Mobile phone giant O2 faces a summer of discontent following the collapse of pay talks in Britain, union leaders warned today.

BT workers have overwhelmingly accepted a 3.5% pay offer, ending the threat of industrial action, it was announced today.

BT workers are pressing their union to hold a ballot for industrial action because of lack of progress over a pay dispute, it emerged today.

Hundreds of BT workers are today staging an eleventh-hour bid to prevent the telecoms giant inflicting ‘‘insane damage’’ on itself by demerging its mobile phones arm.