BT Proposes New Pay Offer to CWU to Stop Future UK Strikes
BT has this afternoon announced plans for a new “UK Cost of Living Pay Rise” to all but the highest paid staff, which it hopes will settle their pay dispute with the Communications Workers Union (CWU) – representing up to 38,000 employees – and thus avert any further strike action over Christmas.
The original dispute related to BT’s pledge to award workers a £1,500 consolidated pay increase to their annual salaries earlier this year (up from an original offer of £1,200). The operator said this would be the “largest [pay rise] … in over 20-years” for 58,000 of their UK frontline and Team Member colleagues – representing an increase of up to 8% for some colleagues and more than 3% for even the highest paid frontline workers.
However, the Deputy General Secretary of the CWU, Andy Kerr, who had called for a pay rise of 10% to recognise the “contribution our members have made to the business”, rejected the previous offer and warned that, given the surging level of inflation, it would have represented a “relative pay cut“. Kerr also noted that BT’s CEO had, at the same time as all this was occurring, awarded himself a 32% pay increase.
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But signs of a change began to emerge earlier this month after BT and the CWU appeared to re-enter proper negotiations (here) and, as a result of that, the operator has today tabled the following offer with agreement from the CWU.
Details of the Cost of Living Pay Rise are:
➤ £1,500 pay rise for all UK colleagues who currently earn £50,000 or less from 1 Jan 2023
➤ Consolidated salary increase, not one-off payment
➤ Covers 100% of frontline staff (and others at ‘Team Member’ grade), and 51% of managers in the UK. In total, 85% of UK-based BT Group colleagues
➤ Highly competitive pay award when combined with the increase made in April, bringing the total percentage pay rise for the lowest paid to over 15% since this time last year
➤ Includes Openreach
According to the CWU, the total package includes pay permanently increasing by £3000 from 1st April 2022, with a further review from 1st September 2023 to allow for further negotiations to resolve pay, grading and structuring issues. This will represent a pay rise ranging from 6 to 16% for workers of different grades.
The proposal is now being put to a vote of the CWU’s BT membership, with the union’s executive urging members to accept the deal.
Philip Jansen, BT Group Chief Executive, said:
“This award is based on the principles we have followed throughout this difficult period. It gets help to as many of our colleagues as possible; favours our lower paid colleagues; and gives people the security of a built-in, pensionable increase to their pay.
Crucially, it has been worked on in conjunction with the CWU. As I’ve said throughout, whatever our differences, our unions are vital partners. We will now build on this collaboration: We have agreed with both our union partners that we will all lean into the opportunities and challenges the future will bring, specifically our transformation plans and the delivery of the £3bn cost savings by the end of FY25. Ultimately, we all want BT Group to be successful so that we can do the best by our people and customers for years to come.”
Andy Kerr, CWU Deputy General Secretary, said:
“I wish to pay tribute to our members for coming out to strike in such serious numbers.
Their determination has moved BT into a position where they could no longer ignore the case for a consolidated pay rise – without such unity, the company would have offered a cost-of-living bung at the very best.
Our members have every reason to be proud, and I hope that they have their say in the forthcoming electronic consultative ballot.”
The fact that this offer is being supported by the CWU should be enough to put an end to the dispute. We expect that the deal will be accepted, which will in turn give BT – in particular those working in its legally separate network access division (Openreach) – some much-needed stability over the festive season.
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Christmas is often a strain for broadband operators due to holidays and bad weather, thus the risk of a much longer and deeper national strike occurring over that period will be something that BT will have wanted to avoid. This deal may just be big enough to deliver that outcome, at least until BT’s next pay review starts, which is in September 2023. Oh, dear.
Mark is a professional technology writer, IT consultant and computer engineer from Dorset (England), he also founded ISPreview in 1999 and enjoys analysing the latest telecoms and broadband developments. Find me on X (Twitter), Mastodon, Facebook, BlueSky, Threads.net and Linkedin.
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Sometimes collective bargaining, right up to industrial action, works. This alongside other agreements set a standard most should be receiving.
