O2 and CWU reach two year pay deal
Operator’s workers to get 2.5% raise this year and 2.75% next year
O2 and the Communication Workers Union ( CWU) have reached a deal over a pay dispute after several months of negotiations.
The deal, which spans two years, will see most O2 staff getting a 2.5% pay increase this year and a 2.75% increase in 2011.
O2 and the CWU resumed discussions earlier this week after pay talks broke down in April when the operator refused to improve its offer of a 2% pay rise for 4,000 call centre, engineering and specialist technician staff.
The deal sees O2 agreeing to pay 0.5% more than it had agreed in April.
It is hoped the agreement between the union and the operator will create stability for both employees and O2 itself.
A joint statement released by O2 and CWU said: ‘Telefónica O2 UK and the CWU are pleased to announce that agreement has been reached between respective negotiating teams on pay. The proposed deal is for two years and represents a 2.5% increase for most people this year with a further 2.75% in 2011.
‘Agreement has also been reached on how to take forward the issue of pay progression within the same timescales. Full details of the deal will be published soon. The CWU will be strongly recommending acceptance to its members in a consultative exercise in the next three weeks.
The statement added: ‘The two year deal will provide stability and certainty for both O2 employees and for the Telefonica O2 UK business in a time of continued economic uncertainty and in a highly competitive market. The agreement clears the way for Telefónica O2 UK to focus its energy on the strategic objective of converting customers into fans. This initiative and aim is fully supported by the CWU.
‘Both parties recognise that customers who are fans of a brand expect O2 people to be fans of that brand too. Telefónica O2 UK is proud of its employee offering and its position as a top 20 UK employer. The CWU is pleased to be working with Telefónica O2 UK and will continue to support its members as they sustain and further develop this position. The CWU will be further writing to its membership setting out details of the consultative exercise and the full detail of the proposed agreement.’
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 | Balihar Khalsa, Reporter | |
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