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Collective bargainingLatest NewsPay & benefitsTrade unionsPay settlements

Virgin Media O2 pay deal agreed with union

by Ashleigh Webber 30 May 2023
by Ashleigh Webber 30 May 2023 Image: Ascannio / Shutterstock.com
Image: Ascannio / Shutterstock.com

Union members at Virgin Media O2 have accepted a pay deal that will see some staff receive a pay rise of up to 10% this year, plus a £400 cash lump sum.

Members of the Communication Workers Union (CWU) voted by nearly nine to one in favour of the deal, which delivers a  consolidated pay rise for all employees on CWU-represented grades, as well as a one-off lump sum. Some 86.5% of members participating in the ballot accepted the deal.

All eligible employees will receive the 2% consolidated increase to basic salaries Virgin Media O2 proposed last year, which will be applied from 1 August 2023.

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On top of this, full-time staff earning £50,000 or less will also see a further £1,500 applied to their base salary. This will be pro-rated for part-time employees.

Staff on some grades will receive an additional 0.5% consolidated increase to their basic salary if they are at or below the middle of the pay range for their grade. This will be applied before the £1,500 consolidated increase.

A £400 non-consolidated payment will be applied in June, to cover back pay for the period between 1 April and 31 July 2023. This will not be pro-rated for part-time employees.

Taking both consolidated and non-consolidated elements into consideration, the settlement is worth more than 10% this year for employees in O2 stores, said the CWU.

Those on higher salaries in the recognised bargaining unit will receive a consolidated settlement of 6.2%, plus the £400 lump sum.

CWU national officer Tracey Fussey said: “From the outset of negotiations, the national team was 100% focused on the need to secure a meaningful rise across the entire CWU-represented grade range that reflects the fact that, while inflation is predicted to fall sharply later this year, the cost of living crisis is anything but over.

“We’re therefore very pleased that the scale of the ‘yes’ vote shows members share our view that this year’s settlement will go a long way to restoring the value of base salaries before the next pay review date – while simultaneously addressing the immediate cost of living challenges that we know our members are facing.

“This is undoubtedly at the top end of pay settlements across the whole of British industry at present, and for that our members in Virgin Media O2 have every reason to be proud of their rock solid rejection of the two year settlement the company tried to impose last year.”

Other elements of the Virgin Media O2 pay deal include a 2% increase for shift and on-call allowances, as well as a commitment to reviewing pay progression prioer to the 2024 salary review.

The union does not have any members at Virgin Media O2 earning a salary in excess of £50,000, but said these employees would receive 2% and at least a £500 lump sum.

A Virgin Media O2 spokesperson said: “Following constructive dialogue with our unions and employee representation groups, we are pleased to have reached agreement on our 2023 pay deal which includes a base increase and a one-off payment of £400 for employees.

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“This package, which was recommended by the CWU and all employee representation groups, is on top of the targeted cost-of-living payment of £1,400 we introduced last year to employees earning £35,000 and under, which is being paid until the summer.”

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Ashleigh Webber

Ashleigh is a former editor of OHW+ and former HR and wellbeing editor at Personnel Today. Ashleigh's areas of interest include employee health and wellbeing, equality and inclusion and skills development. She has hosted many webinars for Personnel Today, on topics including employee retention, financial wellbeing and menopause support.

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