BT Group: Talks With Union On Pay Raises Collapse

9th Jun 2010 20:26

DOW JONES NEWSWIRES BT Group PLC (BT, BT.A.LN) sa/id talks with its biggest union over pay demands have collapsed, removing another hurdle in front of a vote to strike. BT said the Communication Workers Union, which represents more than 50,000 BT workers, made no shift in their rejection of the company's latest offer made Monday. The company said that offer included a 2% pay raise this year and a 3% pay raise in 2011, plus additional one-off payments and guarantees on job security. The CWU is demanding a 5% pay increase this year. A BT spokesman said the company is "astonished" the union rejected the improved offer, saying it is "considerably more generous" than those the union accepted elsewhere. He called the union's pay-raise demand "out of line with the current market." Tuesday, the CWU vowed to press ahead with balloting members on industrial action, saying it was disappointed that the revised offer contains "no material improvement." BT American depositary shares were trading up 2.4% at $18.76. They have risen about 20% in the last year, better than the broader U.S. market. -By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; [email protected] (END) Dow Jones Newswires June 09, 2010 15:26 ET (19:26 GMT)