To: All Branches with members in BT

cc: T&FS Executive Dear Colleague BT Pay 2010 – Encouraging the support of members

BT is taking a tough stance on pay again this year with claims of commercial and competitive challenges and last week’s offer of a non-consolidated award. We need to do all we can to galvanise the support of our members to demonstrate that pay is a serious issue for the CWU this year.

I am writing to ask Branches to encourage members to raise the issue with BT and highlight the importance of a fair pay deal at every opportunity, including with their line managers and during team briefings. Some of the key arguments members may find useful to support their position are as follows: The talent and commitment of CWU members have been instrumental in helping to achieve BT’s dramatic financial recovery over the last nine months which has seen an 11% rise in profits (EBITDA) and £1.6billion cost savings.

Part of these cost savings have been made possible through members’ acceptance of new attendance patterns which have brought unsocial hours and a reduction in overtime and call-out pay. The cost of living has been rising in recent months with headline inflation (RPI) now sitting at 3.7%, putting greater pressure on CWU members’ finances.

Essential items generally experience higher price increases during a recession, as companies try to limit revenue losses by increasing the price of those things people cannot do without. The price of food, domestic fuel and public transport rose by 7 to 12 per cent in 2009, and predictions are that households will face rocketing food, heating and travel costs over the next five years as a result of the current oil crunch.

The rising cost of essential items has a greater impact on low and average income households who spend proportionately more on these items. Current forecasts predict that RPI will peak at 4.1% in April, before dropping back slowly to 3.1% in December.

CWU members have already accepted significant changes to help sustain the future viability of the BT Pension Scheme, and an unconsolidated, non pensionable pay award would further reduce pension benefits and undermine the right to a decent standard of living in retirement.

The more support we have from members on this issue, the better chance we have of achieving a fair deal on BT pay this year.

Thank you for your help in this matter.

Yours sincerely

Andy Kerr Deputy General Secretary (T&FS)

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To: All Branches with members in BT

cc: T&FS Executive Dear Colleague BT Pay 2010 – Encouraging the support of members

Further to my previous message, the following email addresses may be useful regarding BT pay:

Ian.livingston@bt.com and alex.2.wilson@bt.com

Members may also wish to voice their opinions on pay to the CEO’s in each line of business including:

Steve Robertson in Openreach

Gavin Patterson in BT Retail

Sally Davis in BT Wholesale

Jeff Kelly in BT Global Services

Yours sincerely