BT pay deal averts strike action

BT called the deal ‘unprecedented’

BT and the Communication Workers Union (CWU) have reached a deal on staff pay, averting the threat of strike action.
The agreement will see BT workers receive a 9.3% pay rise over 39 months, the two sides having failed to reach agreement on a one or two-year deal.
BT had previously offered a 5.1% rise over 21 months; the CWU had wanted a 5% rise for 2010-11 alone.
The company described the deal as “unprecedented” while the union said it was “fantastic” for its members.
Under the agreement, staff will receive pensionable pay rises worth 3% each financial year from April 2010 to March 2013, with the rise being backdated to January 2010.
‘Fantastic deal’

















“This agreement is good for BT, its employees, shareholders and customers,” BT chief executive Ian Livingston said.
“BT will benefit from a long period of certainty whilst our employees will have financial stability during uncertain economic times.
“I am pleased that we have been able to work with the union’s leadership to resolve this matter as industrial action would have been in no-one’s interest.”
CWU deputy general secretary Andy Kerr said: “This is a fantastic deal for our members, providing a fair rise in their basic pay this year and for the following two years.
“This deal is among the highest pay settlements in the country this year, recognising the contribution of staff and BT’s success over the last year.”
Shares in BT rose 2.3% to 139.1p shortly after the announcement was made.
Ballot impact The CWU had opened a ballot on industrial action last month but cancelled it on Monday following legal advice.
“Although our ballot for strike action was ultimately withdrawn, we believe it played a major part in getting BT back to the negotiating table with a significantly improved pay offer,” Mr Kerr said.
The CWU, which represents 55,000 BT workers including engineers and call centre workers, will now hold a consultative ballot of its members recommending that they endorse the deal in the coming weeks.
The union had previously argued that BT could afford a 5% rise over one year after the company reported a £1bn annual profit and revealed that chief executive Ian Livingston would be paid a £1.2m bonus for his work last year.

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BT workers to vote in strike ballot

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Last updated at 4:38 PM on 10th June 2010

Workers at telecoms giant BT will vote in the next few weeks on whether to strike in a dispute over pay following the breakdown of peace talks, it has been announced.The Communication Workers Union, which represents over 50,000 employees at the company, said the ballot will open on June 18, with the result expected on July 5.The union said only a ’significant improvement’ on an original 2% pay offer for this year would resolve the row.The firm made a fresh offer earlier this week which it said was worth 5.1% over 21 months, several additional one-off payments and guarantees on job security.
Wrong number: Only improvements on the existing pay offer will avert a strike
But the CWU has been seeking a 5% increase for this year,
highlighting BT’s ’soaring’ profits, huge bonuses for senior executives
and a 6% payout for shareholders. Andy Kerr, the union’s deputy general secretary, said: ‘Things have
undoubtedly got worse since our meeting with BT yesterday. The company
is now showing complete contempt for staff and for the reasonable pay
rise we are seeking for our members in the company.’BT’s revised offer failed to make any material improvement in pay
for 2010 which we have made crystal clear is the key to resolving this
dispute. While we are happy to consider a two-year deal, there must be
an improvement in pay for this year.
‘BT has been misleading in the way it has presented other elements of
the revised offer. For example, the union has always worked with BT to
avoid compulsory redundancies so the inclusion of this in any deal
appears to be more of a threat than an offer.’Mr Kerr said the union had been in ‘disingenuous’ to claim this was
a new offer.’If BT is willing to make a genuine improved offer we will
of course meet them to try to find an end to this dispute. In the
meantime we have no option than to press ahead with balloting our
members for strike action.’Our members are amazed at the aggressive attitude of the company
and the contempt with which they are being treated. The victimisation
of many of our members and reps - which has included direct
communications from the company threatening that staff will get a pay
freeze if they take industrial action - is adding to the anger and
outrage at blatant double standards when it comes to remuneration for
those at the top of the company.’We want a fair and affordable rise and we will not stop until BT understands this.’
A BT spokesman said: ‘We are astonished the CWU have rejected an
improved offer which would have given their members job security.
‘Our offer is considerably more generous than those they’ve accepted elsewhere, including at some of our competitors.
‘BT has moved several times over recent months but the union have
remained rooted to the spot, demanding a pay rise that is out of line
with the current market.
‘Their demand for 5% this year alone is simply unrealistic and we
would question how many major companies are making such an offer in the
current environment.’
BT released details of its revised offer, which included a 2% pay
rise from April 2010 to December 2010, followed by a 3% increase in the
2011 calendar year, which the company said equated to a 5.1% rise over
21 months.
The firm has also offered a lump sum payment for the first three
months of 2010, worth 0.5%, a guaranteed bonus of £250 per employee to
be paid in July 2010 rather than December 2010 as previously planned
and a further bonus of £250 in mid-2011 subject to BT’s performance in
the 2010/11 financial year.
BT said it had also given a guarantee of no compulsory redundancies among direct
BT staff in the UK between now and the end of 2011.
A further review would be held in October for more than 7,000 staff
that could see them receive an additional 5% increase in consolidated
and pensionable pay, said a spokesman.
BT is also offering to see if work carried out by third parties can be brought back in-house.

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