{"id":31568,"date":"2022-07-13T14:31:34","date_gmt":"2022-07-13T13:31:34","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=31568"},"modified":"2022-07-13T16:22:35","modified_gmt":"2022-07-13T15:22:35","slug":"38000-bt-and-openreach-staff-to-strike-as-last-minute-talks-attempt-fails","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2022\/07\/38000-bt-and-openreach-staff-to-strike-as-last-minute-talks-attempt-fails.html","title":{"rendered":"Up to 38k BT and Openreach Staff May Strike as Last Minute Talk Attempt Fails"},"content":{"rendered":"

The Communications Workers Union<\/a> (CWU) has today, after BT<\/a> rejected this week’s last minute talks proposal to reach a compromise agreement over pay, said they will formally serve notice on the UK telecoms and broadband ISP giant (inc. Openreach<\/a>) of their intention to launch the first national strike in 35 years.<\/p>\n

Just to recap. BT<\/a> and the CWU reached an agreement last year (here<\/a>), which saw the telecoms giant commit to implement a pay increase for team members (and management teams) in the UK during 2022. The deal would “depend on various factors including business performance, economic outlook and inflation<\/em>.” As most people know, inflation has since gone through the roof.<\/p>\n

BT recently announced that they planned to award workers a \u00a31,500 consolidated pay increase to their annual salaries (up from an original offer of \u00a31,200). The operator said this would be the “largest [pay rise] \u2026 in over 20-years<\/em>” 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.<\/p>\n

However, the Deputy General Secretary (Telecoms and Financial Services) of the CWU, Andy Kerr<\/strong>, who had previously called for a pay rise of 10% (for the c. 40,000 workers they represent) to recognise the “contribution our members have made to the business<\/em>“, promptly rejected BT\u2019s offer. Kerr warned that, given the surging level of inflation, the offer would have effectively represented a “relative pay cut<\/em>“.<\/p>\n

All of this was occurring at around the same time as BT’s CEO, Philip Jansen<\/strong>, opted – perhaps unwisely – to take a 32% increase in his overall remuneration package this year. In the end, the CWU balloted on strike action, which last week returned a vote in favour from staff at both BT and Openreach<\/a> (here<\/a>), while EE<\/a>’s workers fell short of the government’s ballot threshold by just 8 votes and will not be included.<\/p>\n

However, the CWU opted not to formally serve notice on BT of the strike action, which effectively gave the operator’s senior management one final opportunity to negotiate a settlement. Sadly, the clock for that just ran out, which has today resulted in the CWU saying they will now serve BT with formal notice of their intention to strike.<\/p>\n

CWU Statement<\/strong><\/p>\n

“BT Group CEO Philip Jansen has turned down our offer of talks to avoid the first national dispute since 1987.<\/p>\n

We will now prepare to serve notice for strike action.”<\/p><\/blockquote>\n

Just to be clear, BT has yet to receive the notice itself.<\/p>\n

The Impact<\/strong><\/span><\/h3>\n

BT says it has dedicated business continuity and resilience teams, which they claim will be able to keep any related disruption from the strike to a minimum. However, no commercial broadband and mobile operator can completely cover for strike action of this scale and magnitude, no matter what the PR folk may say.<\/p>\n

The impact from this strike is thus likely to be similar to the initial outbreak of COVID-19, before sophisticated home working systems were introduced. In short, the operator’s services will continue to function, but we’d expect essential account and network repair tasks to take priority. But trying to contact and get a resolution from BT’s support team may be a much harder and slower task than usual, for as long as the strike continues.<\/p>\n

As for Openreach, the biggest impact will no doubt be felt in terms of delays to new service provisions (installations), which typically affects hundreds of UK communication providers (ISPs etc.) – catching everything from consumer broadband services to high capacity Ethernet lines and Physical Infrastructure Access (PIA). Any planned but non-essential engineering work will also be postponed.<\/p>\n

Such delays can be very costly, although the network operator may not provide compensation for this as it would be deemed a matter “beyond our control<\/em>” (there\u2019s usually a catch in contracts about such things). Naturally, the length and breadth of this impact will depend upon the CWU’s strike plan, which we’ve yet to see.<\/p>\n

Despite the CWU serving notice, it’s worth highlighting that this is all about ratcheting up the pressure on BT ahead of the industrial action actually taking place. At the end of the day, there’s always scope for an 11th hour agreement, but time will tell.<\/p>\n

A strike will be a very costly affair for BT, but then the operator will no doubt be concerned about future economic hits – linked to the precedent of agreeing to such a pay increase. Not to mention the knock-on impact for the UK economy as the threat of a wage-price spiral grows (i.e. a vicious circle that could make inflation worse and keep it high for much longer).<\/p>\n

Consumers have already felt the impact from huge, often inflation busting, price rises in their broadband and phone services this year. But next year’s hikes are already shaping up to be eye watering.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Communications Workers Union (CWU) has today, after BT rejected this week’s last minute talks proposal to reach a compromise agreement over pay, said they will formally serve notice on the UK telecoms and broadband ISP giant (inc. 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