Transcript 2010 CWU Pay Review for Team Members who are NewGRID Grades

2010 CWU Pay Review for Team
Members who are NewGRID Grades
THE REAL FACTS AND QUESTIONS
YOU NEED ANSWERING
Where are we on BTs 2010 Pay Cut ?
We have been talking with BT for the last 3 years about
reducing operating costs and Pension Liabilities
BTs Latest offer is not an Improved Offer, it is STILL 2% for
2010, and the Performance Bonus on offer will never be
achieved, Ask your Manager
We the CWU are asking for a realistic Pay Rise to reward
our efforts over the last 2 years, Remember we agreed to
0% last year, so in Real Terms we are already asking for a
5% 2 year award
Therefore we have Rejected BTs so called Improved Offer,
because for 2009 & 2010 there is no overall Improvement
Issues we have NOT discussed with the CWU about Pay
• BTs Business Performance & Results
- BTs Profit is once again on the UP, over £1 Billion last year
- BT Doubled it’s free cash flow to £1.9 Billion exceeding all forecasts
- BTs Cost Savings were £1.75 Billion, partly delivered by a
2009 Pay Freeze
30.000 Redundancies
Changes to the BT Pension Schemes
• Protecting BTs Future Business the CWU Agreed To
- Unprecedented changes to Attendance Patterns across the whole BT Group
- Delivering Outstanding Performance through the Transformation Programmes
- Rise to the NGA Challenge to enable our Customers Super Fast Broadband
- Go that Extra Mile to keep BT the UK’s Market Leader
• Impact on BT Pension Scheme
- As a result of the recent changes agreed by YOU the CWU Members
- Sustainability
- Realistic Deficit Recovery Payments
- And the Right to Reasonable Pension Increases as promised by BT
The economy & the external market data
• Inflation is currently over 5% and expert analysis's predict it will remain
near that level
• The New ConDem Government is intent on Raising Taxes and a lot more
• Public Sector Awards will also suffer under the ConDems and
public services will suffer as a result
• Examples of other Pay Awards listed below
Royal Mail
2.1%
Virgin Med
2.0%
British Gas
1.8%
& Last
Year !
& Last
Year !
& Last
Year !
Rolls
Royce
2.0%
BAE
Systems
2.0%
& Last
Year !
& Last
Year !
BT’s Team Member pay & benefits are ahead of the market,
so are BT’s Profit’s and it’s Customer Service
BT’s improved final pay offer is really a pay cut
2% consolidated and fully pensionable for 2010 (inflation is 5% +)
3% consolidated and fully pensionable for 2011 (inflation forecast 4.3%)
Details
•
Profit related reward for all Team Members £250 July 2010
Introduction of Performance Related Pay (very Dangerous precedent)
•
Potential for additional Profit Related Award of £250 in 2011
What is the target, they won’t tell us, will it be achieved – No Chance
•
New pay review date January 1st 2011 – CWU not consulted Why ?
•
Conclusion of other pay deals for Team Members e.g. former Sitel
Of Course, The CWU will strive for a realistic Pay Award for all Members
•
More Jobs back into BT – This is already happening (Project Holborn)
•
Enhanced Job Security - No compulsory UK redundancies until end 2011
The CWU has separate agreements dealing with compulsory
redundancies, and at no time have these been discussed during these
pay negotiations – if anyone is made compulsory redundant the CWU
will Ballot it’s membership for industrial Action.
What our offer means for you – for example
2010 – 3% Pay Cut in real terms – Plus consider these factors
• Reduced Pension
• Increased Taxes
• Rising Mortgage Cost
• Rising Gas & Electric Bills
• Rising Fuel Costs
• Rising Food Prices
• A Lot Less Money in your Pocket
You will also have to
• Up your Performance to reach unrealistic Targets – To increase BT’s Profit
• Work Later for Single Rate – To increase BT’s Profit
• Work Saturday’s for Single Rate – To increase BT’s Profit
• Tolerate BT’s Management Style – Increasing work related Stress
For the c7600 people who will get their rightful pay progression
(increment) in October 2010, to include that in their pay offer ?
We would not dare insult your intelligence by commenting on this
What the offer means for BT and it’s Board
BT executives have received generous bonus payments, including:
•
•
•
•
•
•
Ian Livingston CEO - basic £850k plus annual bonus of £1,206k, total
up by 79% on 2009. He is also set to get a 6% pay rise this year, but
has pledged to take a 2% pay rise and donate the rest charity.
Sir Michael Rake, Chairman total of £670k up from £630k – a 6.3%
rise – in 2009 for working part time.
Hanif Lalani, ex Finance Director, total of £1,166k, up from £805k in
2009, a rise of 44.8%.
Patricia Hewitt, non executive director who helps to decide
remuneration – £128k up from £75k for just a few days a month.
Gavin Patterson, BT Retail CEO, total of £1,133k, up from £698k in
2009, a 62.3% increase.
Tony Chanmugam, Finance Director, is set for a pay rise worth more
than 7%.
More Growth, Profit
&
Free Cash Flow
Increased
Shareholder Value
&
Increased Dividend
Yet more savings at
the Expense of CWU
Members
What industrial action would mean….
For Our Customers
Would continue to receive a world class service delivered by loyal
BT Employee’s paid the correct rate for the job Our Custom
For Our Business
A realisation that the success of the company depends mainly on
it’s workforce, who fully deserve their share of that success
For You
Making a stand for what’s fair & what’s right, informing the
company through a Ballot that you want your share ………..
To sum up……..
•
•
•
•
•
•
The Pay Offer is not attractive – it is derisory
Profitable Growth is down to your hard work – you want rewarding
Our cost controls have exceeded our targets to date
The Economy is still fragile – but didn’t we make sacrifices last year
The risk to the pension fund is minimal with a 5% increase
Team Members deserve their fair share of the profits
Industrial Action is the very last resort, but BT’s failure to agree a
reasonable pay offer for NewGRID grades has left the CWU with no
alternative other than to Ballot it’s membership
VOTE YES IN THE FORTHCOMING BALLOT
CWU BT Pay Claim 2010
www.cwu.org/bt-pay-campaign-2010.html
www.cwumail.org/webmail
And Log in using your user name & password
Also Contact your local CWU Branch Office