BT faces first strike in 20 years over 'insulting' pay

BT WAS last night facing the prospect of its first national strike in more than 20 years after unions issued a deadline to improve a pay offer.

• Up to 60,000 members of the CWU will be balloted on strike action at BT. Picture: PA

The Communication Workers Union (CWU) said it would ballot up to 60,000 of its members for industrial action unless BT raises a 2 per cent offer by 4 June.

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

Ian Livingston hit 142 out of 200 targets set by the telecoms company, giving him a bonus of more than 70 per cent of a possible 1.7m.

Scots-born Livingston was awarded a 50,000 pay rise last year, which would have taken his salary to 900,000. However, the rise was postponed by 12 months after he refused to accept it at a time when the company was forced to freeze the pay of other staff.

Livingston is accepting a 2 per cent rise to his 850,000 salary rather than 2 per cent of the extra 50,000, which means he is taking about 17,000 and donating some 34,000 to charity.

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

Andy Kerr, the CWU'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.

"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. Its profits are extremely healthy and free cash-flow is almost double the forecasts at 1.9 billion.

"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."

Kerr said strike action was "clearly a last resort". He continued: "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."

A spokesman for BT said the group was "disappointed" by the decision to call a ballot, but said its "door remains open".

He added: "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."

Under the offer, the lowest-paid staff would receive a pay increase of up to 5.4 per cent in salary and bonuses, with thousands of staff also receiving a second pay rise in October.

Former Labour minister Patricia Hewitt, who is a BT director, was paid 128,000 in the last financial year.