After BA, British Telecom workers threaten strike

After British Airways (BA),now the UK's telecom giant British Telecom faces the prospect of industrial action after its workers threatened to go on strike if their demand for 5 per cent increase in pay is not met.

With the UK air passengers being stranded late last month after BA cancelled many flights as their cabin crew went on strike, (See: British Airways cabin crew go on strike once again) thousands of UK businesses and homes will be without basic phone or broadband services if the more than 50,000 workers at BT vote to go on strike.

The Communication Workers Union (CWU), which represents more than 50,000 BT employees have given the telecom giant until noon today to increase its offer of 2 per cent pay rise to 5 per cent.

The union is angry at the company having offered a meagre 2 per cent pay rise to its workers, while doling out larger bonuses for its executives, including a bonus of £1.2 million for chief executive Ian Livingston and a £50,000 pay rise to £900,000.

In May 2009, BT had come in for scathing criticism, when it was revealed that the company had given large bonuses to its top executives, even after the company posted a £134-million full year loss for that financial year and axed another 15,000 jobs that month. (See: BT unveils £134 million loss; axes another 15,000 jobs)

But even as the union threatened to go on strike, BT refused to negotiate a higher wage last night.