CWU rejects increased BT pay offer

Following a recent meeting between negotiators from BT and the Communications Workers Union (CWU), which began with the union’s outright rejection of a tabled 1.5% pay offer, the union have today rejected BT’s increased 1.7% pay offer.

BT were adamant that the company could not afford a settlement which reflected the cost of living index, but the union’s negotiating team was equally adamant that it could not countenance such a low offer.

In a letter sent to the union prior to the meeting, Joe McDavid, BT’s Employee Relations and Policy Director, said: "If we (BT) are to succeed in the new markets, where margins will be lower, we must be able to compete on price and we must therefore control our cost base. The company is asking the CWU to consider the long term success of the company which employs 70,000 of its members."

The CWU team countered by arguing that the way to succeed in new and old markets is to invest in growth and BT people, and not to undermine staff morale by cutting CWU members pay in real terms.

BT finally increased their offer for 2004 from 1.5% to 1.7% and asked the union to respond at the next meeting. The CWU has announced that it will also be rejecting this offer outright and that a further meeting is being arranged.

A union statement said: "While we are pledged to working with BT to capture the new wave markets such as broadband and ICT, we cannot accept that the way to succeed in these markets is through a reduction in the quality of life of our members and their families. BT need to re-think their position if we are to avoid a major dispute."

(GB)