4/15/2010 2:48:00 PM
'Last gasp' move to break O2 pay deal deadlock
O2 and union leaders are meeting for the last time today (16 April) in a bid to break the deadlock over this year’s pay rise for O2 retail, engineering and technical staff.
The Communication Workers’ Union (CWU) is warning O2 that it could face industrial action if a pay deal for 2010 is not hammered out today in the meeting.
A CWU spokeswoman said: ‘This is a “last gasp” meeting in which we can try to find an amicable solution. O2 are still offering only around 2% across the board and there is still no movement on pay progression. This is despite O2 giving a commitment in the last pay round to hold formal talks on pay progression this year.’
She added: ‘O2 have told us it has reached the end of its mandate. We have said that it is not good enough. If they fail to improve their offer in this meeting, we will go back to our members and look at other options including industrial action.’
O2 upped its offer from 1.25% to 2% last month but warned it will have to
cut spending ‘across the employee and customer experience’ to fund the
The 2% pay offer has been rejected by the CWU, which represents O2’s retail, engineering and technical staff. The CWU is holding out for more, arguing the offer does not meet the current rate of inflation, which is running at around 3.7%, according to the Retail Price Index.
O2 said: ‘We continue to meet regularly with the CWU and are surprised they see this as a “last gasp” meeting. We are both obliged to exhaust all conversations and internal processes before considering industrial action. We believe there is more talking to do and remain open to considering any proposals the Union may make.’