Telecoms giant BT has offered a near three year pay deal to thousands of its staff, saying it would provide wage stability until early 2017.
The package will be recommended for acceptance by the Communication Workers Union in a ballot.
Under the agreement, over 40,000 workers will receive a 2% increase to their base pay from April 1, 2014 along with a flat rate increase of £200 which will be fully consolidated and pensionable, and will see the majority of employees receive an effective increase of between 2.5% and 3.2% in year one. They will then receive a 2.5% increase in both April 2015 and April 2016.
Gavin Patterson, BT chief executive officer, said: “BT is going through a period of significant change and this agreement will help as it provides welcome certainty to the company, its employees, shareholders and customers.
“We have announced more than 2,500 new jobs in the UK in recent months and we want to create even more. We want to achieve this by working closely with our unions and I am pleased to say they are working very constructively with us to transform the company and improve the service we offer our customers.”
Andy Kerr, Communication Workers Union deputy general secretary, said: “We are delighted to have secured this pay deal for BT workers, which provides wage stability over the next three years. This pay agreement is an excellent achievement and we wholeheartedly recommend a ’Yes’ vote in this ballot.
“These negotiations have been extensive but we have reached an agreement with BT for a pay rise in line with RPI and above. We are confident that safeguards are in place to ensure our members are protected should RPI go up in years two and three.”