20th January 2012   BT PAY BULLETIN No1

TALKS OPEN TO SEEK TO MITIGATE THE IMPACT OF RPI

Dear Colleagues,

The CWU has begun discussions with BT on pay for Team Member NewGRID grades after the November 2011 RPI hit 5.2%, invoking a clause in the three year 2010 pay agreement to open talks to seek to mitigate the impact of a volatile RPI.

BT have confirmed the 3% agreed will be paid in January 2012, but there is still a gap between your pay and the rise in the cost of living.

The CWU’s third pay meeting with BT took place on 17th January when we put forward a robust case for a further pay increase on top of the 3% already awarded to close the cost of living gap, citing:

The price of essentials like food and fuel have risen by more than non essentials like leisure goods, hitting CWU members hard

BT’s profits are built on the backs of CWU members who are under more pressure from cost cutting measures

BT’s pre-tax profits rose by 36% to £552m in the second quarter

Total operating costs fell by 3% or £108m

BT is highly competitive and its share price has surged 53.8% since July 2010, with analysts predicting a further 30% rise

Analysts believe BT’s pension deficit is set to reduce, resulting in higher free cash flow

BT's market leading position rests on its ability to award market leading pay settlements and sustain pay in real terms

There is a clear reluctance on BT’s part to make an offer beyond the agreed 3%, but with the price of everyday goods soaring the CWU is determined to do all we can to ensure BT stick to their promise and seek to mitigate the impact of volatile inflation.

No further meeting dates have been set at this stage, but members and branches will be kept updated on progress.

If you would like to send us your views on pay please email us at BTpay@cwu.org

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