BT strike looms as union rejects pay deal

Thousands of BT Group staff are almost certain to go on strike next month after their union rejected the company's last ditch attempt to avert its first walk out in almost a quarter of a century. The Communication Workers Union, which represents more than 50,000 BT employees, yesterday dismissed the company's new offer and accused Britain's largest telecoms company of "blatant double standards".

The union, which has already begun preparations for the company's first national strike in 23 years, said there was "no material change" to BT's revised pay deal, which offered staff a 2pc pay rise this year followed by a 3pc increase next year.

BT's blue-collar workers are angry that they have been offered a below-inflation pay rise, while some senior executives have been granted increases in excess of 7pc.

Andy Kerr, deputy general secretary of the CWU, said: "As we've made clear, 2pc is unacceptable for our members as it does not reflect the reward they expect given the contribution they have made to cost savings of £1.75bn and profits of over £1bn.

"In addition, inflation is at 5.3pc and staff are comparing this offer with the large salary rises and bonuses for senior executives which expose the blatant double standards being adopted by the company when it comes to remuneration."

Ian Livingston, BT's chief executive, collected a bonus of more than £1.2m last year as his total pay exceeded £2m. He was also granted £1.2m worth of shares if he stays with the company for three years. Tony Chanmugam, finance director, and Gavin Patterson, chief executive of BT Retail, each collected £1.1m last year, and have been granted pay rises of 7.4pc and 5pc, respectively.

The CWU has warned that the first national strike since 1987 could leave thousands of households and businesses without a working phone line or broadband access, because the majority of its members work as engineers or in call centres dealing with faults.

It could be the first strike in a summer of unrest as the Government has committed to swingeing public sector cuts.