BBC pay settled at 2.8%

An annual pay rise of 2.8% across the BBC has been implemented after BECTU members voted to accept the Corporation's offer in a ballot which produced a 60/40 result.

The union had presented the offer neutrally, acknowledging that the rise matched inflation when it was made, but they declined to give a positive recommendation because it fell short of the 3% necessary to keep up with inflation expected later in the year. Union fears of rising inflation were confirmed when the July Retail Price Index rose to 3.3%.

The unions welcomed some of the non-pay items that were conceded by the BBC during the negotiations, particularly the promise to offer staff on fixed-term contracts permanent jobs after five years. Provided they can rely on one more year of guaranteed work, fixed-term staff everywhere except the language sections of the World Service can expect to be offered a permanent contract.

The proposals followed several years of lobbying by the unions on behalf of thousands of staff who have worked for long periods on successions of fixed-term contracts. Progress was also made during the pay talks on the right of all staff to be told their "fully competent rate", an issue dating back to the introduction of the current grading system in 1994 when automatic increments were scrapped, to be replaced by "growth in job" payment. Although the unions believed they had secured a commitment from the BBC that staff would be told what final salary they would reach after achieving full competence, many areas of the Corporation had, since 1994, given the information only to new staff, and in some cases had refused to tell even them.

The BBC rejected the union demand that the 0.5% of the salary bill destined for performance pay awards should be used to improve the 2.8% general increase, and continued their stance of the last ten years by turning down a claim that Unpredictability Allowances should be consolidated for pension purposes. Management were criticised harshly by unions for once again freezing the floors of the 12 new pay bands, opening the way for new staff pay rates to be reduced in real terms.

Annual pay talks in BBC Worldwide Ltd, which conducts pay talks separately from the rest of the BBC, ended with a rise of 2.8%, which was accepted by members in the department.