CWU says "Cut bonuses not jobs at Cable & Wireless"

The Communication Workers Union today (Tuesday) is concerned by the profit warning from Cable & Wireless Worldwide (CWW).

With news expected this week of latest payments in the controversial bonus scheme for senior executives, CWU is encouraging the company to cut bonuses before jobs and act responsibly at a time when jobs are scarce.

CWU deputy general secretary Andy Kerr said: "Cable and Wireless has persisted with a controversial business plan driven by obscene bonuses for senior executives. At times of recession it is important that the company reviews this approach and takes the necessary steps to safeguard much-needed jobs.

"Any news of cutting jobs before cutting the millions of pounds paid to a handful of executives in bonuses would be fat-cat economics in the extreme. Staff have endured a turbulent time at C&W through the de-merger while Mr Pluthero and his colleagues have lined their pockets to the tune of £14 million last year alone. Staff deserve some stability for their loyalty.

"It is interesting that CWW blame the coalition government's cuts for their drop in profits. Far from creating jobs, the private sector appears to be suffering from the government's cuts."

John Pluthero earned 353 times the basic salary of CWU-represented staff, for whom the 2009 starting salary was £12,534.

Total Board remuneration (excluding incentive rewards) rose by 25 per cent between 2009 and 2010 at a time when staff received a 1 per cent pay rise.

Source: cwu.org