BT workers facing strike ballot

The telecoms giant could suffer major disruption as the trade union is set to “press ahead” with its ballot for industrial action. BT has been locked in a pay dispute with the Communication Workers Union (CWU), which represent between 50,000 and 60,000 BT employees including engineers, retail staff, and call-centre workers.
The union, which is pushing for a 5% pay rise, following BT's annual results last month showed a 162% increase in cashflow, and profits of just over £1bn. Leading union leaders argue that their 5% claim would account for only a small fraction of BT's wealth.


BT however, is offering a 2% pay rise this year, followed by a further 3% rise next year. It is also offering a £250 bonus and a further £250 in performance-related pay. The previous offer was a one year deal of a 2% rise.
BT has also pledged not to make any voluntary redundancies until 2011 if staff accept the new terms. It also plans to bring call centre jobs and office work back from India.
Union leaders have accused BT of "blatant double standards" in its plans to award bumper bonuses to senior management after a rise in profits. Union leaders were further enraged when BT's annual report revealed that the company's chief executive, Ian Livingston, saw his bonus more than triple last year, taking his total pay package, including shares, above £3m.
It also emerged that Livingston's salary was to be increased by £50,000 to £900,000 this year, although he pledged to limit the rise to 2%, equivalent to what is being offered to BT's staff, and donate the rest to charity.
"We've made our position very clear: 2% is not good enough when the company is making profits of over £1bn, paying shareholders a 6% dividend and paying out large sums to senior executives while inflation is at 5.3%," Kerr said.
Ballot papers will be sent out on the 18th June and the ballot will close on 5 July with the result expected the same day.