BT Pay Review 2016
We have now successfully reached an agreement with BT on the 2016 pay review.
As you will recall, we reached a three-year agreement in 2014, which was due to provide for
- A 2.5% increase in the BT Reward Framework pay budget for each of the pay reviews in 2014, 2015 and 2016, distributed via a matrix generating increases with effect from 1 June each year. Individual increases (distributed via a matrix) are related to performance and position in your pay range.
- An equal pay review on the first of January each year (2015, 2016 and 2017) providing increases for those low in their pay range,
- A review each year of the pay ranges themselves, with effect from the 1st of June each year (to apply prior to the application of the 1 June pay increases, so that members would potentially benefit from those increased ranges, in terms of their position in their pay range).
The three year agreement was, however, subject to a ‘cap and collar’ review. If inflation as measured by the Retail Prices Index fell below 2% or rose above 3% in the February of each year, the applicability of the 2.5% budget that year would be reviewed.
We have now concluded that review and are pleased to report that, although inflation was below 2% in February (it was 1.3%), BT has agreed nevertheless to honour the 2.5% budget increase.
There will once again be three matrices showing what the range of increases will be for each of the three benefit bands in the Reward Framework. You can access those matrices by clicking on the following links:
The matrices are essentially identical to last year’s in terms of the range of increases each will provide.
However, there is one difference, in the BB1 and BB2 matrices, relating to the treatment of DN APRs for those in quarter one and quarter two of their pay range. Last year, the figures showed that increase would be ‘up to’ a figure, with no underpinning minimum increase. This resulted, in our view wrongly in some cases, in a number of those with DN APRs getting no increase, since DN is not designed to be a punitive mark. We put it to BT that we needed underpinning increases this year for those with a DN APR and who are below the 100% point in their pay range. BT has reserved the right to award no increase where the individual has a “consistent DN rating or performance is continuing to decline”.
This should be interpreted as where the individual either has two or more DN ratings in the last three, or where there is evidence that the individual’s performance is on a downward trajectory (for example they are on a formal under-performance process). Otherwise, we would expect any individual with a DN rating and who is below the 100% point in the range to receive at least the minimum underpinning increase.
We have also secured increases in every one of the some three hundred individual pay ranges in the RF. You can see these increases by going to this link – where you will need to be logged on as a member, as these ranges are visible only to BT members of the union.
We have also drawn up pictures of each job family in the Reward Framework, with the ranges, benefit band and OTB attached to each role within each family and can be viewed by clicking here. Again, these are available only to BT members of the union so you will need to be logged on as a member to view them.
The detailed management guidance for this year’s agreement can be accessed here
As usual, we have created our normal look-up facility where if you input your current pay rate, DPR mark and RF role code, you can see what the range of increases can mean for you personally and can be accessed here. Again this is available only to BT members of the union so you will need to log on to use it.
You can also read the company’s offer letter here. We won’t be balloting members on this offer as it is a continuation of the three year deal we balloted members on in 2014. The union’s BT Committee has formally accepted the offer.
Once again, there will be an equal pay review for those low in range with effect from 1 January 2017. We will communicate on that review in due course.
This is the final year of the three year deal. As inflation has remained low, the vast majority of members will enjoy significant real increases in their pay over the three years.