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Under a new union agreement, British Airways pilots would take a cut in pay in order to help out the financially-troubled airline.

The deal that was agreed by BA and the British Airline Pilots Association (BALPA) also involves 78 voluntary redundancies.

According to the terms of the agreement, 3,200 pilots would see a 2.61 per cent cut in basic pay from October of this year. In addition, they would also see a 20 per cent reduction in additional pay they receive while flying.

The Civil Aviation Authority (CAA) has said that British Airways pilots earn £107,000 per year, on average, including extra allowances.

Members of BALPA still have to ratify the deal. They account for 95 per cent of all pilots working for the carrier. Other changes in productivity are also part of the agreement, which include less time on the ground between short-haul flights.

If BALPA members endorse the agreement, it would be binding on those who do not belong to the union as well.

In exchange for accepting the pay cut, the pilots would receive a total of £13 million in share of BA to be divided up among them. They would be free to sell their shares after a three-year waiting period.

For more information on this article please visit www.telegraph.co.uk.

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