BT has revealed plans to raise the salaries of all but its highest-paid employees as an attempt to end a long-running pay row that has led to staff going on strike.
Following discussions with the Communication Workers Union (CWU) and Prospect, both unions have recommended an agreement.
From January 1, the firm announced a £1,500 pay hike for all UK employees earning £50,000 or less.
When combined with a raise in April, the overall pay rise for the lowest paid will be more than 15 percent since this time last year.
BT Group CEO Philip Jansen said: “This award is based on the principles we have followed throughout this difficult period.
“It gets help to as many of our colleagues as possible, favours our lower paid colleagues, and gives people the security of a built-in, pensionable increase to their pay.
“Crucially, it has been worked on in conjunction with the CWU.
“As I’ve said throughout, whatever our differences, our unions are vital partners.
“We will now build on this collaboration.
“We have agreed with both our union partners that we will all lean into the opportunities and challenges the future will bring, specifically our transformation plans and the delivery of the £3 billion cost savings.
“Ultimately, we all want BT Group to be successful so that we can do the best by our people and customers for years to come.”
Staff will be balloted on the offer, which the CWU said represented a salary increase ranging from 6 to 16 percent for workers of various ranks.
CWU deputy general secretary Andy Kerr said: “I wish to pay tribute to our members for coming out to strike in such serious numbers.
“Their determination has moved BT into a position where they could no longer ignore the case for a consolidated pay rise – without such unity, the company would have offered a cost-of-living bung at the very best.
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“Our members have every reason to be proud, and I hope that they have their say in the forthcoming electronic consultative ballot.”
CWU general secretary Dave Ward said: “This pay deal would not have happened without the strike action taken by thousands of BT Group workers across this summer.
“The bravery these workers displayed caught the sympathy of the country, and shocked the company out of its complacency.
“Our members should be proud of their stand, and I hope they will let their voices be heard in the forthcoming ballot.”