British Airways staff have rejected a pay rise of just over one per cent a year.

Unions have warned a pay dispute could lead to a summer of delays and cancellations if pay and pension concerns are not resolved and members strike.

The rejection of the offer of a four per cent rise over three years came as unions launched a campaign to protect pay and pensions.

Staff at the airline are also worried about a £900 million shortfall in the company's pension fund.

Amicus, the union which represents British Airports Authority workers and cabin and ground staff working for the major airlines, wants to enure pay keeps up with the cost of living.

National officer Bob Shannon said: "The union is determined to ensure our members do not foot the bill through a rise in pensions contributions."

A British Airways spokeswoman said: "We have tabled a one per cent pay offer but we have said that will increase if we reach an agreement with our employees so they either reduce their pension benefits or increase their contributions."

Tuesday March 16, 2004