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BT Pay Deal Backed By CWU Members
Update 9th July BT Pay 2010 - Final Offer Following the Branch Forum yesterday on the BT Pay Review 2010, the TFS Executive have met and agreed to recommend BT’s final offer to members. BT’s final offer for pay increases for all Team Member NewGRID grades is as follows:
BT Pay Offer 2010 – Effect on Current Maximum Pay Rates
The offer is within the top range of pay settlements in April as recorded by Incomes Data Services (IDS Pay Report July 2010). We will be making arrangements to hold a consultative ballot of our affected members and information regarding the timetable will follow. Although our ballot for strike action was ultimately withdrawn, feedback from members and branches indicated that there was overwhelming support in favour of a yes vote. Combined with our clear commitment to re-ballot in the absence of an improved offer, this would have played a major part in BT’s decision to invite us back to the negotiating table with a significantly improved pay offer. I would like to thank branches for your hard work, your commitment and your determination over the last few weeks in taking the union’s message to the members and galvanising their support for the campaign. Through our collective efforts we have achieved a pay settlement that the Executive believes is fair and affordable in the current climate. Yours sincerely,
Andy Kerr Deputy General Secretary (T&FS)
Update 6th July BT Pay Ballot 2010 -Message From Dep General Secretary Since the union served formal Notice to BT on 10th June of our intention to ballot for strike action, BT has made a number of legal challenges to the Notice of ballot. The CWU has sought the advice of our legal representatives following receipt of the first legal challenge, and we have responded to each of the company’s letters vigorously defending the union’s position. Towards the end of last week we sought further legal advice which was received this morning, and which makes clear that the legal position is not in the union’s favour. As a result of this advice, we have taken the decision to withdraw the ballot rather than take the union through a lengthy and expensive process of litigation which is clearly against us. The ballot has been cancelled with immediate effect and the appointed independent scrutineer will therefore not be issuing a ballot result. Although the CWU made every effort to address the various legal requirements associated with running a statutory ballot for industrial action, unfortunately the balance of power is not with us on this occasion and once again the formidable strength of the British anti-union laws in preventing unions exercising the right to strike in defence of their members’ interests is manifested. Since notifying BT today of our decision to withdraw the ballot, the company have been in correspondence with us asking us to enter urgent discussions with a view to resolving the current pay dispute. The TFSE considered this today and it has been agreed that we will meet with BT urgently. The Branch Forum scheduled for 8th July in London will take place at which branches will receive a fuller report. It is important that you send a representative to attend this meeting. I can confirm that we will be taking the necessary steps to ensure that we have the required information to comply with the legal process so that we can issue a fresh Notice of Ballot as soon as possible. However, in the meantime as stated above we will be speaking to BT to see if a resolution to the dispute can be achieved. We will be issuing an email to CWU private email addresses and CWU email addresses letting members know the ballot has been withdrawn, but I would be grateful if branches could also ensure this message is brought to the attention of members. I would like to thank branches for your hard work with this campaign over the last few weeks and for your continued support in seeking a fair pay settlement in the BT Pay Review this year. Yours sincerely, Andy Kerr Update 5th July BT Ballot Cancelled The Communication Workers Union today (Monday) is disappointed to have to cancel the notice for the industrial action ballot in BT. The ballot has been cancelled following legal advice which clearly outlined that under the notoriously restrictive trade union laws in the UK certain technical breaches would potentially invalidate the ballot. CWU has today received an offer from BT to meet for further negotiations and the union will take up that offer whilst taking all necessary steps to allow a re-ballot as soon as practically possible if negotiations are unsuccessful. Andy Kerr, CWU deputy general secretary, said: “We’re bitterly disappointed that this ballot has had to be cancelled. It’s devastating for our members and for trade union rights in the UK and of course it doesn’t help to resolve the outstanding issues over pay which we have with BT. “The legal technicalities on which this ballot has been cancelled again raise questions over the right to strike and the extremely restrictive trade union laws that exist in the UK. The law, in our view, appears to be outdated when it comes to the provision of information. “We will take all necessary steps to allow us to re-ballot our members as soon as is practically possible. In the meantime we will also be taking up an offer from BT for a meeting to see if there is a way to resolve this dispute without the need for industrial action.” CWU has received a series of letters from BT over the past few weeks which effectively amount to a legal challenge. On taking legal advice regarding the questions put to the union by BT the decision to cancel the ballot was taken on Monday 5th July. Update 1st July BT PAY 2010 - A Message from Your Branch Officers By the time you receive this letter you may have already voted in the BT pay ballot. If you haven’t yet voted, it is absolutely crucial that you complete your ballot paper and return it to arrive no later than the 5th July 2010. We understand the gravity of what we are asking you to do but we strongly recommend that you VOTE YES. There are a number of reasons why we believe this is the only way to get BT to enter meaningful negotiations in order to resolve the impasse between us. We must deliver a huge turnout in the ballot and an overwhelming vote in favour of strike action.
