Vodafone UK Backtracks on Staff Bonuses

Angry Vodafone staff are reported to have forced a management climb down over the cancelled annual bonuses - which will now be reinstated. In March, the company announced that its UK staff salaries would be frozen this year, and that bonuses would be cancelled. However, while hit by write-downs, Vodafone still managed to report a significant profit of £4.1 billion.

In a memo sent to staff, and seen by the Independent newspaper, Vodafone UK's chief executive Guy Laurence wrote: "Over the past few months I've seen some changes in our company which are really good signs. Having discussed this at length with my management team we feel it is important to recognise the work that went into last year. Therefore we have decided to make a one-off bonus payment of 2% of your average basic salary."

A Vodafone employee told the newspaper: "Staff morale plummeted when management said it was scrapping bonuses in March. Common sense has prevailed because although profits were down they still came in at more than £4bn for the year."

The bonuses will be paid later this month.

On the web: Independent

Posted to the site on 1st June 2009