We can now report that further constructive negotiations have taken place, and that the union has secured an improved consolidated pay rise for more than 90% of members. We have also negotiated an additional lump sum payment for the majority of employees covered by Prospect for collective bargaining.

We are recommending that members accept the offer.

The ballot will start at midday on Friday 1 June and conclude at midday on Friday 15 June.

You can read Ericsson's final enhanced offer here (you will need to be logged in to the Prospect website). This came as a result of tough negotiations, and was made on the basis that Prospect recommends acceptance of the offer.

We have secured an improvement for the FSO Field Engineers which provides

An increase to basic pay of 2.5% for those earning less than 120%ile of their pay rangeA 2.5% equivalent unconsolidated payment for those earning more than 120%ile of their pay range

Prospect is pleased to have improved consolidated increases, given the guaranteed nature of salary, the year on year benefits and the positive effect on salary-related payments. Our view is that this is more beneficial than increases to allowances and benefits.

Prospect pressed for this offer to be extended to members working on Heritage Vodafone non-FSO contracts, ex-02 and Vodafone managers and other non-FSO Prospect bargaining groups. However the offer for those groups remains as follows

An increase to basic pay of 2.2% for those earning less than 120%ile of their pay rangeA 2.2% unconsolidated payment for those earning more than 120%ile of their pay range

In addition, for those working in the FSO unit (engineers and managers) we have achieved

An additional 1% one-off lump sum payment based on current salary.

As part of the offer future pay reviews will move to April, starting from April 2013.

These improved terms are the best that can be achieved through negotiations, and show the positive effect that Prospect has in negotiating on your behalf. Your support and high level of union membership has been critical in achieving this.

Ericsson has confirmed that all consolidated increases and related payments will be backdated to 1 January 2012.

You will receive details of the e-ballot separately. Please make sure that you vote, and in line with our recommendation that you vote to accept the offer.