BT prepares for strike ballot

Telecoms giant BT is preparing itself for its first period of industrial unrest in 25 years as the Communications Workers Union readies plans for a strike ballot over pay.
 

According to an internal email seen by the BBC, managers are being asked to provide details of their broader skills, even if rusty, by Wednesday 26 May for use in the event of disruption.
 
A company spokesperson confirmed that the plans were in place, saying: “While we hope to agree a pay deal, each line of the business will be making preparations for the possibility of strike action.”
 
It had asked managers to declare their skills in the event of a showdown because “like many other companies, we have a difficult year ahead of us with the global financial climate and increasing competition”, the spokesperson added.
 
The news emerged as chief executive Ian Livingston was set to receive an annual bonus in excess of £1 million, a figure that is three times larger than last year’s payout. The firm announced earlier this month that it had generated profits of more than £1 billion. It intends to pay shareholders a 6% dividend.
 
But the union is unhappy that the telco has cut 35,000 jobs over the last two years, introduced a staff pay freeze and implemented major pension changes at the same time.
 
Andy Kerr, the CWU’s deputy general secretary, said: “This is about fairness. BT staff have borne the brunt of cost savings and delivered the huge profits being enjoyed by the company this year. We have no problem with senior executives receiving bonuses, but we want all staff to share the success of the company.”
 
Although the union would prefer a negotiated settlement, BT appeared to “have closed the door on this by making an offer that results in a pay cut in real terms and which will have a detrimental impact on all future pension payments of current Newgrid grades”, he added.
 
The CWU, which started its annual meeting in Bournemouth today, rejected a final offer of a 2% pay rise by BT recently, holding out instead for a 5% increase. It is the largest union within BT and counts about 50,000 of the firm’s 112,000 staff as its members.
 
The organisation is holding a telecoms conference this morning to debate a motion calling for a strike ballot over the pay issue. If BT fails to make a revised offer by midday on Friday 4 June, the union said it intends to serve formal notice of its intention to ballot members for industrial action.
 
Members of the BT’s second largest union Prospect recently voted in favour of the 2% offer and a package that includes performance-related pay, to which the CWU is also opposed.