Update on Consultations and Negotiations with O2

Update on Consultations and Negotiations with O2

Please find below an update on consultations and negotiations with O2 regarding re-organisation, annual pay review and pensions.

The reorganisation continues apace. With Phase 1 more or less concluded we are pleased to report that the joint efforts of O2 and the union have so far ensured there has been no need for compulsory redundancy. There has been some really good work undertaken all round, but in particular in the very difficult Retail environment to avoid compulsory redundancy. Thanks to Prospect representatives and to the HR and operational teams involved. Phase 2 is now under way and we are hopeful that the results from phase 1 can be repeated. Any members affected who are feeling vulnerable and need support should contact our help desk on 020 8971 6070.

Alongside this are a variety of separate reorganisations concerning the IT and Technology environments. We are awaiting proposals from the Company regarding who will populate Telefonica Group Technology (TGT) and the terms and conditions under which any transfer will take place. There are other reorganisations being considered within Cornerstone and Project One amongst others.

Annual pay review
We are still discussing with O2 the review of pay arrangements as a way of settling this year's pay review. O2 is currently not prepared to increase its offer to the union however it is recognising that the review is important and without commitment, that Prospect has made a powerful case for a thorough review of its pay arrangements. We expect to write to you with the outcome of this stage of our negotiations very soon.

The implementation date for the changes to Sections 2 and 3 of the pensions scheme has been delayed until 1 July 2011 to ensure that employees affected are given adequate time to go to presentations, clinics and take financial advice.

In our pensions negotiations O2 committed that it would not use any future TUPE projects for the purposes of making changes to the membership of (sections 2 and 3 of ) the pension plan. In the current TUPE discussions the Company has agreed to mirror nothing less than than Option 3 for transfers regardless of the pension option chosen by members.

Encourage your colleagues who are not members to join the union
The union is working hard with the company during a period of deep organisational transformation. We are determined to ensure that all members are supported, protected and where possible see opportunities for career development and enhancement. Please encourage your colleagues who are not members to join. The greater our membership the greater our influence and ability to protect you and enhance your terms and conditions.