Staff concern at O2 pay increase


A number of Telefónica O2 UK staff have criticised the company over its 1.25 per cent pay budget increase for 2010, which they claim will affect pay rises.

O2 staff in managerial positions in customer service and retail departments were informed via email last week. O2 staff holding non-managerial positions are expected to be informed of their increase in pay later this month.

Pay increases are based on staff members’ annual performance review scores.

O2 negotiated the offer of a 1.25 per cent increase of pay budget with trade union Connect, which advised O2 managerial staff to accept the offer as part of an online ballot at the end of the month.

O2 will negotiate the same package for non-managerial staff with the Communication Workers Union this month.

A number of O2 staff have suggested the original offer to managerial will be rejected at the ballot, and that more union negotiations are likely. Any pay rise is expected to be in place by March 1.

O2 led the UK market in 2009, posting increase in customer numbers, revenue and profits in each quarter to the end of Q3. Its full-year financial results are due shortly. In addition, it has launched a number of new revenue channels: Mobile Landline (now suspended), Joined Up and Joggler. It is expected to launch a new business broadband offer in the coming months.

However, O2 has warned staff it needs to “set a pay budget that takes account of our business challenges”.

An O2 spokesperson said: “It is now subject to a ballot, and union negotiators have made a strong recommendation that members vote to accept it.”


O2 has said the ballot was returned on Friday (January 28) in favour of the pay offer.