The BBC tabled its final pay offer for the coming financial year to the joint unions this afternoon - and it is well below the current rate of inflation.

Last month RPI [Retail Price Index] inflation was 5.2%. The BBC is offering a 2% increase to all staff earning under £60,302, which is equivalent to the Grade 10 ceiling. Staff earning less than £20,000 will get a minimum increase of £400.

In an all-staff email Lucy Adams, director of Business Operations, said: 'We are facing a very difficult financial position...across the economy as a whole pay inflation is running below RPI and we need to demonstrate value for money to licence fee payers. In that context our pay award must be affordable and realistic.'

The Unions had asked for all staff in bands 2-11 to have a pay increase 'substantially above inflation', pointing out that pay awards for the last two years have been low, and salary capped; that staff expect workloads to increase because of cost cutting and that the cost of living is rising.

In the letter setting out the claim BECTU general secretary Gerry Morrissey said: 'A below inflation pay award is completely unacceptable.'

The joint unions will now consult members and aim to issue ballot forms on the pay offer next week, without recommendation.

Gerry Morrissey, BECTU general secretary, told Ariel: 'It's disappointing that BBC staff may have to endure a third year of below inflation pay, but the joint unions have decided to issue a neutral ballot because the big issue here is what's going to happen in coming months.

The BBC initially asked for a two year deal and we refused because there are so many unknowns at the moment.

'Feedback from members is that the bigger picture concerns the degree of job security they have, and what volumes of work they will be asked to undertake. That information won't be known until the summer or early autumn.'

From Ariel:-
http://www.bbc.co.uk/ariel/13549998