Ericsson members urged to reject ‘insulting’ pay offer
Telecoms & Financial Services, Ericsson July 16 2018
Members in Ericsson are being urged to reject a “paltry and insulting” pay offer that would result in eight out of ten employees receiving nothing at all.
The consultative electronic ballot, which opened last Wednesday and runs until Wednesday August 1, follows the dramatic breakdown of pay talks between the company, the CWU and Prospect.
Members of both unions are being asked if they reject the Ericsson’s ‘final’ offer and, if so, whether they would be prepared to take industrial action to force the company back to the negotiating table.
Since the April 1 pay review date, four meetings have been held with the Swedish-owned company’s UK management – with both the CWU and Prospect insisting that members deserve a cost of living-plus rise to make up for several years of below inflation pay settlements.
The negotiations, however, have ended in deadlock – and, the stakes were raised further earlier this week when Ericsson Ltd issues a management briefing to employees accusing their elected representatives of not understanding the challenges the company is facing.
CWU assistant secretary Allan Eldred has branded that suggestion “both predictable and insulting, pointing out: “It also dodges the fact that Ericsson UK Ltd, of which the Field Service Organisation is the largest part, continues to make a profit.”
Under the company’s current offer:
- Those earning more than 5 per cent above the industry benchmark for their role (£31,908 in the case of CWU-represented field engineers) will receive no increase at all, not even an unconsolidated lump sum.
- Even though the overall increase amounts to 0.5 per cent of the current payroll costs, more than 80% will receive no increase at all.
A small group of employees – fewer than 20 per cent of the field service operatives earning less than the benchmark – could receive an increase of between 2 per cent and 6 per cent, with those earning less receiving more. However, these awards are performance-related.
Allan explains: “While there is, at face value, a fairness in pay increases being skewed towards the lower paid, what Ericsson is effectively saying is that you have to be underpaid for the job you do to qualify for a pay rise at all.
“What an extraordinary message to be sending out to loyal employees who, year in and year out, deliver profits for the company! You’d like to hope that Ericsson’s management would recognise that their present stance is beyond irony…but apparently not!
“Despite its protestions, Ericsson UK has consistently posted decent results and the latest figures confirm this still to be the case. It can clearly afford to pay more more – and all staff deserve a pay rise, not just a tiny proportion.”
Urging members to heed the unions’ recommendation and vote ‘yes’ to both questions on the ballot paper, Allan added: “Both the CWU and Prospect believe this is an insulting offer that disrespects those who are directly responsible for Ericsson UK’s profitability.
“We believe that a clear rejection of the company’s paltry offer and an expression of members’ willingness in principle to take industrial action in pursuit of a fair pay settlement would significantly strengthen our hand in any further negotiations.
“No-one wants to take industrial action – and it’s important to stress that this ballot does not, in itself, authorise such action – and neither do CWU members want to disrupt services to the public. Management, however has regrettably placed us in a position where we have no choice but to reject this insulting and totally inadequate offer.”