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In Airbus UK, the principle of performance pay had long been argued over, and resisted by the unions. But a partnership approach to the issue, whereby unions and management work together to resolve organisational problems, and the work of a joint management-union project team has breached the principle, and resulted in new arrangements for the 2,800 unionised white-collar staff.
These achieve the company's objectives of rewarding good performance and relating pay to the market, while meeting union members' concerns over fairness and consistency. Concerns over equal pay have also played a part in setting up the new arrangements. Airbus has retained spot rates for 5,000 manual staff, in the face of fierce opposition to any alternatives.
For more details see our review, published in the 'News' section of e-reward.co.uk, 23 march 2005.