BT PAY BULLETIN

£400 non-consolidated offer Recommended

Following the last bulletin on BT pay when we reported that talks had been constructive, the Company has tabled an offer of a non-consolidated payment of £400 to all CWU represented NewGrid grades, to be paid pro rata for part-time employees. This consists of an initial payment of £200 in August 2009, followed by another payment of £200 in December 2009.

BT has made it clear that this is their full and final offer. The CWU is in no doubt that this is the best deal that can be achieved through negotiation, and on that basis we intend to recommend the offer to our members in a consultative ballot. The CWU’s Executive has taken the view that industrial action in BT over pay would not be a responsible route to take in the current economic climate.

The CWU’s pay claim in BT this year was for a significant and consolidated increase in real terms because that is what we believe our members deserve. However, the economic and financial difficulties forming the backdrop to this year's BT pay talks have proved a serious obstacle in achieving a level of reward that adequately reflects the contribution of CWU represented employees.

§ Headline inflation fell below zero in March this year, and current forecasts predict it will remain negative until December 2009.

§ BT’s end of year results are among the worst since the Company was privatised in 1984, with an overall loss of £134m.

§ Many other companies have frozen pay and some have reduced pay in response to the economic situation.

However, Retail, Wholesale and Openreach, supported by Design and Operate, have posted their best results for five years despite the recession. Global Services has suffered financial problems resulting from the mismanagement of contracts by senior executives, but the CWU has been clear that we will not allow our members to pay for the mistakes of high ranking decision makers. All CWU members in BT deserve to be rewarded for their contribution in helping the company to meet its ongoing commercial and competitive challenges.

A consultative ballot of CWU members is expected to run for three weeks from the week commencing 20th July, and the CWU Executive is recommending you vote yes to accept the offer.