No. 273/2005 Ref: WMcC/cld/BT

TO ALL BRANCHES WITH MEMBERS EMPLOYED BY BT PLC

Dear Colleague

RETIREMENT AGE - BT

The Company has now written to the CWU and Connect to confirm that in anticipation of the legislative changes on the 1st October 2006, BT will offer the opportunity to those approaching age 60 to remain in employment with BT, subject to certain conditions. The Company has confirmed that it wishes to "align the aspirations of the individual and that of the business".

In essence, commencing in July of this year, BT has agreed where an employee is 59 years expresses a desire to remain in BT employment, the Company will make every effort to affect this. To ensure that resourcing opportunities remain for people in this category, BT will displace agency staff and, where necessary, cease any relevant recruitment. The Company will also make available a number of flexible working options which will include the opportunity to move to part-time working or to less demanding work.

Although the policy change is from July 2005, BT has also agreed that it will consider appeals from those due to leave BT`s employment on reaching age 60 during June.

Each individual, following their 59th birthday, will be offered a minuted discussion with an "appropriate independent manager e.g. Resource Lead or HR Business Partner, to ascertain their desires". The Company has also indicated however that in areas where there is a reducing resource requirement, it will not be able to offer the opportunity to remain in employment and BT intends to put in place an appeals process where an individual has expressed a desire to remain in employment, but has not met the Company's criteria.

At this stage the Company statement raises a number of questions. There has been no discussion with the CWU on the issue of the Company's "criteria", nor has there been any discussion about the nature and structure of any appeals process. Similarly, it is not entirely clear how long an individual would be able to work beyond age of 60. The reference to "reducing resource requirement" is also problematic. These and other issues will be pursued with Company as a matter of urgency.

Although some elements of the Company's decision require urgent clarification, it is nonetheless an important step forward towards achieving the Union's policy. It is clear from the emerging results of the Union's retirement age survey that a large proportion of members would welcome the opportunity to work, on a voluntary basis, beyond age 60. The Union will make every effort to ensure that those who do wish to take advantage of this change in BT policy will be able to do so and the Union will provide the necessary support to achieve this.

Branches will know that there is a timetabled presentation by the T&FSE at TIC Conference on Tuesday 14th June on the survey results and the TIC will, in light of the Company`s letter, submit an emergency proposition for debate.

Further advice will be given to branches in due course but in the meantime it is essential that branches make every effort to ensure that members aged 59 and above are advised of this important change in BT's policy and are given the opportunity to express their preference in line with the arrangements indicated in the Company's letter. Co-operation of branches in making this LTB and the attachment as widely available to members as possible, would be greatly appreciated.

Yours sincerely

W McClory
Assistant Secretary