But in this instance it was blackmail… just had the external works completed by Openreach for my FTTP line (the externals was supposed to be done in October).
The 2 engineers (in their late 40’s, early 50’s) apologised for the delay saying the CWU was making unrealistic demands, encouraging strikes and in turn causing a massive backlog.
Due to the due dates not being met, OR are having to pay out compensation (my BT account will be credited £130ish) so scale that out across the delayed orders.
It’s kinda the point of industrial action for the employer to feel pain?
Sorry your FTTP was delayed and all that.
Thank you but not needed.
I was pointing out that it wasn’t up to industrial action, it included it and it was probably the fines/compensation building up that played a part of OR/BT upping their offer.
They were between a rock and a hard place.
Good deal done by the CWU the result of solid backing of the union by staff.
Am I misreading this? Original offer was £1200, then upped to £1500. This was rejected, but they have now accepted £1500? Not sure how they’ve improved from the original offer!
This was on top so £3000
One off payment vs salary increase. Big difference, means you get a salary drop next year. Also seems to apply to more staff and combine with April.
These are salary increases, not one off payments.
Hope they keep striking. I hate commie unions but BT needs to be brought down
Really how ridiculous
BT and Openreach well done for the UK on hold I might get upgraded. It’s half done
BT and Openreach well done for putting the UK on hold I might get area upgraded. It’s half done
What are you talking about? Had no effect on FTTP rollouts which are done by contractors.
It just shows you what you my area was is delayed
It just shows you what you know my area has been delayed
So what if your area was delayed? That has nothing to do with a few days of strikes. FTTP rollouts are done by contractors, not Openreach staff as I’ve already stated or can you not read very well?
You don’t really get it. I keep in contact with Openreach through Twitter Facebook and email telling me that it’s been delayed due to the current strike situation your telling me it has nothing to do with it your joking why your defending Openreach. I the reason thats what they’ve said.
Icaras. FTTP rollouts are not only done by contractors
It’s a decent offer. But frustrations are high elsewhere because of little to no payrises and and mandates to return to offices (slightly better than BT’s 3 day ultimatum).
But company needs to save cash if it wants to keep things going and afford to keep its employees. A few interesting projects canned unfortunately. Though hopefully kickstarted again in 25.
Now look out for the 10/15% headcount challenge that will pay for this!
Better Buildings the great HR stick to drive experienced staff into redundancy or retirement. Expect more “centres of excellence” in the Indian Subcontinent , an oxymoron if ever there was one.
Don’t be misled. All that’s happened is BT have brought forward next year’s pay rise from April to January. So it’s 4.8% last year and the same next year. And the Union caved as they’re too busy with the posties.
Nonsense.
This is a pay round that put £125 a month into peoples pockets in April. Has forced another £125 a month into peoples pockets nine months later thanks to solid support of the union. AND another pay rise in another nine months in Sept. AND another pay rise nine months later in March 24. You’d be hard pushed to find any other firm with anything close.
Nobody wins in strikes but this is as close as it gets to a great victory.
It’s only a victory for Phil, the email states that they’ll look at the pay again in September but they will take into account we’ve already had a pay rise at the beginning of the year. So he’ll once again say there’s no money and he’ll look again in April ’24.
£1500 after tax and NI is £1020. Which is about what it cost me in striking. We striked to get a proper increase not get our April increase 3 months early.
I’ve seen lots of firms paying more then 4.8%
Also what did the union do to save all the workers being made redundant at the end of the year? The workers that are currently having to train their replacements on apprentice wages. Which they can do as they’re using the “building closures” to get round the redundancy rules.
Yeah bit of a kick in the teeth, April pay rise next year should of been £2000 minimum due to National Minimum Wage going up 92p an hour then. So basically they they are bringing that forward 3 months but paying LESS than what it should of been and aren’t even going to discuss another pay rise until September. This is not a win, anyone who can add 1+1 can see this is a bad deal. When this is put to a vote I won’t be accepting it
I assume you’re in if the workers within our group who expects their arses wiped? You chose to strike and lose the money, so you don’t get any sympathy or reasoning for choosing to do that. Perform better and get your performance based pay rise, I assume you’ve not been there long since you’re not happy. Can’t expect them to pay for everything, go elsewhere.
