BT faces strike vote while Tesco agrees new pay deal

BT is facing the possibility of industrial action after its new pay offer was rejected by the Communication Workers Union.

BT announced today that it would give its frontline UK workers a £1,500 pay increase - the telecoms giant's biggest pay increase for two decades.

The company said the pay rise is being given to 58,000 workers, including engineers, contact centre staff and retail staff, adding that it would be "focused on the lowest-paid workers" and would work out as an increase of roughly 8% for some employees.

The highest-paid frontline workers would see an increase of more than 3% as a result of the change.

But the CWU said shortly afterwards: "The CWU has rejected the pay offer from BT.

"We have no choice now but to immediately prepare for a statutory industrial action ballot.

"We will be sending further communications to members via email and social media later today."

'Biggest pay award in 20 years'

Earlier, BT's chief executive Philip Jansen said: "I'm pleased that we've been able to make this pay award - the biggest in 20 years - to thank our colleagues and recognise their hard work."

Last year, the company also paid frontline workers a £1,000 cash payment as well as £500 worth of shares.

Meanwhile, Tesco has announced it will give store and fulfilment workers a 5.8% pay increase in a settlement which will be reviewed again next year.

The agreement, which comes into effect from 24 July, will take workers' hourly pay to £10.10 from the previous rate of £9.55.

The hourly rate for delivery drivers and assistant will rise to £11.

'Well-deserved pay rise'

Jason Tarry, Tesco UK and Ireland chief executive, said: "We are delighted to have reached an agreement with USDAW that recognises the vital role our colleagues play in our business now and in the future, giving them a well-deserved pay rise, more access to extra hours and setting out a long-term commitment and investment in their careers at Tesco."

The pay offers from Tesco and BT come as British businesses face staff shortages and workers face the rising cost of living - energy bills and inflation especially.

Tesco said its pay deal would be for one year, rather than two, given the "uncertainty in the economic environment".

Daniel Adams, Usdaw (Union of Shop, Distributive and Allied Workers) national officer, said: "At such a difficult time, Usdaw is pleased to have secured a pay deal that not only delivers the highest hourly rate of pay in the sector but also delivers on the union's New Deal for Workers campaign, giving our members the right to request a "normal hours" contract and ensuring a minimum 16-hour contract going forward.

"The pay deal is testament to the hard work of Usdaw members within Tesco throughout the last 12 months and the commitment and dedication of our reps who were involved in negotiating the deal."