We also want to put the record straight with regard to the CWU’s willingness to negotiate. Quite simply, Are we willing to negotiate and find a way through this situation? The answer is YES! Andy Kerr (Deputy General Secretary) spoke to the press (Friday 18th June 2010) and made it clear the CWU is willing to negotiate on our 5% claim, which has always been the union’s position. The CWU remains ready to talk to BT with a view to reaching a settlement, but this has to be on the basis that BT is prepared to make a significant improvement on the 2% offer for 2010 to one that reflects the rise in the cost of living and properly recognises the contribution of CWU members to BT’s success. Are BT willing to negotiate a significant improvement on the 2% for 2010? The answer is, NO! The CWU negotiating team met with BT on the 9th June, for the final time, for over 5 hours in order to find a way forward. The BT negotiating team left the room for 2 hours and 20 minutes to seek authority to negotiate with the CWU. When they returned they informed us that they could not move on any element of the ‘final offer’. It is now clear, regardless of public protestations by Alex Wilson that they are willing to talk, that the only way to resolve this issue is by VOTING YES in the ballot for strike action. YOUR BRANCH AND REGIONAL OFFICERS FULLY SUPPORT THE EXECUTIVE’S CALL FOR A YES VOTE. SUPPORT YOURSELVES, SUPPORT THE UNION, VOTE YES. Update 25thJune Every Vote Counts! YOU WILL HAVE BY NOW RECEIVED YOUR BALLOT PAPER. IF YOU HAVE VOTED YES AND RETURNED THE BALLOT PAPER THEN THANK YOU. IF YOU HAVE RECEIVED IT BUT HAVE YET TO VOTE YES THEN PLEASE DO IT TODAY. EVERY YES VOTE COUNTS: IT COUNTS TOWARDS RECEIVING A FAIR PAY AWARD IN LINE WITH THE DIRECTORS 5% or above IT COUNTS TOWARDS PROTECTING YOUR PENSIONS IT COUNTS TOWARDS SENDING A SIGNAL TO BT THAT YOU’RE NOT ACCEPTING IT IT COUNTS TOWARDS YOUR VOICE BEING HEARD. Don’t forget BT made more than 1 billion profit in 09/10 WITHOUT A YES VOTE THE BUSINESS WILL BE GIVEN THE GREEN LIGHT TO CONTINUE WITH THEIR CHANGES WITHOUT A FAIR REWARD TO YOU VOTE YES FOR YOU AND YOUR FAMILIES FUTURE Download document in Word format here New Pay FAQ Issued As the BT Pay ballot continues, nationally, the CWU has issued further and updated FAQs on the reasons for the dispute and need for a yes vote in the BT Pay 2010 ballot. You can download the Word document here Update 18thJune On the day that CWU members working for BT are being sent out their ballot papers to vote on industrial action, the North West regional Committee has issued some basic truths with regard to the dispute. Download BT Pay 2010 FAQs (PDF format) here Update 10th June
Dear Colleagues The CWU met with BT yesterday to seek improvement on the company’s revised pay offer, but talks broke down after BT made clear they were not prepared to move despite our willingness to negotiate. The 3 per cent proposed pay rise from January 2011 was rejected on the basis that we do not know what inflation will be at that time, and it could represent a further pay cut for members. The CWU made clear we are open to a two year pay deal, but that the award for the second year would have to be an inflation plus formula to maintain the value of your pay in real terms. The additional one-off payments proposed by BT are not consolidated and not pensionable, and this affects the value of your pay and pension in the long term. Performance related pay will never offer enough certainty for those on middle and low incomes, who rely on inflation linked pay rises to continue to be able to afford essential goods and services. BT is being disingenuous in referring to the salary progression review in the context of this year’s annual pay review. Incremental pay is a contractual right and has never formed a part of the annual pay settlement. BT argue that the CWU has accepted lower pay deals in other companies, but this is because the situation has been very different in those companies. For example, we accepted a 2 per cent pay rise in Virgin Media, but its latest results show a £160.4m loss compared with BT’s annual profit of over £1bn. The CWU is not willing to accept any proposal that puts a timescale on the avoidance of compulsory redundancy. BT say their proposal for no compulsory redundancies until the end of 2011 will offer their employees a level of certainty, but we believe it will only make our members more concerned about their future in the company after 2011. The CWU has made clear that we will work constructively with BT to avoid compulsory redundancies on an ongoing basis as we have done in the past. We have also made We have recently undertaken discussions with BT on bringing jobs back to the UK which the company has indicated they wish to do in order to improve customer service levels. An agreement has been reached which is subject to a ballot of CWU members, but it is not without sacrifices made on the part of members with regards to attendance patterns. The CWU has indicated we are willing to discuss with BT the return of more jobs from off-shore operations. Given BT’s refusal to improve on its revised offer, we now have no alternative than to ballot for industrial action and we have served formal notice to the company today of our intention to ballot. Please attend one of the CWU meetings being held over the next week in your area where you can give your feedback, ask questions and find out more about what the ballot and industrial action will involve. Details of the meetings are available from your local CWU branch. Please also continue to check the CWU website and your CWU email address for updates. Requests for username and password details\reminders should be directed to cwumail@cwumail.org It is essential that we win this ballot with a big turnout and a big majority to demonstrate to BT the strength of feeling amongst their employees on pay this year. Please vote in the forthcoming ballot, and please vote YES for industrial action as recommended by your CWU Executive. Yours sincerely,
Update 7th June You’ve delivered more, you’re worth more!
