Union Gets O2 Pay Offer, And Seals BT Deal

The Communications Workers Union (CWU) has won a 2.5 percent pay offer for staff at mobile operator O2, while BT workers have accepted a deal of more than three percent, also secured by the union.

Three thousand engineers, sales staff and call centre workers at O2 will get 2.5 percent this year and 2.75 percent next year, if they vote to accept the offer, which the union negotiated over seven months. Meanwhile, BT staff have voted to accept a 9.3 percent rise over three years recommended by the CWU, after a negotiation process which included a threatened strike by CWU members at BT.

O2 deal includes pay progression

The O2 deal has settled a five year dispute over O2 excluding many staff from “pay progression”, or increases within a pay-grade. O2 staff are graded from 1 to 4, and although 3 is described as “satisfactory”, staff reaching that level have been denied pay scale increases. “Up to three quarters of people working in O2 shops have been excluded, even though they are judged satisfactory,” said a CWU spokesperson.

“This is undoubtedly the best deal we could achieve through negotiation,” said Andy Kerr, CWU deputy general secretary. “This is a much-improved pay offer which rewards staff for their hard work and contribution to the success of O2. Potentially thousands of staff – especially those who work in O2 shops – could now benefit year on year. Until now the only way they could progress was through the annual pay negotiations.”

CWU members at O2 have until 19 August to vote on the deal, with the union recommending they accept it – meaning staff would have the rise in their August pay packets.

Pay negotiations take into account specific characteristics of different employers, explained the CWU spokesperson: “Last year we recommended a pay freeze at BT, as the economy was particularly grim, though staff did get a cash sum. This year, BT made £6 billion profit, and gave a six percent dividend.” The union therefore recommended staff to reject BT’s initial pay offer,

Both BT and O2 have full union recognition for the CWU, increasingly a rarity, and one which owes something to the companies’ joint heritage. CWU has been the recognised union at both companies before O2 spun off from BT.