BT has reached a three-year deal worth 9.3% with the Communication Workers Union (CWU) bringing an end to a lengthy dispute over pay.
The deal will see employees receive a 3% increase to base pay, which will be fully pensionable and cover pay-related allowances, each financial year from April 2010 to March 2013 with the rise being backdated to January 2010.
Andy Kerr, deputy general secretary of the CWU, said: "Following a very difficult set of negotiations and the first national ballot for strike action in BT since 1987 we are delighted to have resolved this pay dispute through talks.
"This is a fantastic deal for our members providing a fair rise in their basic pay this year and for the following two years. This deal is among the highest pay settlements in the country this year recognising the contribution of staff and BT's success over the last year."
In May almost 60,000 union members voted unanimously to hold a strike ballot after being offered a 2% pay rise. The offer, which the union wanted increased to 5%, came at a time when BT posted a 6% increase in profits to £5.78 billion in 2009-10. This ballot was later cancelled following legal advice.
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