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BT pay deal averts strike action | BT pay deal averts strike action |
(about 1 hour later) | |
BT called the deal 'unprecedented' | 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. | 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. | 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. | 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. | 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. | 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' | 'Fantastic deal' |
"This agreement is good for BT, its employees, shareholders and customers," BT chief executive Ian Livingston said. | "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. | "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." | "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. | 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." | "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% higher on the back of the announcement. | |
Ian Watt from Enders Analysis said the 9.3% offer "sounded impressive" but in reality was "just keeping pace with inflation". | |
Ballot impact | Ballot impact |
The CWU had opened a ballot on industrial action last month but cancelled it on Monday following legal advice. | 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. | "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 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. | 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. |