BT staff ask for clarity on splits

Unions representing the workforce at telecoms giant BT have reacted cautiously to the company's plans to split itself into several separate businesses, parts of which may be floated on the stock exchange.

Jeannie Drake, deputy general secretary of the CWU, said: "The company's announcement poses a real challenge for the union but we do want to secure the long-term employment future of our members". She said the company would need the co-operation of its staff and their representatives if it is to be successful.

The union for BT professional and managerial grades, Connect, immediately identified a number of issues on which it wanted "clarity". These include how the pension scheme would operate within the re-organised BT group, who the employer would be in future and how contracts of employment with different operating companies might "interact". It was also concerned about company-wide procedures for promotion, movement and career development, as well as pay and grading structures, and employee share ownership.

The proposed new structure is not expected "of itself" to increase pressure for further cuts, Connect said. But job losses have become a way of life in BT. A target of 3,000 for reduction in management has already been exceeded and the company predicts more will go this year.