Out of touch

1 July 2010 By Una Galani Follow @ugalani

Workers want a bigger slice of the telco s recovery. Yet at a time of pay freezes elsewhere, demands for a 5 pct pay rise against BT s offer of 2 pct plus benefits look punchy. BT s revenues remain in decline and its pension deficit huge. A strike may not even be so harmful.

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Context News

British telecoms provider BT could suffer its first national strike action in two decades over a pay dispute with its workers.

The Communication Workers Union, which represents around 55,000 BT employees or roughly half the telecom operator's permanent staff, is holding a ballot to decide whether to proceed with industrial action.

The CWU is demanding a 5 percent pay increase in 2010, against BT's offer of a 2 percent increase for the year. The increase is part of a broader twoyear pay deal which includes an additional 3 percent pay rise for workers in 2011, a bonus payment of 250 pounds per employee in 2010 and 2011 and a guarantee against compulsory redundancies until the end of 2011.

If BT does not improve its 2 percent oneyear offer by noon on July 4, the CWU will proceed with the ballot and announce the result on July 5.

Context News

British telecoms provider BT could suffer its first national strike action in two decades over a pay dispute with its workers.

If BT does not improve its 2 percent oneyear offer by noon on July 4, the CWU will proceed with the ballot and announce the result on July 5.

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