Update on BT Pay

[POSTMAN]

Dear Colleague

As explained in the bulletin I sent you today, the CWU’s annual conference unanimously carried a motion on Wednesday to ballot for industrial action if BT do not revise their final pay offer by 4th June.

BT describe their offer as fair and reasonable, but the message from CWU Conference delegates this week was clear that 2% on your pay is not enough for the part you’ve played in delivering BT's excellent annual results. Your hard work and pragmatism towards BT's cost efficiency program have helped the company cut costs by £1.7bn, deliver pre-tax profits of over £1bn, and generate free cash flow of £1.9bn - nearly double the £1bn they forecast at the start of the year.

Senior executives have received very generous awards for hitting business targets that you have been instrumental in delivering. It is right that you should also be offered a fair share in this success.

Sir Michael Rake, BT Chairman, received £670k this year for a 2/3 day week, up from £630k in 2009, which is an increase of 6.3%.

Ian Livingston CEO received a basic salary of £850k this year and his bonus tripled to over £1.2m. From 1st June this year he is set to see a 6% rise in his basic pay to £900k. Ian Livingston says he has pledged to take just a 2% pay rise and give the rest to charity. But we have yet to clarify whether he is simply making a donation out of his pay rise, in which case the 6% will still go on his basic pay and would flow through to his pension and to next year's salary.

The CWU's claim of 5% is reasonable and realistic. It is not significantly above the rise in the cost of living, which was 4.4% in the year to March. A 5% increase on the pay of CWU represented grades would cost BT around £68.5m, or 3.6% of free cash flow.

The fact that a portion of the pay award is not pensionable will impact on the long term value of your pension, whether you are in the BTPS or the BTRSS.

BT are factoring in the October salary progression review as justification for their low pay offer, but this is a contractual right and reflects an individual's progression within a role. It is NOT part of the annual pay review, which is about keeping your pay in line with the rise in the cost of living and rewarding all employees for your contribution to the business.

BT have talked about the lowest paid staff receiving 5.4% in pay and bonuses, but this applies to only seven employees, it is dependent on the second non-consolidated payment being made, and it still only means 2% on base pay. Looking at pay and bonuses together also emphasises the huge disparity between staff and executive pay, with Ian Livingston's combined pay and bonus package going up by 79% and Gavin Patterson's up 62.3%. That does not include the huge sums in shares they will also receive.

The CWU has offered to meet with BT at any time to resolve the current situation, but we have made it clear that this would have to be on the basis that BT are willing to revise their final pay offer.

We will keep members up to date in the coming days via the CWU campaign page and your CWU email address. Please also join the BT Pay Campaign page on Facebook and get involved in the debate.

If you have any comments or questions please send them to BTPay2010@cwu.org

We have also created a Q&A to help clarify some of the important issues.

Yours sincerely

Andy Kerr

Deputy General Secretary (T&FS)

[Dogs of War]

This is Royal Mail Chat not BT chat I don't give to sh***s about there pay.

[TrueBlueTerrier]

This is Royal Mail Chat not BT chat I don't give to sh***s about there pay.

Then don't comment on it and as far as I know Postman controls Editorial Policy not you

I for one as a CWU member like to be kept aware of what's going on in other sections even if it does not affect me personally. Its called solidarity.

[POSTMAN]

This is Royal Mail Chat not BT chat I don't give to sh***s about there pay.

Ahhh come on dawg where's the...

[fishtank]

I for one as a CWU member like to be kept aware of what's going on in other sections even if it does not affect me personally. Its called solidarity.

I just like being nosey.

[Dogs of War]

Well its a open forum for the public and Royal Mail group workers not BT workers, there pay rise is not going to put food on my table.

[TrueBlueTerrier]

Well its a open forum for the public and Royal Mail group workers not BT workers, there pay rise is not going to put food on my table.

Well if your not interested and "it won't put food on your table" why are you commenting on it.

Surely YOU ignoring anything that does not interest you would be a better than posting what you did. Or perhaps you want The Admin/Moderation to run eveything by you in the first place.

[pinstripe]

Well its a open forum for the public and Royal Mail group workers not BT workers, there pay rise is not going to put food on my table.

No it isn't, but it is being fought for by the same union that fought for and won us 2.5%, with moe strings than an orchestra. CWU are willing to play 'hard ball' with BT, but lay down to RM!

[POSTMAN]

Well i'm not going to bother any more,i also received in my alerts for the cwu another union the Cunnilingus Workers Union,they are haveing a stickie patch at the moment and i also had posters to put up pointing out how hard their work is.

But i guess they will have to go it alone.

[Dogs of War]

True blue you seem to be taking a thick. I don't give a f**k about BT and there pay its a Royal Mail forum not BT forum. I'm sure BT workers don't give a f**k about are pay cut this year.

[TrueBlueTerrier]

True blue you seem to be taking a thick. I don't give a f**k about BT and there pay its a Royal Mail forum not BT forum. I'm sure BT workers don't give a f**k about are pay cut this year.

.Not sure what you mean by taking a thick

But I just cant understand why you posted what you did if you were not interested, I just can't make any sense unless you just wanted to piss people off.

[DGP1]

Well i'm not going to bother any more,i also received in my alerts for the cwu another union the Cunnilingus Workers Union,they are haveing a stickie patch at the moment and i also had posters to put up pointing out how hard their work is.

But i guess they will have to go it alone.

If only I could get my tounge around that