BT and the union, CWU, reached an “unprecedented” deal on staff pay, averting strike action. BT workers will get a 9.3 percent pay rise, over 39 months, because of the failed to hit an agreement
on a one or two-year deal. The employer had originally offered a 5.1 percent rise over 21 months; and the union had wanted a five percent rise for this year alone.

BT described the deal as “unprecedented” while the union were somewhat more hyperbolic describing it as “fantastic” for its members. The agreement means staff will receive pensionable pay rises of  three percent each financial year from April 2010 to March 2013, with the rise being backdated to January 2010. “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 ended Friday 3.2 percent higher on the back of the announcement.

The CWU had balloted for industrial action last month but cancelled it on legal advice. And it is believe that this withdrawal played a major part in getting BT back to negotiate with the mutually agreeable offer the result.

The CWU, represents 55,000 BT workers ranging from engineers to call centre personnel, and it is preparing a consultative ballot to members with the recommendation that they accept the deal. CWU had previously based its dissatisfaction to BT’s previous offer on the basis of its reported a £1bn annual profit and revealed that chief executive Ian Livingston would be paid a £1.2m bonus.

12 July 2010

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