BT reaches pay deal with union

Telecoms giant BT has avoided strike action after reaching an agreement on pay with the Communication Workers Union (CWU).

Workers were threatening strike action after senior executives were awarded huge bonuses which angered staff.

However, a new deal, which the union has described as “fantastic” for its members resulted in a 2.3% rise in BT’s share price this morning.

BT commented: “Having failed to reach agreement on a one or two-year deal, the two sides have instead agreed on an unprecedented thirty-nine-month deal that will take both sides through until March 2013.

“This deal will provide BT with wage stability for several years. The agreement will see team members receive pensionable pay rises worth 3pc each financial year from April 2010 to March 2013, with the rise being backdated to January.”

CWU deputy general secretary Andy Kerr said: “This is a fantastic deal for our members, providing a fair rise in their basic pay this year and for the following two years.

“This deal is among the highest pay settlements in the country this year, recognising the contribution of staff and BT’s success over the last year.”

The CWU, which represents more than 50,000 BT workers including engineers and call centre workers, will now hold a consultative ballot, advising members to approve the deal.

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