(Sharecast News) - UK telecoms group BT has told staff it could offer extra financial support for those hit hardest by the cost of living crisis as it frees up cash thanks to the government's energy subsidy for businesses.
Chief executive Philip Jansen said he would be able to table a new proposal to the Communication Workers Union (CWU), which represents about 40,000 of the company's 100,000 employees, to end talks over a pay deal that has seen the two sides at loggerheads for months and the first national strike action in 35 years.
Jansen said the government's move to cap business energy bills, which runs until the end of March, would give it the financial flexibility to consider improving staff pay.
However, last week BT warned of further job cuts after in response to the need for more than £500m in extra savings due to soaring inflation and energy bills. The company's energy bill will be £200m higher year on year.
"Now that we know that the extra energy costs are capped at £200m until end of March - I didn't know that in April - I know we will do something," Janso told staff on a video call, according to Bloomberg.
"It will be targeted at those who need it the most."
Jansen previously maintained that rising inflation, now at a 40-year high, and surging energy costs fuelled by Russia's invasion of Ukraine meant the telecoms giant could not afford to up its pay offer.
Reporting by Frank Prenesti for Sharecast.com
BT (BT.A)