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Ericsson's UK Managed Services Staff Accept Union Negotiated Pay Deal

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Ericsson's UK employees working on a managed services contract for the O2 network have accepted a 2.5 percent pay increase, backdated to last April.

The agreement was negotiated by the Communication Workers Union, which also negotiated changes to terms and conditions across Ericsson's Field Services Organisation.

Union members have voted to accept the deal.

Last summer, Ericsson advised the CWU that any pay increases would be limited to 1.1 per cent on the overall pay budget and that any increase would be restricted to certain 'eligible' groups.

The union says that this would have resulted in just 30 people throughout the UK receiving a pay rise.

Ericsson's Field Service organisation is largely formed from groups of engineers that have been Tuped into Ericsson as a result of mobile operators outsourcing their field services to Ericsson. Thus, each contract came with engineers that had terms and conditions from their former employers. The changes that have taken place have standardised T&Cs across the field organisation.

These changes see base hours of staff on the O2 contract increase from 36 to a now-standard 37.5, compensated at 1.5 times the base hourly rate i.e. the overtime rate. Annual leave has also been standardised at 28 days, with any decrease compensated by consolidated increases in base salary and the ability to 'buy back' the leave at no cost to the individual.

Members working on the ex-Orange contract have seen £2,600 of their shift allowance consolidated into base pay. This will now be used in overtime and pension calculations, while at the same time individuals will receive what is now the standard shift payment of £3,000 per annum, for working a four-week shift cycle from 07.00 to 19.00 Monday to Friday.

Allowances and overtime rates have also been standardised and, where appropriate, adjusted favourably.

Orange UK senior managers' bonuses are to be reduced but the union has negotiated a one-off payment based on their previous two years' performance achievements.

Summing up the changes, CWU Assistant Secretary Allan Eldred said: "While the effects of the standardisation of terms and conditions will vary from member to member and from contract to contract, the union's negotiating team believes that no member will be worse off and, for the vast majority, these changes represent a significant improvement."

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Tags: ericsson  communications workers union  UK