Ericsson members urged to accept ‘final’ pay offer that delivers inflation-plus for most

Telecoms & Financial Services, Ericsson April 12 2021

Monday 12th April 2021 

Pay negotiations with Ericsson have yielded a ‘full and final’ offer that, if accepted,  will see the majority of members in Field Service Operations (FSO) receive fully consolidated increases ranging from 2% to 3.5%.

The proposed settlement, which was thrashed out in detailed talks that commenced in February, is “strongly recommended” for acceptance by the union’s Ericsson National Team in a consultative ballot that opens today (Monday).

Details of the offer – which is both performance-related and dependent on where individuals sit on their pay scale – can be viewed in Ericsson Members’ Bulletin No.75/2021. In essence, however, only those already paid more than 120% of their salary range, or those on the lowest performance ranking, will receive less than 2%. There are only a handful of employees are in this  so-called ‘limited’ performance category, and they will receive no consolidated rise at all. The union will be initiating discussions with management on improved coaching for people in this group.

CWU national officer for Ericsson, Allan Eldred, explains:  “The union’s main focus throughout the negotiations was to secure an offer above the rate of inflation for those below the 120th percentile and to get at least a degree of consolidation for those above it. Both of these objectives have been met.

“It should be noted that, due to efforts in previous years to focus higher increases on those below 80% of the market medium, there’s no longer anybody in this category.  In line with this, colleagues will note that the higher increases are still rightly concentrated on those on the lower pay levels.”

The deal on the table applies to all members in Ericsson’s FSO apart from those who entered the company via the Field Operative career path – and those who’ve been promoted to Lead Engineer or have taken up a Field Manager role since January of this year. Field Operative pay will be discussed separately with the company and it is anticipated that those talks will commence shortly.

Allan concludes: “For the majority of those in FSO the offer we have secured represents a well-deserved real-term increase when viewed against the current RPI inflation rate of 1.4%. While, unfortunately, we were unable to secure a full cost-of living increase for those already paid above the 120th percentile, we have at least budged Ericsson from its policy in previous pay awards for people on or above the 120th percentile who would only receive an unconsolidated lump sum.

“After forceful CWU representations on this front, Ericsson has agreed to consolidate £250 of the increase for those above the 120th percentile, with any part of the increase above £250 being paid as a single lump sum.

“The National Team strongly believes that that the deal out to ballot is the best that could be achieved by negotiation – and we commend it to members accordingly.”

Electronic voting ‘papers’ were despatched to eligible members this morning, and the e-ballot will run until midday on Monday April 26. Assuming the deal is ratified by members, Ericsson anticipates the increases being applied in May salaries.