Mobile and broadband giant Virgin Media and O2 (VMO2) is introducing a series of measures to “bolster its support for employees during the cost-of-living crisis“, which among other things will include a new targeted support payment (£1,500 for many UK employees) alongside more flexible leave policies.
The changes, which make for an interesting contrast against BT Group’s current pay dispute with its biggest union (CWU), will see VMO2 hand employees – those earning £35,000 basic pay and under – a support allowance totalling £1,400 to assist with the cost-of-living (inflation is currently surging ahead of this). The first payment of £400 will be issued next month, followed by another £400 in January 2023, and then six payments of £100 a month until July 2023.
The operator has also enhanced its support for new parents, which includes giving 26 weeks’ paid Maternity or Adoption Leave, and 14 weeks’ paid Paternity Leave to any new parent. In addition, the company will also provide up to 10 days’ paid leave for those who have tragically experienced pregnancy loss.
Advertisement
On top of that, VMO2 will allow up to 5 days’ paid leave to help employees deal with emergencies at home or to help them support their family, and it will provide up to 10 days’ paid leave to support people who have experienced a loss of a loved one.
VMO2 will also become one of the first UK businesses to offer both paid carer’s leave and neonatal leave. As part of this, they’re offering 5 days of paid carer’s leave (this is flexible and can be taken as 10 half days to ensure employees can best support their loved ones) and up to 12 weeks’ paid neonatal leave to support parents whose babies are born prematurely or sick (i.e. they require neonatal care shortly after birth).
Philipp Wohland, Chief People Officer at VMO2, said:
“Virgin Media O2 is proud to be a leading UK employer and we’re stepping up for our people when they need us.
We’re supporting our employees most affected by the rise in the cost-of-living with a payment of £1,400 to help them through the difficult months ahead. Coupled with an earlier pay uplift and bonus this represents an overall above-inflation increase for many of our people.
Our new best-in-class leave policies will support all our employees – including LGBTQ+ families, and we’re proud to be one of the first UK businesses to offer both carer’s leave and neonatal leave, so that our people have the flexibility to be there for their loved ones when it counts.”
According to the announcement, all of Virgin Media O2’s employee groups are said to have supported the company’s £1,400 cost-of-living allowance, and in the CWU ballot its members voted by 85.7% in favour to accept the offer.
Am I missing something? Why would this £1500 largely be fine with the CWU but BT’s isn’t? I’m assuming this would suggest that the BT pay on average is much lower?
It can’t be about CEO bonuses or salary because VM’s is on *way* more than BT’s, no? (albeit less reported)
I may not be too clued up on these things but is it probably possible that VM02 just don’t need to answer to the CWU as they’re not involved in this process, or that the VM02 staff agreed to the 1500?
Again im not clued with these things so probably come off ignorant but in reality just out of touch
I may have misinterpreted, but these are one-time payments not any increase to base salaries.
Does inflation suddenly end after this, and the prices all reduce?
Exactly, why they can’t give them salary raise rather than playing good honest auntie.
Precisely. Even after a period of 10% inflation, it remains fiscal policy for the central bank to target 2% inflation, not deflation.
We are getting pay rise of £4000 per annum from January and £1400 one off to help with bills etc. I’m a field engineer at Virgin Media o2
I don’t think ISPreview reported on it, but Sky recently also did the same thing:
https://employeebenefits.co.uk/sky-gives-employees-1000-cost-of-living-payment/
The issue with Sky’s offer is that salaries are below market average for many roles in BB&T&M. People I know are greateful but do feel it could have gone further especially for those on salaries below £30,000. Ideally Sky would want its employees back into offices to increase occupancy.
Of course the lettuce guacamole bacon tomato plus minus divided by sign had to be specifically pointed out for their ESG statements
Please take your ignorant comments and attitude to another forum, it has zero relevance here
What exactly was ignorant about my comment? Who are you to gatekeep a free internet comment section? Maybe to you it has zero relevance but not for the equity investors
Agree with Chris. Grow up.
^ “anyone who disagrees with my world view has an inferior mental age”
Grow a spine. There is no need to single out groups other than to virtue signal identity politics
Yeah I’m with Pablo here. The last 20 years of ‘progress’ in tech company hiring can bigger off.
It could be that this is in addition to a pay deal. This is just a cost of living bonus. The BT thing is their pay deal. You also have to look at all of the extra benefits being offered.
@ Mark Jackson. More Strikes from Openreach: https://www.cwu.org/btopenreachstrikeinfo
The company issued an average 12% payrise that takes affect in January 2023 a 3% rise in the April passed and this cost of living payment on top. It’s a pretty sound deal.
it probably only benefits the ones who work directly for VM which is a small amount since they outsource all of their call centres.
VM has outsourced call centres in India and Philippines but employs staff in its UK call centres in Teesside, Sheffield, Manchester and Birmingham.
@Roger I think they outsourced those to a group named “Sitel” as they did in Scotland
@Roger gazettelive/news/teesside-news/virgin-media-makes-outsourcing-announcement-22592830.amp
It’s co uk link
No they didn’t. 12%?! There was a 3% this year and 2% next year. They’ve bumped the entry level salaries as they are hemorrhaging staff to altnets. For experienced time served engineers and technicians this ‘pay deal’ does nothing to encourage performance or loyalty.
I mean a good chunk of their estate is franchise stores so their going to save a fair amount considering those employees won’t benefit
What stores? All 53 retail outlets which were shut in March 2020 due to Covid-19 restrictions stayed shut.
There’s quite a few, you only have to look online to find them
Aha, if it’s online it’s true. Hmmm.
I mean it says virgin media O2 if you can read correctly and I’m certainly sure there is O2 stores still on the high street, not all info on the internet is correct but it’s defo correct that O2 stores still exist
The deal followed a pay rise and reopening up of 2023 talks (where they had planned another imposition). Perhaps this would be the way out for BT to solve their dispute and also save face Mr Jansen?
From CWU
Thanking members for their staunch support of the CWU’s negotiating stance on pay throughout the difficult negotiations that followed members’ 95.7% consultative ballot rejection of the unagreed below-inflation two year package that VMO2 unilaterally imposed in March, Tracey continued “There’s no doubt the overall cash settlement we’ve secured for lower paid members this year has provided a lifeline for those worst affected by the cost of living crisis.
“VMO2 deserves credit for listening to the financial concerns of its workforce, articulated through our representations, and applying the improved offer beyond our recognised bargaining unit.”
Reflecting on the fact that, from the very outset, it was the CWU alone that championed the need for a rethink on this year’s pay settlement, Tracey concludes: “2023 becomes the starting point for genuine talks on next year’s pay round and there could hardly be a clearer demonstration of the benefits of the collective voice provided by a recognised trade union throughout these discussions.”