Speaker after speaker rose to support the motion and lambast BT’s contempt for its workforce whose commitment and pragmatism have been central to BT’s financial recovery. The final offer of 2% is an insult to members and would mean a real terms cut in your pay. Chief Executive Ian Livingston received an annual bonus of over £1.2m this year for hitting financial targets that you have been instrumental in achieving. One of these targets is free cash flow which was £1.9bn at year end - nearly double the £1bn that BT was forecasting. If senior executives can be rewarded generously for BT’s excellent annual results, then so can CWU members. * Ian Livingston CEO, basic £850k plus annual bonus of £1,206k, total up by 79% on 2009 Your Executive strongly recommends you vote YES for industrial action. Keep a lookout for further updates from the union at your CWU email address. Support the campaign and debate the issues by joining the BT Pay Campaign group on Facebook. Contact your local branch, or visit the campaign website for more information: You’ve delivered more, you’re worth more
Demand a fair share in BT’s success The CWU’s pay claim is for 5% on pay and allowances. The CWU has rejected the offer. BT can afford more and you’re worth more for the part you’ve played in BT’s financial recovery. BT’s performance and ability to pay
Your contribution
Cost of living
These are just some of the essentials that have risen in the year to March 2010:
To get away from it all you’ll need to factor in the 10.6% hike in travel and leisure costs. The Economy and Other Settlements
Impact on Pensions
Don’t let BT suppress your pay for the benefit of shareholders 1 IDS (Income Data Services) Pay Report 1046, March 2010 Industrial Action Required
The Union’s Telecom Executive has today rejected this as wholly inadequate. The Executive has agreed that the union has no alternative than to issue a ballot for industrial action. The Executive unanimously rejected the offer because it fails to reflect your contribution to BT’s success and because an improved offer is affordable as shown by the company’s third quarter accounts, which include:
The 2% offer represents a 1.7% cut in your pay in real terms at a time when headline inflation is running at 3.7%, and the Executive agreed this is unacceptable. The CWU does not believe that non-consolidated, non-pensionable ‘lump sum’ payments are sufficient in rewarding you for your part in delivering BT’s profits. These payments will not make a permanent improvement to your base pay, pension, overtime or allowances. Increases in your cost of living on the other hand are permanent. Last year’s pay award did not flow through to pensions and a below inflation award this year will reduce the value of your pension in real terms and forever. That’s unacceptable, especially after the changes BT Pension Scheme members accepted to sustain the future of the pension scheme which resulted in changes to future benefit entitlements.
BT has had the audacity to try and spin October salary reviews into a pay increase. Incremental pay progression is a contractual entitlement which has always been separate from the annual pay review and reflects an individual’s development within a role rather than increases in the cost of living. All the indications are that BT is in a good position to grow revenues over the coming year. The UK has now emerged from recession and the Bank of England is predicting positive growth of around 1.3% for 2010. Given the importance of telecommunications to UK industry, consumers and the wider economy, BT can expect to be one of the organisations leading growth out of recession. BT argue that inflation is forecast to fall back towards the end of 2010, but financial experts still expect the headline rate of inflation to remain relatively high at 3.2% for the year end, with an overall figure of 3.6% for the calendar year. The CWU has traditionally benchmarked BT pay settlements against the March inflation figure (Retail Price Index) published in April and we have no intention of abandoning this principle. Average forecasts for March are currently running at 4.0%(3). The cost of essentials like food, fuel and public transport which you and your family rely on have risen significantly, and we are well aware of the extra strain this puts on your finances. Given BT’s strong performance and the sacrifices you have made to deliver that performance, BT is in a good position to increase your pay in real terms now. If BT is to offer the best quality of service and outperform the competition at every level, it needs to motivate and retain its workforce through a fair and appropriate level of reward. Industrial action is always a last resort for the union and not something we enter into lightly. Regular bulletins will be sent to members to keep you updated. |
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Andy Kerr, CWU deputy general secretary, said: 
BT is now undermining your pension benefits through its approach to pay regardless of your scheme. BT continues to pay huge sums into the pension pots of all senior executives, including an extra £172k(2) for Hanif Lalani who had overall responsibility for the company’s finances at the time of BT’s financial difficulties last year.