BT Pay 2013

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CWU Totally Rejects BT Pay Offer

5 April 2013

At a meeting on 4 April 2013, the T&FS Executive’s BT Committee received a report from the BT Pay Team and considered an open offer from BT regarding the CWU Pay Review 2013.

BT Pay 2013

The Offer from BT

BT has proposed the following offer:

  • A fully consolidated base pay increase of 2.25% for all Team Member grades.
  • Flowing through to all those allowances automatically uplifted in line with the pay review.
  • In addition, a flat rate payment for all Team Members grades, as a non-consolidated lump sum payment, linked to the company’s performance in 2013/4. This will give Team Members the opportunity to share more in the success of the business. The suggested scheme design is as follows (details to be discussed):
    1. A flat rate one-off non-consolidated payment will be made in accordance with the BT Group/Openreach financial performance each year. A payment of £100, payable in June 2013, will be guaranteed in year one.
    2. Payment will not be made to anyone who has incurred a formal discipline, sick absence or performance warning, which is current at the year end.

Offer Represents Cut in Real Terms

With RPI inflation at 3.2% and forecast to stay above 3.0% until 2015, the CWU’s Executive has resoundingly rejected the offer on the basis that it represents a real terms cut in pay, it falls below your expectations, and it does not adequately reflect your contribution to BT’s success.

The £100 payment is a particular insult to the hard work and commitment of Team Members, and the overall offer comes nowhere near meeting the union’s claim of an inflation plus award with a consolidated flat rate element. In addition, the point stating that there would be a restriction on who would receive the £100 has extremely angered the negotiating team as an example of Performance Related Pay and no agreement will be given to this by the CWU.

The CWU has made it clear that faced with the soaring cost of essentials, our members want to share in the company’s success in a secure and consolidated way. A new cost of living index launched this year by leading money broker Tullett Prebon plc, shows that the cost of non-discretionary purchases such as food, council tax, water and energy has soared by more than 33% since 2007, compared with a 17.5% increase in RPI over the same period. The index lays bare the pressure on household budgets, arguing that the squeeze on consumption has been a major factor in stalling growth in the British economy.

We Think You Deserve More!

We have communicated to BT the messages we are hearing loud and clear from members that you feel undervalued, that you are working harder than ever, and that your costs have risen dramatically in recent years.

BT negotiators argue that pay awards are running below inflation and there is ‘no compelling reason for BT to buck that trend’. However with BT’s profits and cash flow up and median pay settlements at 3.0% in the three months to January*, we think you deserve more.

A further pay meeting with BT is planned for next week followed by a meeting of all CWU Branches with BT members.

*Source: Labour Research Department