BT thwarts strike action by reaching agreement with union
BT has reached a 39-month agreement with the Communication Workers Union in an effort to avoid industrial action.
UK telecommunications firm BT settled an ongoing dispute with its employees after establishing a pay scheme with the industry union. For months, the two sides have been at a stalemate in talks, but have finally come to an agreement that will run until March 2013. The agreement will provide BT workers with stability in their wages for several years, BT said during a statement.
The contract will cover more than 50,000 of the firm’s employees, which includes call centre staff and engineers. These staff members will now enjoy pay raises that can be attributed towards pension on a three per cent annual rise retroactive from April 2010 until March 2013. The union has also demanded that the firm give a five per cent rise from 2010 to 2011.
According to BT chief executive Ian Livingston, the pay rise agreement with be excellent for employees, customers and shareholders. He also added that BT would benefit from a long-term effect, while employees will be better equipped to manage the financial downturn. Over 50,000 staff threatened walkouts last month, but the strikes never happened due to procedural problems in the balloting. BT has made this agreement in an attempt to thwart further industrial action.