CWU Ballot On After BT Contempt For Staff

The Communication Workers Union is today (Thursday 10th June)) pressing ahead with a nationwide industrial action ballot after five hours of talks yesterday with BT broke down. CWU has made it clear that only a significant improvement on the original pay offer of 2 per cent for 2010 will bring this dispute to a close but BT has refused to budge despite soaring profits, huge bonuses for senior executives and a 6 per cent payout for shareholders.

The CWU has issued notice to BT that ballot papers will be sent out on Friday 18th June.

Andy Kerr, CWU 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. Also, in regard to repatriating work from India, we have been in a separate set of negotiations with the company for over a year regarding resourcing arrangements for this so it is disingenuous to claim this is 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.”

Ballot Timetable


18th June
Ballot papers sent out

5th July
Ballot closes. Result announced.

Background to the pay dispute:

· BT made in excess of £1 billion profit last year and exceeded forecasts by doubling free cash flow to £1.9bn while making £1.75bn in cost savings – partly delivered through a pay freeze, 30,000 redundancies and changes to its pension schemes which CWU helped the company with.

· BT has paid out an increased shareholder dividend of 6% this year.

· A pay deal of 5% for CWU grades would cost the company 3.6% of free cash flow.

· BT executives have received generous bonus payments, including:

  • Ian Livingston CEO - basic £850k plus annual bonus of £1,206k, total up by 79% on 2009. He is also set to get a 6% pay rise this year, but has pledged to take a 2% pay rise and donate the rest charity.
  • Sir Michael Rake, Chairman total of £670k up from £630k – a 6.3% rise - in 2009 for working part time.
  • Hanif Lalani, ex Finance Director, total of £1,166k, up from £805k in 2009, a rise of 44.8%.
  • Patricia Hewitt, non executive director who helps to decide remuneration - £128k up from £75k for just a few days a month.
  • Gavin Patterson, BT Retail CEO, total of £1,133k, up from £698k in 2009, a 62.3% increase.
  • Tony Chanmugam, Finance Director, is set for a pay rise worth more than 7%.

· CWU rejected BT’s original offer of 2% plus £250 and a possible additional £250 based on meeting undisclosed targets next year. BT has claimed that the total payments would be equivalent to a 5.4% pay rise, however this would only be true for seven people in the company who earn a salary of just over £14,000 and the final £250 would not be paid – if at all – until June 2011. The revised offer makes no material improvement in the pay offer for 2010.

· CWU represents over 50,000 people in BT in the UK who work in call centre, engineering and retail roles.

· The last national strike in BT was in 1987.

Source: CWU Press Release

See also BT Pay Campaign 2010

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