Changes to Sales and Bonus

Library

Changes to Sales and Bonus Transfer Allowance and Step-Down payments

In that email we reported that BT was proposing to halve the value of STA payments and to reduce the value of Step-Down Payments very greatly. This would only affect those moving to a role with a lower On Target Bonus - and this does not happen very often - but it is nevertheless true that the existence of the STA and Step-Down arrangements provide a valuable parachute for those facing a potentially very serious and immediate loss of income.

Whilst these STA and Step-Down arrangements are primarily designed to protect the interests of those on a sales-type bonus, STA payments are a contractual protection for anyone in the Reward Framework who moves to a lower OTB, sales or not. As such, the advice in this email applies to ALL in the RF.

The company is determined to press ahead and make the changes unilaterally and without our agreement. We have not been able to convince BT that making the proposed changes to these long-standing arrangements is wrong and unfair.

BT has confirmed its final position on this issue and you can read the company's letter and the union's reply on the right hand side of this page. You will see from this exchange that BT is proposing to introduce the changes in stages:

• The current arrangements will continue until 31 August 2011. Anyone moving to a role with a lower OTB, or moving into the BTTC from a sales role, until then will be covered by the existing terms.

• From 1 September and until 31 March 2012, BT proposes that there will be interim but still reduced STA and Step-Down Payments. Anyone moving to a role with lower OTB, or into the BTTC from a sales role between these dates would be covered by these interim arrangements.

• From 1 April 2012 the full reduction would apply. These would have the effect of halving the value of the STA payments, and reducing the Step-Down payments from 3 months at full bonus and three months at half bonus, to just one month at full bonus.

The current arrangements are contractual; they form part of your contract of employment. BT cannot lawfully make unilateral changes to your contract of employment. However, in order to protect yourself against these changes, there is an important step that you MUST TAKE IMMEDIATELY.