BT ends strike talks with new pay deal

BT and the Communication Workers Union (CWU) today announced they have agreed a new three year pay deal worth 9.3%, putting an end to months of strike talks.

The new pay package will give team members pay rises worth 3% each financial year from April 2010 to March 2012, with the rise being backdated to January 2010.

BT had previously offered just 2% from April 2010 and 3% from January 2011. The CWU meanwhile had originally demanded a 5% pay rise for 2010/2011 alone.

The CWU will recommend the deal to its union members in a consultative ballot in the next few weeks.

Ian Livingston, chief executive of BT, said: ‘This agreement is good for BT, its employees, shareholders and customers. BT will benefit from a long period of certainty whilst our employees will have financial stability during uncertain economic times’.

Meanwhile, Andy Kerr, deputy general secretary of CWU, said: ‘We’re delighted to have resolved this pay dispute through talks’.

‘This is a fantastic deal for our members providing a fair rise in their basic pay this year and for the following two years. This deal is among the highest pay settlements in the country this year recognising the contribution of staff and BT's success over the last year’.

The news comes just four days after the CWU was forced to cancel its strike ballot, following a legal challenge from BT.