BT strike ballot plans announced

Andy Kerr, CWU: "There's a real anger out there"

Related Stories

The union representing BT workers has announced plans to ballot its members on possible industrial action.

The Communication Workers Union (CWU) will ask members to vote on strike action if BT fails to offer an improved pay deal before 4 June.

The news came shortly after BT confirmed that chief executive Ian Livingston would be paid a £1.2m bonus for his work last year.

The CWU, which represents 55,000 BT staff, has rejected a 2% pay offer.

It wants a rise of 5% which it says is in line with inflation.

The motion calling for a strike ballot was agreed at the union's annual conference.

BT has been asking managers to provide details of their broader skills in case strikes go ahead.

But the BBC's business correspondent John Moylan said the threat of industrial action is often used as a bargaining tool in pay negotiations.

Hitting targets

The CWU said the dispute was about fairness.

"I don't have any problem with Mr Livingston or others getting the bonuses they get for reaching their targets," Andy Kerr, deputy general secretary of the CWU, told the BBC.

Start Quote

While we hope to agree a pay deal, each line of the business will be making preparations for the possibility of strike action”

End Quote BT spokesman

"The thing is about fairness here. It's my members that actually deliver those targets for Mr Livingston and co. So if it's good enough for him it's good enough for our members."

Chief executive Mr Livingston hit 142 out of a maximum 200 targets set by the company, earning him a £1.2m bonus out of a possible £1.7m, BT's annual report said.

His bonus is in addition to his £860,000 salary.

Mr Livingston turned down a pay rise of £50,000 last year because of what he called the unacceptable performance of BT, so it was postponed to this year.

He has chosen to accept 2% of the rise - the percentage salary award made to employees - and is donating the rest to charity.

Three other members of the senior management team, one of whom has now left, will get bonuses of between £463,000 and £503,000.

'Laughable'

An internal e-mail to BT managers seen by the BBC says: "Declare your skills... You will be aware of the company's final pay offer to the CWU.

"Like many other companies we have a difficult year ahead of us with the global financial climate and increasing competition."

BT chief executive Ian Livingston Chief executive Ian Livingston is accepting a 2% pay rise this year

The CWU's Mr Kerr said that BT's plans were "laughable".

A BT spokesman confirmed preparations to deal with any industrial action 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."

The e-mail asks managers to tell the company about any useful abilities they may have, even though they may be from a number of years ago.

It asks for managers to provide a list of these by 26 May.

Widespread bonuses

A BT statement released ahead of the annual report said: "BT has made significant progress this year and so the higher bonuses are appropriate as we link remuneration to performance.

"Almost 30,000 BT staff will also get higher bonuses as a result (not just the top executives). Performance-related remuneration is our favoured approach and our door is always open - and has been - if the CWU wish to speak to us about such schemes. "

Earlier this month BT said it had returned to profit, making £1bn ($1.45bn) in the year to 31 March. It had made a loss of £244m the previous year.

Over the past two years it has reduced its headcount by 35,000, a fifth of its workforce.

Following a pay freeze last year, BT is offering an increase of 2% in pensionable pay, with a guaranteed bonus.

As well as the "difficult" financial climate referred to in BT's e-mail, the company is also battling to reduce a giant £9bn pension deficit.

BT employees have been contacting the BBC to give their views of the dispute. Here is a selection of their comments.

As an Openreach engineer for the last three and a half years, I am now sick to death of the way we are treated by BT - we have had a number of negative changes made to our working conditions and we work under the most unfair performance management scheme you could ever envisage. Many of us are fed up now at the lack of respect we receive from the top of the company.

Anonymous, Worcestershire

I work for BT Business in Norwich, I think it's ridiculous that the union are looking at striking. The deal offered was, I think, very good considering everything the company has been going through over the last couple of years. The union don't seem to realise that by asking for 5% they might get a quick win, but long term the company won't be able to support it. Very selfish behaviour! I work in sales and the announcement of the scale of some bonuses is frustrating but bonuses are bonuses: I wouldn't live without mine.

Chris , Norwich

No-one wants this industrial action, all we require is a fair pay deal. With inflation at 4.2% a 2% pay rise is a serious cut in our pay. Last year we agreed to a pay freeze, and in addition we lost 20% of our workforce. BT can afford to pay Ian Livingston £1m on top of a handsome salary, all we ask for is a fair pay rise.

Steve, Gloucester

BT employees should be happy with a 2% pay rise. I work for an agency and we are contracted to BT, but we are being made redundant at the end of September. BT employees should be happy that they still have a job as we (45 people) are going to lose ours.

Anonymous, UK

I for one do not want to go on strike. For a start I cannot afford to take a day off without pay and I think a lot of other employees would agree with this too. I'm thankful at the moment I still have a job to come to each day and BT pays well above most jobs in the area anyway.

Anonymous, Cardiff

Huge concessions have been made by the engineering and clerical workforce over the last 12 months for no reward as well as no pay increase. A whole new attendance pattern was agreed and is about to be introduced at no cost and for no reward, including engineers working until 9.30pm every night, six days a week. The feeling in the North East is one of anger.

Anonymous, North East

More on This Story

Related Stories

FROM OTHER NEWS SITES
Times Online Cameron offers no comfort on Capital Gains Tax - 47 mins ago
This is Money FTSE preview: Shares down on China threat - 2 hrs ago
Mail Online UK University vice-chancellors are 'out of touch with reality' on pay levels, warns Vince Cable - 3 hrs ago
New StatesmanBT staff to strike over insufficient pay rise - 4 hrs ago
The Independent In The Spotlight: The BT boss for whom strikes are just a childhood memory - 10 hrs ago
* May require registration

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features

  • Nigel Farage (left) and Douglas CarswellWho's next?

    The Tory MPs being tipped to follow Carswell to UKIP


  • A painting of the White House on fire by Tom FreemanFinders keepers

    The odd objects looted by the British from Washington in 1814


  • President Barack Obama pauses during a press conference on 28 August.'No strategy'

    Obama's gaffe on Islamic State reveals political truth


  • Chris and Regina Catrambone with their daughter Maria LuisaSOS

    The millionaires who rescue people at sea


  • Plane7 days quiz

    What unusual offence got a Frenchman thrown off a plane?


BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.