings in BA's pensions contributions and reduced liability could be significant.
Those on the two final salary schemes (APS and NAPS) would already have at least 14 years pensionable service, typically 20 years or so, and my envelope assumed the annualised impact would be fairly neutral, since the few affected would be more likely to go for redundancy (though that does reduce future liabilities). Having said that, I'm not saying my calculation is accurate, I'm saying it's more likely to be £2m to £5m area than (for example) £20 or £50m. I'm surprised any BA bigwig is prepared to get out of bed for that - I certainly wouldn't, the NPV looks very close to zero to me, and (say) 3 or 4 strike days will kill it off. Their legal bill alone will quickly stretch into 6 figures.