GMB call on Heathrow to reverse “kick in the teeth” reneging on paying London Living wage from April 2020
Historically the GMB union, which has the most members at Heathrow, have lobbied strongly all along the way for Heathrow expansion. They hope for more jobs. Even better paid ones. But Heathrow has often not done much to help its workers. With a struggle, in 2018, the GMB managed to get Heathrow to agree that contracted workers would be guaranteed London Living Wage of £10.55 per hour by April 2020. Now the GMB says workers are devastated to learn that “Heathrow Ltd have informed contract companies within its direct supply chain that is reneging on its agreement to fund implementation of the London Living Wage to its employees that was promised to workers from April 2020 onwards.” GMB says this is unfair. Heathrow is currently only working (from 6th April) with one runway due to the dramatic decline in air travel due to Covid-19. The GMB says Heathrow much honour its agreement, to ensure workers (security, cleaning) etc still working at the airport – employed by outsourced contractors – get the Living Wage from April 2020. Workers were expecting this rise in their wage packets this April.
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GMB call on Heathrow to reverse “kick in the teeth” reneging on paying London Living wage from April 2020
By London-Post
April 2, 2020
Workers are totally devastated and crushed by being hit with a sledgehammer with this unfair news says GMB London
GMB, the union for aviation workers, is demanding that Heathrow Ltd honour its agreement to fund London Living Wage of £10.75 per hour to its low paid workers at the airport employed by outsourced contractors from April 2020.
This call comes in response to Heathrow Ltd who stated that ” it is a proud London Living Wage employer and champions the Living Wage Foundation’s work in line with their values and commitments.
This is a very important commitment to us, but we understand the financial strain that faces many of our suppliers, Therefore, we have taken the very difficult decision to pause London Living Wage implementation across the supply chain”.
Perry Phillips, GMB Regional Organiser for Aviation at Heathrow, said:
“GMB has learnt that Heathrow Ltd have informed contract companies within its direct supply chain that is reneging on its agreement to fund implementation of the London Living Wage to its employees that was promised to workers from April 2020 onward.
“This is a huge kick in the teeth for GMB members who continue to work for contracted companies such as ISS terminal cleaning and Mitie security. These are workers who during this time of the coronavirus pandemic have put their lives on the line to provide a safe service to passengers from all over the world. They are now being told that the agreement to be paid the London Living Wage is to be temporary suspended.
“This is both unfair and down right outrageous. Year on year Heathrow has continued to announce record profits and revenue where millions have been paid out to shareholders. Paying workers who live on very low wages should be a priority.
“Workers are totally devastated and crushed by being hit with a sledgehammer with this unfair news.
“GMB members and staff who work for Mitie security and ISS terminal cleaning have continued to work and are still working to ensure that the Airport is clean and safe and have also put their own lives on the line and should be rewarded now with what was promised to them. This still affordable to Heathrow and those companies that are still working and providing a service to the Airport during this coronavirus pandemic.
“I am calling on Heathrow to reconsider its decision to stop the implementation of the London Living Wage rise and to do the right thing by honouring its agreement and pay it to those workers who are expecting it in their wage packets from April 2020.”
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https://www.gmblondon.org.uk/news/gmb-calls-on-heathrow-to-make-airlines-and-indirect-contractors-pay-london-living-wage.html on 4th March 2020
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https://www.caasint.com/15091-2/
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See earlier:
Mass Heathrow demo to call for living wage
25 Apr 2019
Article By GMB Union @GMB_union
press.office@gmb.org.uk
Hundreds are set to join a mass protest at Heathrow to call for airport bosses to pay all 90,000 workers a wage they can live on.
The ‘flying pickets’ demonstration, featuring live music and dancing, takes place as follows:
April 27, 2019, from 10.30am to 14.30pm Capital Place, 120 Bath Road, Heathrow UB3
Following GMB’s long-running campaign, last year, Heathrow announced all contracted staff working at the airport would be paid the London Living Wage of £10.55 per hour by 2020.
Now GMB is urging the airport to make sure all staff – including contractors – are paid at least the London Living Wage (Currently £10:55 per hour)
2018 was the busiest year in Heathrow’s history, bringing in £3 billion revenue and 80.1m passengers.
Perry Phillips, GMB Regional Organiser, said:
“GMB is demanding the London Living Wage for all Heathrow workers.
“We call on Heathrow to honour its commitments and ensure that not only directly employed staff, but also the thousands of workers in the airport’s supply chain are paid a wage they can live on. Contractors at the airport are not signing up to Heathrow’s commitment, meaning workers and their families are still suffering as a result of being paid a poverty wage.
“Heathrow is thriving, but that success is built on the back of 1000s of workers who keep the airport clean, safe and operational.
“They need to share in Heathrow’s success.”
https://www.gmb.org.uk/news/mass-heathrow-demo-call-living-wage
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See earlier:
Heathrow’s shareholders get £500m as profits rise (including income of £126m from car parking)
IAG, the owner of British Airways, is angry that Heathrow has paid out £500 million in dividends to its foreign investors while charging its airline customers more. IAG says the dividend payments – now totalling £3.5 billion since 2012 – make Heathrow more costly for airline passengers (so slightly deterring them from flying perhaps). Heathrow said “It is right that our shareholders receive returns in record years and it will ensure we expand whilst keeping airport charges close to 2016 levels.” Heathrow’s top shareholders include the Qatar Investment Authority, Singapore’s GIC and the China Investment Corporation. Its largest single investor is Spain’s Ferrovial. The only UK shareholder is the Universities Superannuation Scheme (USS) with a 10% stake. Heathrow’s figures out last week show revenue growth of 3% to £2.97 billion in 2018 with 80.1 million passengers (up 2.7% from 78 million). Car parking income was £126 million (up 5% from £120 million in 2017). Retail revenue per passenger was £8.94 (up 5.8% from £8.45 in 2017). Total retail income was £716 million (up 8.6% from £659 million in 2017). Heathrow paid £70 million (2017: £53 million) in corporation tax. Out of £2,970 million total revenue.
https://www.airportwatch.org.uk/2019/03/38904/
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How Heathrow has been getting away with paying so little tax to the UK government March 9, 2019
9th March 2019
UK tax rules have allowed airports like Heathrow to pay far less tax than they should. It is estimated that Heathrow’s foreign owners have been able to get a tax break of perhaps £120 million per year from the UK government. And the airport’s shareholders (which include the governments of China, Qatar and Singapore – with only 10% by the USS being British – .have paid themselves about £3 billion in dividends in 5 years. Rules on how firms can cut tax bills due to large debt interest payments began in 2017, but the Treasury has given an exemption for infrastructure projects like Heathrow. The think-tank, Taxwatch, said: “In the case of Heathrow, the benefits of the exemption appear to flow overwhelmingly to the owners of the company.” …”The company was bought using a huge amount of debt. Instead of paying back the debt themselves, the new owners managed to push this liability on to Heathrow, making the company liable for large interest payments… The large debt repayments wiped out the company’s pre-tax profit.” Revenues at Heathrow have risen to £2.9billion but its owners have paid little corporation tax, due to massive debts. Between 2007 and 2014 the group reported a total pre-tax loss of more than £2 billion, and paid just £15 million in corporation tax. In the past 3 years it declared pre-tax profits of more than £1 billion, leading to corporation tax payments of £122 million (ie. £70 million in 2018 and £53 million in 2017.
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