O2 Retail Staff Expected to Receive Pay Rise

It has been reported that staff who work in O2’s retail outlets will receive a 14% pay rise after a deal was agreed with the union. However, the deal is still subject to approval from O2 retail staff representatives. It was finalised at the end of May between the company and the Communication Workers Union.

The agreement will affect all 1,900 of O2’s non-management retail staff across the 290 direct stores. It will see them earn a maximum of £19,800 a year including bonuses. Staff in O2’s concession stores will be unaffected by this change.

The pay rise means that new starters will receive a basic annual salary of £14,500 rising to £16,000 upon completion of a three month probation period. Staff are then able to progress to a finale pay grade of £18,000 a year subject to a couple of qualifying factors which have not been reported. Exemptions will be put in place for staff who earn more than £18,000 at the moment through a combination of base pay and bonuses.

The deal is not all positive as it does result in a drop of quarterly bonuses available to staff. The previous pay model allowed employees to earn between 20 to 25 per cent of their annual salary by achieving and exceeding specific sales targets.

The other compromise of the deal is that Sunday ‘premium pay’ has been abolished, as well as the £400 payments for staff who work in out-of-town locations such as retail parks. It is said that the compromises are based on reducing the need for performance based pay, in order to ensure staff take home a higher guaranteed wage each month.

The final approval vote by CWU will take place by a ballot on the 16th of June. If successful, the new rates will be in place by July 1st.

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