The claim for the payment of the first phase of 3% increase under Toward 2016 with effect from 1st November 2006 has been agreed at the Joint Conciliation Council.

As this is a new national programme, the parties to the agreement, namely the Company and the Unions, wish to affirm their support for the general principles outlined in Towards 2016.

    The Towards 2016 Agreement provides acceptance that:

• the rapid pace of change in the business environment demands ongoing adaptation and the parties are committed to full co-operation with normal ongoing change and the need for continued adaptation  and flexibility to maintain and improve competitiveness and to increase productivity and employment
• the implementation of the agreement at enterprise level will take full account of the implications for competitiveness and employment and the need for flexibility and change compatible with modern organisation, design, efficiency and business processes.
• There will be no cost increasing claims for improvements in pay or conditions of employment all parties agree to promotion of industrial harmony and that strikes or other forms of industrial action   are precluded

 The National Agreement also provides that, with regard to the specific increases in pay, that due regard is to be had to the economic, commercial and employment circumstances of the firm, employment or industry. The need for co-operation with normal ongoing change and for continued adaptation and flexibility may include necessary measures to sustain competitiveness and employment.

• The Company felt it was important to emphasise to the Unions that it expected staff to be fully aware of the business pressures it faced in an increasingly competitive and regulated market.
• The business continues to be under significant revenue and cost pressure
• The ESOT is now a joint owner of the business (with Babcock and Browne since August 2006) with a 35% shareholding, and therefore have a requirement to ensure that shareholder value is not eroded.
• The pay outcomes of T2016 are significantly higher than expectations and the impact is compounded in the current financial year due to the combination of a back loaded SP (2.5% 1 May 2006) and a front loaded T2016 (3% 1 November 2006)
• Improvements in the level of investment and service, demanded by the customer and in response to competitors, remains a key and challenging focus for the company
• There is a critical requirement to control costs in the fixed line business.

The dates for payment of same will be notified  as soon as possible.