Number's up on BT pay rises
TELECOMS giant BT is to freeze the pay of all its staff this year, including its most senior executives.
The firm, which employs more than 100,000 staff , blamed the “tough economic climate” for the decision, which follows a series of similar moves by other firms, notably those in the motor industry. It has around 4,500 staff in the North East, including nearly 1,500 in Newcastle.
A spokesman said: “This has not been an easy decision but, given the tough economic climate, it is important BT meets these challenging times head on. Our unions have always been pragmatic in recognising the challenges that face BT and so we hope they will support our efforts to ensure BT remains a healthy and sustainable company for many years to come.”
BT made no general announcement about the move but said in a message to staff: “After very careful consideration, we have reviewed the need for a pay increase this year and have decided there will be no pay rises. This is not a decision we have taken lightly.
“We have carefully considered the current economic conditions, the pressures the business faces, the UK’s Retail Price Index (RPI), and concluded that it is the right thing to do.
“In recent years, BT has awarded pay increases in line, or above, the Retail Price Index (RPI) which tracks the price increase of most consumer goods. This year RPI is expected to go negative which means that prices are actually falling. While this is very unusual, we are living in unusual times.”
BT said it would be “inappropriate” to incur additional expenditure and potentially put people’s future employment “at risk”.
Staff were also told that any bonus payments would be “substantially lower” than in previous years – and in many cases wouldn’t be paid at all.
