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Tough talking at O2

11th March 2010

Should O2 fail to substantially budge its position in ongoing pay talks with the union, the company will be heading down the slippery slope towards confrontation - the CWU's lead O2 negotiator has warned.

With a package initially branded by the company as its "final offer" unanimously rejected by the union's negotiating team - assistant secretary Ian Cuthbert insists that O2 should be under no illusion that its continued refusal to move from an effective pay cut for CWU-represented grades will trigger a "totally unnecessary" industrial relations crisis.

The package currently on the table would represent a rise of just 1.5 per cent for most customer service advisers, and a paltry 1.25 per cent for the vast majority of other employees - at a time when the company is performing well and inflation (RPI) is running at 3.7 per cent and rising.

Furthermore, at the last pay meeting the company refused to even discuss introducing an element of pay progression in to the parts of the company where it currently doesn't exist - notably including the shops - despite indications given in previous years' pay talks that this may be addressed.

Ian said: "I've written to O2 in the strongest possible terms, urging them to see sense and come back to the negotiating table, which fortunately they have now done."

The next meeting will talk place next Friday (March 19), at which the union is expecting a revised offer to be made.

Ian concludes: "O2 is continuing to perform extremely well, despite the recession, with its revenue and profitability up and new products, including the iPhone, proving a big success - so the company can well afford a reasonable pay settlement for our people.

"The idea that in these circumstances our members would accept an effective pay cut is preposterous - so my message to the company is clear: Your workforce is your most valuable asset - and you won't motivate people by offering them less than inflation.

"Unless O2 move in some meaningful way then frankly they are moving towards a dispute."