Feeds

BT freezes wages for 100,000

Bosses can expect 'substantially reduced' bonuses

Boost IT visibility and business value

British Telecom is freezing wages for all its 100,000 UK staff in a "head on" response to the economic downturn.

A BT spokesman said: “BT can confirm that, after careful consideration, there will be no pay rises as a result of this year’s review of salaries. This will apply to all UK employees, including BT’s most senior executives. The company has informed its employees and unions.

“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.”

But it seems like not all BT's unions got the memo - Communication Workers Union Deputy General Secretary Andy Kerr, said: "A pay freeze is wholly unacceptable. BT is still making substantial profits and a pay cut in those circumstances is an insult to staff."

CWU will make a formal response next week.

They'll no doubt take into account that that managers and execs are still likely to be in line for bonuses - though they are expected to be "substantially lower" than in previous years.

The telco said in November that it would cut 10,000 jobs - mostly contractors and temps. An internal email, seen by the Reg, was brutal about the urgent need for serious cost cutting exacerbated by losses at BT Global Services.

But the stock market seemed unimpressed - BT shares were up very slightly today to 71.5 - half what they were worth in January. ®

The Essential Guide to IT Transformation

More from The Register

next story
Scotland's BIG question: Will independence cost me my broadband?
They can take our lives, but they'll never take our SPECTRUM
Bring back error correction, say Danish 'net boffins
We don't need no steenkin' TCP/IP retransmission and the congestion it causes
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
NBN Co adds apartments to FTTP rollout
Commercial trial locations to go live in September
Samsung Z Tizen OS mobe is post-phoned – this time for good?
Russian launch for Sammy's non-droid knocked back
Telstra to KILL 2G network by end of 2016
GSM now stands for Grave-Seeking-Mobile network
Seeking LTE expert to insert small cells into BT customers' places
Is this the first step to a FON-a-like 4G network?
What FTC lawsuit? T-Mobile US touts 10GB, $100 family-of-4 plan
Folks 'could use that money for more important things' says CEO Legere
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.