The chief executive of the UK’s biggest telecoms group said a £1,500 pay deal offered to frontline staff was “historic” and not open to negotiation as he played down the likely impact of dozens of thousands of staff on strike on Friday and Monday.
“There will be no winners in this action,” Philip Jansen, chief executive of the former monopoly, told the Financial Times, adding that the company had prepared for the strike by reducing its workload and ensuring that its contractors, of which there are 25,000, are ready to work.
Asked if he would consider increasing the pay raise offered to more than 50,000 front-line employees in April, Jansen replied: “Why would I?” noting that more than half of the staff had received what amounted to a 5% pay rise.
“It’s history. It’s already done”, he said, and added that the union should “worry about the future”, but that its door was always open to discussions. “Our people will not get paid while they are out there [striking]”, he warned.
BT staff are among millions of UK public and private sector workers who are protesting against pay cuts in real terms as they face rising inflation and a cost of living crisis. Some 40,000 BT employees will begin two days of strike action on Friday, led by the Communications Workers Union, which is pressuring the company’s management to back down on what they say is an “arrogant” and unfair pay proposal.
“I completely understand how people in the country feel given the pressure on income,” Jansen said, adding “I wish I could do more.” Staff wages account for almost a third of BT’s £13.3bn operating costs.
The CWU has pointed to the group’s rising revenue and profits as evidence it could offer higher pay to struggling frontline staff.
Dave Ward, general secretary of the union, said: “Our members kept the country connected during the pandemic. They deserve a proper pay rise, and that’s what they’re going to get.”
“This dispute lies squarely at the feet of Philip Jansen,” he added.
Jansen received a 32% pay rise to £3.5m in the last financial year, due to earlier share awards.
BT increased its sales for the first time in six years in its first quarter, according to results published on Thursday, with total revenue of £5.1bn, slightly above consensus estimates of £5bn. Adjusted earnings before interest, tax, depreciation and amortization stood at £1.9bn in the three months to June, in line with estimates, and up 2 per cent on the same period in last year.
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The telecoms group increased mobile and broadband prices well above fixed and mobile inflation, increasing prices by 9.3% from April 1, which give a significant boost to the company’s consumer division, increasing adjusted ebitda by a fifth to £625m.
Conversely, Jansen said he was “disappointed” with the performance of the company’s business division, which accounts for about a quarter of group revenue. It reported a 7% decline in revenue and a 27% drop in adjusted ebitda to £315m.
The weaker performance saw the share price fall more than 5 per cent in the early hours of the morning to 166p.