Ericsson Pay Negotiations 2011

We have come to the end of pay negotiations with Ericsson for 2011.
You can read details of the company’s offer on the right hand side of this page as well as our response

At this stage we are unable to recommend the offer to members, as it falls short of what your pay negotiators believe to be an acceptable offer. Despite 4 months of negotiations, this is the first time that Prospect or Connect has not recommended acceptance of an offer to members covered by collective bargaining in Ericsson or Vodafone, and is not something that has been decided lightly. However, despite our best efforts to make further improvements we do need to recognise that we have come to the end of negotiations and that this offer is the best that can be achieved through negotiations. Ericsson has explained its’ position and the financial restrictions it is operating under in their letter which you should familiarise yourself with.

The offer does represent improvements in terms of progression to an 80% minimum, which for those whose salaries are below it will mean an increase of at least 2%. It also provides a consolidated base salary increase of 2% which would be effective for the vast majority of our members. This is something that has not happened for some time. Finally, it includes a non-consolidated increase, also of 2% for those over 120%of the ‘market median’ – we have fought hard to improve the extent of consolidated payments beyond the initial offer and to this group also.

However, as members will know, inflation has run substantially higher than 2% throughout the last 6 months and this offer does little to retain members’ living standards or provide progression on previous pay freezes and sub-inflation increases.

Over the coming days your representatives will be arranging and advertising consultation meetings with members. We will seek to meet members face to face in key locations or around team meetings wherever possible to explain how negotiations have progressed, taking feedback from members as well as discussing the options that are likely to follow our consultation. We have asked Ericsson to provide further information on the ‘market median’ figures it is using to enable members to understand what the offer could mean for them.

After we have consulted with members, we will consider the feedback and look to ballot members accordingly, so it really is important that you and your colleagues take part in the consultation process and let us know what you think.