Prospect O2 Annual Pay review 2011

Thanks to those of you who have responded to our newsletter of 19th January regarding this years pay reviews for professionals and managers.

To summarise responses:

• No members have suggested that we should agree the company’s pay offer.
• Some members acknowledge O2’s market position. However many more reject the company’s proposition on the basis of its excellent published results. The overwhelming view is that whilst O2 may have to review its costs, individual employees are continuing to find the cost of living increases placing a great burden on their living standards be they higher or lower earners on O2’s scales. Members continually refer to differentials being inadequate for their level of responsibility and others assert they are underpaid against the market, with reference to colleagues and recent rates of pay for new starters.
• Many of you have noted the current 4.8% rate of inflation and the fact that the cost of living is destined to remain high for the forseeable future. Many of you commented on the indications that bonus awards will also be lower than usual (some have advised us that will not be the case for those they are managing).
• The PCG award has also been poorly received for similar reasons.

We understand that members are still letting their managers know their views about pay and expressing their thoughts on “Open Voice”.

Prospect has worked hard with O2 to increase the initial pay offer to 2.75%. It is however clear that members feel the offer remains inadequate.

Prospect’s belief continues to be that there is a solution to our disagreement with O2 on pay. However it needs more money to address the low pay issue and ensure that at a time of high inflation everybody receives a pay rise.

The anomalies within O2’s pay system for professionals and managers are becoming increasingly understood by members, many of whom have expressed their feelings of being undervalued in different ways. Prospect believes these anomalies need to be tackled. We hope to be be able to really focus on this once 2011 pay negotiations are concluded and we can commence a review of pay and grading arrangements with O2, however it is clear there needs to be more money put into this year’s deal if O2 wants to carry Prospect members with it.

On the basis of the strong feelings expressed by members Prospect has confirmed its rejection of the Company’s pay offer. We hope that the Company will address your issues and unease in discussions with Prospect with some urgency. We will continue to try and resolve this disagreement with O2 constructively in a way that reflects members’ consistently expressed concerns.