Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Employee relationsLatest NewsEconomics, government & businessPay settlements

Mobile phone giant fails to reach agreement with union over pay

by Mike Berry 14 Jul 2005
by Mike Berry 14 Jul 2005

Mobile phone giant O2 faces a summer of discontent following the collapse of pay talks with the Communications Workers Union (CWU).

The CWU is now recommending its members reject this year’s pay offer in a consultative exercise which is due to start next week.

If, as the CWU expects, members reject the offer and O2 remains unprepared to improve the terms, the union will ballot for industrial action.

CWU deputy general secretary Jeannie Drake, said: “Half the workforce is being told that they will not receive a consolidated salary increase for around seven years – and the other half that their automatic rights to progress to the maximum level in any salary band through yearly incremental rises are to be taken away and replaced with an unacceptable performance-based formula.”

According to the union, since O2 was spun off from BT in November 2001, the earnings potential of CWU members has fallen by 10% and that of new employees by 35%. During the same period, the pay of O2 chief executive officer Peter Erskine has risen by 76%, and that of other board members by similar amounts.

“Our members have done a first-class job in taking O2 to the top of the mobile league, and to record pre-tax profits of £1.7bn,” said  Drake.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

“The O2 board is rewarding them by saying that increases in the cost of living and company profitability will no longer be factors in the annual pay round and that staff no longer have an automatic right to reach the pay rate for their job.”

In an earlier statement, O2 said: “Pay-for-performance is not about saving personnel costs – our current proposals actually create a bigger total pay pool than a single across-the-board rise.”

Mike Berry

previous post
Volkswagen’s HR director resigns over corruption allegations
next post
Confidence belies reality on roll-out of NHS pay system

You may also like

Young people unprepared for world of work, says...

8 Jul 2025

Empower and engage for the future: A revolution...

7 Jul 2025

Bereavement leave to extend to miscarriages before 24...

7 Jul 2025

One in seven ‘revenge quit’ in latest employee...

7 Jul 2025

Skills shortfall in construction threatens housing target

4 Jul 2025

Company director wins £15k after being told to...

4 Jul 2025

MPs demand Home Office tightens visas to protect...

4 Jul 2025

It’s all about the Monet: how art transforms...

3 Jul 2025

Stop chasing quick fixes: return to the office...

3 Jul 2025

Asda hails major upgrade in employees’ benefits

3 Jul 2025

  • Empowering working parents and productivity during the summer holidays SPONSORED | Businesses play a...Read more
  • AI is here. Your workforce should be ready. SPONSORED | From content creation...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+