O2 and CWU agree pay deal


The ongoing pay dispute between the Communication Workers Union and O2 is to end after an agreement was reached this week

The Communication Workers Union (CWU), which represents O2 staff in non management positions, is encouraging its 4,000 members to accept an offer of a 2.5 per cent pay rise this year, with an additional 2.75 per cent next year.

The deal marks a victory for the CWU, which had set out to get staff a pay increase of five per cent orignally. O2 is also making changes to staff pay progression, which the CWU had requested.

Negotiations have been ongoing since February, when the CWU branded O2 as “hostile” after it refused to increase its initial 1.25 per cent offer. The CWU had warned industrial action was a possibility should talks break down.

If accepted, staff will see their salary increased from August 1, with all additional pay backdated from April.

An email sent from O2 HR today said: “We’ve agreed a two-year pay deal with the CWU covering 2010 and 2011. The CWU will be strongly recommending its members accept the deal in a forthcoming ballot.

“We were pleased to broaden the scope to a two year deal as this gives everyone greater stability and certainty around pay.

“Economic uncertainty still surrounds us and as a business we still face significant challenges. With clarity around pay we can now plan for whatever the economy throws at us, and make firm commitments to the investment we need to make in order to protect our share of the core mobile market and continue to grow.”