A BT spokesman, said: "BT can confirm that, after careful consideration, there will be no pay rises as a result of this year's review of salaries. This will apply to all UK employees, including BT's most senior executives. The company has informed its employees and unions.
"This has not been an easy decision but, given the tough economic climate, it is important BT meets these challenging times head on.
"Our unions have always been pragmatic in recognising the challenges that face BT and so we hope they will support our efforts to ensure BT remains a healthy and sustainable company for many years to come".
Yesterday car manufacturer Toyota announced it would be freezing pay and reducing hours. Commenting on the rising number of employers resorting to similar methods, Jon Terry, partner and head of reward at PricewaterhouseCoopers, said: "The message is clear: businesses in all sectors must consider different ways to reward and deploy their staff to minimise the long-term impact of this downturn, as well as take action in the short term.
"It is important for companies to focus on ensuring that the right pay and reward structures are in place when costs are being cut and incentive pools are down, to keep top performers motivated and focused. Companies need to eliminate ‘wasted' incentives and find smarter ways to appraise, reward and engage their staff to best position themselves through the downturn."
BT announces pay freeze for all UK staff to help company through the downturn
Staff at BT will have their pay frozen for the rest of the year because of the worsening economic conditions.