8 days pay lost totalling about £1500 awarded £1500 in April 2022, now another £1500 from January not back dated next pay review September 2023 explain who won what please, no cost of living rise for 2022 apart from 3 months.
It was reported on the radio that BT had said “the rise was funded due to the government helping them pay their energy bill”
Do you have any idea what the energy cost might be it would have millions . The fact that the government provided some stability on energy prices for businesses will have enabled many companies to understand those cost and plan accordingly
£200m I believe.
just greed …..
Fair pay for a fair days work.
The problem with the Global labour market is that we do not pay the right people the money they deserve for their work. This has been the case since the early 1970’s (G20 Nations) This divation in pay has recently been massively accelerated meaning more and more of peoples wages do not keep pace with rising costs. This inturn causes what we are currently witnessing today massive discontent from across all segments of industry & society. The problem is inorder for wages to keep pace with inflation amist an environment of spiraling inflation means either increases in vaule of goods or service produced, increased aggragate demand and/or rises in wages. The latter then puts upward pressure on the very thing your trying to keep pace with, especially if you have global supply side problems. So, its a catch 22.. This is a symptom of a sick system with systemic problems all in part caused by the unwinding of years of (zero IR) cheap credit.
Well done to the unions for pushing for better pay and conditions for their members. There needs to be a rekoning when we redress these massive inequalities in our systems.
Nothing changes this is a classic BT gambit , £125 odd payrise pcm before tax and NI and won’t hit paypackets until next February .Next years pay negotiation would normally reach agreement in March anyway. Its the best we could get under the circumstance..The CWU are tied up with the Post Office strike and cant fight on two fronts particularly as BT staff are generally not that militant.
The BT staff benefiting from this most are those who chose not to join the CWU and those who chose not to strike yet enjoy the benefit of collective bargaining .
The CWU overplayed their hand and got caught short.
The appetite for continued strike action by the members wasn’t there and they knew it.
This just about saves face.
JP wasn’t for folding!!
It is being spun in the media that the extra 1500 is backdated to April!! Wrong, this doesn’t start till Jan! And negotiations fall 2023 cannot commence until September 2023. So basically it is the 2023 pay rise. To the person who is bleating on about we shouldn’t be compensated for striking! And the nonsense about five days pay for a fair days work, working harder and you will get bonuses! What a load of crock! PJ choice to give himself a 32% pay rise, snd massive dividends to the shareholders! But the part had one try for his own staff to be given a fair pay rise. His argument is that it is industry competitive! So all industries underpay and he follows suit! The type of mentality that stained society for years! The rich get richer and the poor get poorer. Keep the peasants in their place! And if they complain tell them that Locket to have a job
CEO dont choose there salaries that was voted on at AGM by shareholders, just an aside the only constant thing at BT is change and its been like that for the last 30 years constantly changing and evolving and it will continue to do so not sure why your surprised and i should know i was an 802 before it retired back end of last year
CEOs don’t choose to pay rises, but they certainly accept them. In doing so they put two fingers up at the staff, when they are getting a 32% pay rise equating to £3.5 million, And have the cheek to say they can’t afford the highest paid staff more than 3%. Then have the future brass balls to say anybody earning over 50 grand will not get a pay rise! Well JP is getting 75 times that and still gets a pay rise. I can’t see much evolving going on here, revolving maybe, the same old inequality that we just accept, but not evolving.
Interestingly, and this may be a touch conspirtacy theorist, this new deal sdeems to track with contracted/outsourced cuts.
For example, bonus threshold for non-sales staff has been increased. Sales staff still get double for FTTP sign ups. Tech Support and Connections bonus limits have increased from 67% average to %87. Which marks a loss of £150-250 per head loss.
So direct staff get a bump. Contracted staff however have yet again taken a hit and massive cut.