Society of Telecom Executives
1997 MPG Pay Claim

On Monday 4th November, STE General Secretary, Simon Petch sent the following letter to BT, setting out the STE's pay claim for 1997:

Dear Mr Griffiths MPG PAY 1997 I am writing to you to set out the STE's claim for 1997 MPG pay. Our claim aims to set standards for an MPG pay system which would support the company's commitment to a proper Performance Management system, build on the principles for a new structure agreed in 1995, provide a minimum standard for acceptable rewards and deliver tangible recognition for MPG people of their stake in the company's success. The company has made positive steps in the area of performance management and career development. However it is clear from our surveys that many of these steps have been undermined by the company's approach to pay in recent years. It was this that we sought to address in the post-implementation review this year. It is because the company subsequently failed to meet the expectations raised in making that agreement that we are seeking to build in minimum standards from the start next year. Therefore, for the 1997 MPG Pay Review the STE claim is that the company should: negotiate and agree a minimum, consolidated increase to everyone in the MPG equivalent to the March 1997 rate of inflation, plus negotiate and agree a 4.5% consolidated paybill increase to reward MPGs for their contribution to BT's continued success, plus negotiate and agree a system for progression which ensures that MPG people reach the midpoint of the range after four years and the three quarter point after seven years. Overwhelming evidence from our members has shown that despite the existence of a performance-related pay scheme, in practice the company's approach to pay in recent years has failed to deliver real rewards for that performance. The evidence also shows that MPG people have no confidence that the approaches used to determine their pay have operated in a fair or consistent manner. That confidence can only be achieved through a clear, open and honest pay system operated in a demonstrably fair and consistent manner. Therefore a transparent pay system is a key element of our claim. We also need to negotiate and agree increases to the pay ranges and pay-related allowances. Given the extent to which the reduction in the MPG2 minimum has created substantial interface problems, we believe it will be necessary to increase the minima by a higher percentage than the maxima. We look forward to an early start to negotiations. Yours sincerely Simon Petch, General Secretary

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Page last updated 2 June 1997.

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