BT has announced plans for a pay rise to all but its highest paid staff, in a move aimed at resolving a long-running dispute which has led to strikes.
Discussions with the Communication Workers Union (CWU) and Prospect have led to both unions recommending agreement.
The company said it will give a £1,500 pay rise for all UK workers who currently earn £50,000 or less from 1 January.
The increase covers all frontline staff and half of managers in the UK.
Combined with an increase made in April, the total pay rise for the lowest paid will be over 15% since this time last year.
BT Group chief executive Philip Jansen said: “This award is based on the principles we have followed throughout this difficult period.
“It gets help to as many of our colleagues as possible, favours our lower paid colleagues, and gives people the security of a built-in, pensionable increase to their pay.
“Crucially, it has been worked on in conjunction with the CWU. As I’ve said throughout, whatever our differences, our unions are vital partners.
“We have agreed with both our union partners that we will all lean into the opportunities and challenges the future will bring, specifically our transformation plans and the delivery of the £3bn cost savings.
“Ultimately, we all want BT Group to be successful so that we can do the best by our people and customers for years to come.”
Workers will be balloted on the offer, which the CWU said represented a pay rise ranging from 6% to 16% for workers of different grades.
CWU deputy general secretary Andy Kerr said: “I wish to pay tribute to our members for coming out to strike in such serious numbers.
“Their determination has moved BT into a position where they could no longer ignore the case for a consolidated pay rise – without such unity, the company would have offered a cost-of-living bung at the very best.”
CWU general secretary Dave Ward said: “This pay deal would not have happened without the strike action taken by thousands of BT Group workersacross this summer.
“Our members should be proud of their stand, and I hope they will let their voices be heard in the forthcoming ballot.”
Don't miss the latest headlines with our twice-daily newsletter - sign up here for free.
