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BT is offering its staff sabbaticals on reduced pay, as well as various other flexitime working options, in order to cut costs.

The telco is also holding down executive pay, as detailed in its annual report.

The company is piloting various other ways to control costs. Staff are being offered special leave on part pay, sabbaticals and part-time contracts.

BT said: "Many types of flexible working arrangements have been in place for some time and others - including special sabbaticals, term-time and part-time working - have been modified to reflect the current economic climate. These are being piloted in certain parts of the business and we will evaluate the potential make these more widely available in due course."

"BT's innovative working practices include broadband supported home-working, as well as secondments to, and from, other organisations."

Term-time working is aimed at parents who want to keep school holidays free - revised salaries can be spread over the year so you still get a monthly cheque.

BT's Remuneration Committee is setting base salaries for execs at below the median level of its comparator group. Total packages, including bonuses, won't hit the top quartile unless there is sustained and excellent performance.

BT said in March it was freezing salaries for all 100,000 staff in response to the credit crunch. The company is also cutting 15,000 jobs this year, after cutting the same number last year. ®

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