BT Ballot On Strike Action Canceled - Union

By Marietta Cauchi and Lilly Vitorovich Of DOW JONES NEWSWIRES LONDON (Dow Jones)--The U.K. Communications Workers Union said Monday that it had canceled its ballot for strike action at BT Group PLC (BT.A.LN) on legal advice and that it would take up the offer by the telecommunications company for talks while planning to re-ballot if necessary. The strike, which would have been the first in BT's 23-year history, centers on the CWU's demand for a 5% pay rise this year for its 55,000 BT call center, engineering and retailer workers. BT is offering a 2% pay raise this year and a 3% raise in 2011, plus additional one-off payments and guarantees on job security. Prospect, BT's second-biggest union with 30,000 members, mainly managers, has already agreed to a 2% pay rise this year. "We're bitterly disappointed that this ballot has had to be canceled. It's devastating for our members and for trade union rights in the U.K. and of course it doesn't help to resolve the outstanding issues over pay which we have with BT," said Andy Kerr, CWU deputy general secretary. The CWU said it had received an offer from BT on Monday to meet for further negotiations and that it "will take up that offer whilst taking all necessary steps to allow a re-ballot as soon as practically possible if negotiations are unsuccessful." The dispute over pay comes after BT Chief Executive Officer Ian Livingston's bonus payments more than tripled, taking his total remuneration to more than GBP2 million in fiscal 2010 as he presided over a recovery in the company's financial performance. According to BT's 2010 annual report, Livingston's bonus payments rose to GBP1.2 million in fiscal 2010 from GBP343,000 the previous year, taking his total remuneration to GBP2.1 million from GBP1.2 million. Livingston accepted a 2% increase on his base salary of GBP850,000. -By Marietta Cauchi and Lilly Vitorovich, Dow Jones Newswires; +44 207 842 9241; marietta.cauchi@dowjones.com (END) Dow Jones Newswires July 05, 2010 12:49 ET (16:49 GMT)