Britain’s largest telecoms union has rejected BT’s flat pay rise offer of £1,200, arguing that it would leave many employees worse off this year.
UK inflation is rising at its fastest pace in three decades as fuel, energy, food and other everyday costs increase. The Bank of England expects inflation to reach around eight percent over the spring, and it could rise further later in the year.
Many employers are responding to higher living costs and a tight labour market by raising pay more than they originally planned, aiming both to support staff and to retain employees during a period of record job vacancies.
The Communication Workers Union (CWU) says BT’s £1,200 proposal falls short of what members need.
“With inflation rising and household incomes squeezed, the offer of £1,200 amounts to a real-terms pay cut,” says Andy Kerr, Deputy General Secretary of Telecoms & Financial Services at the CWU. “BT need to listen to their workforce — their employees are their greatest asset. The company has a clear choice about whether to prioritise shareholders or workers.”
The CWU negotiating team says it has consulted members and has formally asked BT to grant a 10% pay rise.
The union adds that further talks with BT are scheduled in the coming days. If the company does not present a satisfactory offer, the CWU says it will prepare for a statutory industrial action ballot.
“BT need to hear your voices too — please tell them you are worth 10%,” the union urges members.
In response, a BT spokesperson released a statement explaining the company’s position:
“The backdrop to this year’s pay review is a highly unusual and challenging set of macroeconomic conditions. While our operational delivery over the past year has been strong, our financial performance has been weaker. We are emerging from a two-year global pandemic that created difficult trading conditions for our business and has contributed to a trend of declining revenue over the past five years.
We are proposing a consolidated pay increase of £1,200 for all Team Member and frontline colleagues across BT Group. This offer would be the largest aggregate pay increase for our Team Member and frontline colleagues in the last 14 years, representing a salary increase of between 2.7% and 5.64%.”
The recent controversy surrounding P&O job cuts has focused attention on how some employers treat staff. Companies that do not keep pace with inflation may face higher employee turnover and difficulty recruiting unless they offer significantly better pay and benefits.
(Image: Andy Kerr by CWU)
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