BT facing national strike ballot as union rejects 2pc pay offer

Telecoms giant BT is facing the first national strike in more than 20 years after being given a deadline to improve a pay offer.

The Communication Workers Union (CWU) said it will ballot up to 60,000 of its members for industrial action unless a two per cent offer is increased by June 4.

The decision by the union's national conference in Bournemouth was made just after BT announced its chief executive received a bonus of 1.2m last year on top of a salary of 860,000.

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Ian Livingston was given a 50,000 pay rise last year, which would have taken his salary to 900,000, but he did not accept it at a time when BT froze the pay of staff, so it was postponed to this year.

He is accepting a two per cent rise on his 850,000 salary rather than two per cent of the extra 50,000, which means he is taking around 17,000 and he is donating qround 34,000 to charity.

Three other directors received bonuses totalling more than 1.5m, including Hanif Lalani (503,000), who left BT in January.

Andy Kerr, the union's deputy general secretary, said: "This is about fairness. We don't mind senior executives getting bonuses, but we want all staff to share in the success of the company.

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"Staff have borne the brunt of the cost savings and have delivered the profits but are being treated as a second-thought.

"BT can afford a decent pay rise for staff this year, there's no doubt about that. Their profits are extremely healthy and free cash flow is almost double the forecasts at 1.9bn.

"With a pay-freeze last year and inflation now running at 5.3 per cent, BT's attitude to pay is insulting and the staff deserve more.

"Strike action is clearly a last resort. We've not had a national strike in BT since 1987 so this is not something we take lightly. We hope the company will return to negotiations and avoid the need for any strike action."

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A BT spokesman added: "We are disappointed by the CWU's decision to call a ballot but our door remains open.

"It is in no-one's interest for industrial action to take place and we have written to the union this week to say we remain willing to meet with them. "

"Our final offer is fair, realistic and more generous than those they have accepted elsewhere."