New Year’s cheer for Telefonica Retail staff as plug is pulled on failing bonus structure

Telecoms & Financial Services, Telefonica UK


Members in Telefonica Retail have received a 10% increase in their base pay following the successful conclusion of constructive discussions with the company in which both management and the CWU agreed that the previous system of target-driven bonuses simply wasn’t working for either the business or employees.

The New Year’s salary hike, which came into effect on January 1, sees the ‘standard’ pay point for staff in directly managed O2 stores increase from £18.705 to £20,576, and the ‘accredited’ equivalent rise from £21,043 to £23,147.

Responding positively to union concerns that the former ‘performance related’ bonus system wasn’t producing fair and consistent outcomes – with fewer and fewer individuals being rewarded in recent times – the company stresses  the new reward structure is focussed on supporting a “sales and service” culture that delivers the “very  best customer experience on the high street”

That has been warmly welcomed by employees. In a consultative ballot arranged by the CWU before Christmas, in which the union’s Telefonica National Team strongly recommended acceptance of management’s proposal of base salaries rising by a tenth, no fewer than 94% of those casting a vote agreed with the new approach.

Thanking members for their overwhelming endorsement of the union working in partnership with management to achieve a mutually beneficial outcome, CWU national officer Tracey Fussey explains: “The CWU has always believed that excellent customer service is best supported by a decent base pay, and we’re delighted that the business has listened so constructively our concerns over the former bonus structure.

“This change gives individuals a better base rate salary which we, as a team, warmly welcome.”