Q&A: BT IN COURT
Q.IS BT IN TROUBLE WITH THE LAW?
A.Technically BT is in the dock but it insists its position is simply a technicality and it is standing alongside the pension trustees in seeking clarification from the government.
Q.WILL BT LOSE OUT OVER THE RULING?
A.BT says its agreement to pay back the deficit – currently standing at £7.6bn – has already been agreed and the ruling should not have any immediate bearing on the firm. It has agreed to pay back £525m over the next two years, rising to £583m thereafter, with payments increasing three per cent a year until the balance is cleared.
Q.WHEN IS THE RULING EXPECTED?
A.There was no sign last night but it could be announced any day this week.
Q.WHO WILL BE THE BIGGEST WINNER?
A.If the ruling goes in favour of the pension trustees, members who signed up after the privatisation may have their pensions guaranteed.
Q.SO EVERYBODY IS HAPPY THEN, FOR NOW AT LEAST?
A.It appears so. BT also averted a walkout this month when it announced it has reached agreement with its workers’ union on a new pay package for employees.