O2 members accept pay rise.

9th April 2013

Members across O2 have voted by 89% to accept the company's "final and definitive" pay offer of 2.5%.       
The deal, which was unanimously recommended to members by the CWU's O2 national negotiating team in a consultative ballot that closed on March 27, also secures enhanced pay progression payments for a significant number of the workforce equating to a further 0.25% on the pay bill.

Stemming from tough negotiations, in which the CWU fought hard, the ultimate deal reflects the huge competitive challenges currently being faced by O2 in a tough economic environment.

Assistant secretary Sally Bridge explained: "Our members have voted pragmatically to accept this offer, but O2 would be making a huge mistake if it interpreted this result as indicating that it can carry on indefinitely with below inflation awards.

"The CWU has taken on board the challenges the business faces, the difficult economic backdrop and the fact this is a company in total transformation - but O2 needs to recognise that it can only push staff goodwill so far, and will need to reflect on that before next year's pay round."

Addressing criticism of the deal that has been expressed by some members, Sally added: "Some have quite rightly pointed out that 2.5% doesn't equate to inflation - but the truth is that in today's grim economic climate it's extremely hard to secure such an outcome. That doesn't mean we shouldn't strive to get there - just as we have this time round in some extremely tough talks.

"At the end of the day, however, you have to take stock of the context in which the pay negotiations take place - and the fact is that, in the current climate, and given the challenges O2 faces, this is a reasonably decent pay award compared with what's going on in the market at the moment. It was certainly the best that could be achieved by negotiation, and represented significant movement by the company on earlier positions which were totally unacceptable to the union."

Positives of the deal, Sally stressed, include a substantial improvement in unagreed pay progression arrangements for O2 contract Tech Spec/ T&E/ Retail A10-R and Business Support grades that were unilaterally introduced by O2 last year despite CWU protests that they were wildly inadequate.
For employees on O2 contracts Tech Spec/T&E/Retail A10-R and Business Support grades with annual performance review scores of 1, 2 and 3, these payments have increased from 0.25%, 1% and 2% respectively to 1%, 2% and 3% of salary. This represents a significant reduction in the time it takes for individuals to reach the top of their pay scales...and means that this year a top performer will secure an overall salary increase of 5.5%.

The improved pay progression arrangements still does not compare increments over four years enjoyed by NewGRID contract employees earlier in their careers - and O2 has agreed to enter into new negotiations with the union with a view to reaching agreement on amended arrangements before April 2014.

Crucially, this year's pay agreement also includes a commitment from O2 to jointly conduct with the CWU a fundamental review of O2 Retail pay grades.
Sally concludes: "This is something the CWU has been seeking for some time as our members in O2 shops rank amongst the lowest paid people in the company.

"Finally, we've also secured an assurance from Telefonica O2 UK that if, in future, pay discussions go beyond the April review date, any contractual pay progression payments will be made on the due anniversary date, and not delayed as they were last year."

Watch video here http://www.cwu.org/news/archive/o2-members-accept-2.5.html