Three-tier bonus system to replace illegal BAcontracts

Three-tier bonus system to replace illegal BAcontracts

BRITISH Airways has come up with a three-tier bonus system for agents to replace its current contractual agreements which were ruled illegal by the European Commission.

Head of UK and Ireland sales Tiffany Hall presented agents with a draft outline of the plan last week which is based on the payment of a standard commission rate to all agents plus the three-tier bonus system. The first two tiers reward sales of BA tickets. Agents are paid one level of bonus for sales made for clients who do not have a corporate agreement with BA, and a lower rate for sales made for clients who do. BA will pay agents on the second tier an additional fee to compensate for their shortfall.

The third tier will reward agents for their level of service. The EC has said it is legally acceptable for BA to incentivise its agents if they can prove they are providing a value-added service.

BA is to meet agents again later this week to provide figures which will enable agents to make an informed decision.

The proposal is a short-term solution to enable BAto meet the August 31 deadline for new contracts and will be reviewed in April 2000.


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