BT Pay – proposed pay agreement

We have now reached a proposed pay agreement with BT which we are recommending that you vote for in an e-ballot that will start next week. You can read the details of the agreement below.

 You can also access the full terms of the agreement on our web site www.prospect.org.uk/btpayreview

 In headline terms, the agreement provides for:

• A three year, 2.5% increase in the pay budget (ie 2.5% wef 1 June 2014, 2015 and 2016)
• A matrix (one matrix this year, covering all benefit bands) providing a minimum increase of 2.5% for an AS DPR for those in Q2 of the pay range and 1.75% for those who are AS and in Q3 of the pay range. We will also conduct negotiations on the matrices in 2015 and 2016, and this is committed to in the offer letter. You can view the proposed 2014 matrix here
• A ‘cap and collar’ review clause, under which, if RPI is over 3% or under 2% in February 2015 or 2016, this will trigger a review that will look at the budget in the light of inflation among other factors. We have looked very carefully at the range of economic forecasts – particularly in relation to inflation and economic growth for the next three years – and notwithstanding this cap and collar review clause, we feel that inflation and general economic trends broadly support the proposal that a 2.5% per year review budget for the next three years is reasonable.
• A commitment to a review of the RF and, in line with recent years, the  pay ranges in the RF (over 300 roles in total) have all been increased, by a range of amounts, but at least by 1% and typically by about 2%. The ranges will also be reviewed each year ie in 2015 and 2016. Full details of these range movements are available here
• Shift and on call allowances will be increased by the same 2.5% on 1 June 2014, 2015 and 2016.
•  In line with Reward Framework principles on equal pay, there will be a review each 1 January (consistent with recent reviews, which have been based on circa 0.3% budget) aimed at people low in range. 

We were unable to get the company to agree to re-basing overtime on a 36 hour week. However, we will not let this drop and the company is clear about this.

 We have however made potential progress on the issue of company ‘perk’ cars. Whilst we could not secure an immediate increase in the value of the car and the cash alternative, BT Fleet is to review the way these cars are procured. We will argue in this review that BT should look at more flexible lease arrangements, leasing cars in future on the basis of a much lower annual mileage than the current 20,000 miles per year arrangements. Few ‘perk’ car drivers do anything like this mileage (8,000 miles per year would be more normal) and if cars are in future leased on this basis, the cost of doing so could be lower, giving individuals a wider choice at existing ‘cost’ and generating savings. We will seek to argue that BT could then re-cycle some of this saving in the form of an increase in the cash alternative.

 The union recommends that you should accept this offer. It is clearly the best achievable by negotiation and will provide the great majority of our members an increase in line with or better than the current rate of inflation (which in March was 2.5% as measured by the Retail Prices Index). We have also managed to get increases in every pay range for the first time and the equal pay reviews will continue for the next three years.

 We have also secured a reference to the Retail Prices Index (RPI) for the pay of our members until 2017. We view this reference to RPI as important – the recent press coverage about pay ‘outstripping inflation’ have all cited CPI (at only 1.6% currently) rather than RPI (currently 2.5%) and the Office for National Statistics now describes RPI as ‘not an official statistic’. We firmly believe that RPI is a more appropriate and accurate measure of real increases in the cost of living.

As ever, we will be e-balloting all BT members on the terms of this offer and it will not be agreed to unless members vote for it. We will as usual email you separately about the ballot and with your unique identifiers for that ballot. The ballot will open on Wednesday 30 April and close on Monday 12 May.