BT Pay 2012
No Movement From BT - CWU Keep Pressure
22 February 2012
CWU met with BT on 15 February 2012 when the company repeated its message that there is no intention to increase the 3% pay award for 2012. The CWU strongly emphasized that BTís third quarter results show the company can well afford to increase membersí pay.
It is clear from feedback we continue to receive from members that you are angry as you feel that BT have reneged on our agreement of seeking to mitigate the impact of inflation. Whilst your every day costs continue to rise, BTís costs have reduced by 6% or £691m over the last nine months as a result of cost efficiencies and lower regulatory charges.
- BTís share price has risen by nearly 50% since the time of the 2010 pay settlement.
- Pre-tax profits increased by 41% to £1,721m in the nine months to 31 December.
- BT expects to achieve its 2013 EBITDA (profit) target of above £6bn a year early and to deliver free cash flow of around £2.4bn this year.
It is too early to say discussions have broken down but the CWU is seriously concerned at the lack of progress. CWU negotiators are insisting that BT have a commitment to make us an offer and that if the current position persists then we are heading towards a dispute situation.