BT Group Extends Olive Branch To UK Union

18th Jun 2010 11:25

LONDON (Dow Jones)--BT Group PLC (BT.A.LN) Friday extended an olive branch to its biggest union by calling on the Communication Workers Union, which represents around half of its 128,000 staff, to resume talks after a union official said it may compromise on a pay deal. The U.K. telecommunications firm said it's surprised to hear through the media that the CWU are willing to compromise on their 5% pay increase demand for this year. At no stage have they formally put forward an alternative proposal. "Given this, we call on the union to postpone the ballot and return to formal discussions with the company. Industrial action is unnecessary and would only benefit our competitors so we look forward to any new proposal from the union", BT said in a brief statement. A CWU spokeswoman said it's prepared to meet BT if there's an improved offer on the table. She confirmed that ballot papers were sent Friday to the 55,000 BT workers it represents as expected, asking them to vote in favor of industrial action over a pay dispute. If staff vote in favor of a strike, it would be the first at the telecommunications company in 23 years. The ballot, which will be run by Electoral Reform Services, will close July 5. The CWU is demanding a 5% pay rise this year. BT is offering a 2% pay increase this year followed by a 3% rise in 2011, plus additional one-off payments and guarantees on job security. Prospect, BT's second-biggest union with 30,000 members, mainly managers, has already agreed to a 2% pay rise. -By Lilly Vitorovich, Dow Jones Newswires; 44-0-207 842 9290; [email protected] (END) Dow Jones Newswires June 18, 2010 06:25 ET (10:25 GMT)