CWU Response To Latest BT Pay Offer
The Communication Workers Union today (Tuesday) can confirm it has received a revised offer from BT. CWU is disappointed that there is no material improvement in the pay offer for this year but has written to the company indicating a willingness to meet to discuss the revised offer on the assumption there is scope for significantly improving the 2 per cent increase in base pay in settlement of the 2010 pay claim. Until any real progress is made, CWU will press ahead with balloting members on industrial action.
 Andy Kerr, CWU deputy general secretary, said: "We're very disappointed that BT's revised offer remains materially unchanged for this year in terms of pay.
"As we've made clear, 2 per cent is unacceptable for our members as it does not reflect the reward they expect given the contribution they have made to cost savings of £1.75 billion and profits of over £1bn. In addition, inflation is at 5.3 per cent and staff are comparing this offer with the large salary rises and bonuses for senior executives which expose the blatant double standards being adopted by the company when it comes to remuneration.
"BT's decision to leak their offer to the media today has also raised trust issues for us with the company. We will meet BT to discuss whether an improved offer exists but we will continue to press ahead with plans to ballot our members on industrial action in the absence of any real progress on pay."
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 their pension schemes which CWU helped the company with.
- CWU rejected BT's 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.
- 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 represents over 50,000 people in BT in the UK who work in call centre, engineering and retail roles.
BT Pay Claim 2010
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