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03/09/2001
Union brings pressure to bear on BT split
Chancellor Gordon Brown has offered the Communication Workers Union (CWU) a meeting with Department of Trade Minister Patricia Hewitt on the split of BT into BT Future and BT Wireless which is to be rebranded.
It is understood that Mr Brown has not rejected the union argument that the two must be kept as a single entity.
The CWU emphasised their view that cutting BT in two was "not a telecom business decision, but a strategy invented by the City". The union claimed that in many cases the policy was viewed with "a distinct lack of enthusiasm" by both major investors and small investors.
A spokesperson for the CWU said: "The CWU is calling for the suspension of any activity on the split of BT Future and BT Wireless until there has been a full debate and examination of the issues. Let us not forget that up to last May, BT said it was committed, for good business reasons, to keeping the company together. This was an informed business decision.
"Then the City money-markets intervened. It was they who insisted on 'divestment' as a condition of helping BT reduce its debt burden."
The union is especially concerned that it is in the Wireless (mobile) area that there will be massive growth in the future, not only for telephones, but also with downloading data to lap tops. Yet this is what BT is considering selling.
BT Chairman Sir Christopher Bland said that the arguments for keeping Wireless were as strong as those for selling it, and promised to "look again" at the situation. (GB)
It is understood that Mr Brown has not rejected the union argument that the two must be kept as a single entity.
The CWU emphasised their view that cutting BT in two was "not a telecom business decision, but a strategy invented by the City". The union claimed that in many cases the policy was viewed with "a distinct lack of enthusiasm" by both major investors and small investors.
A spokesperson for the CWU said: "The CWU is calling for the suspension of any activity on the split of BT Future and BT Wireless until there has been a full debate and examination of the issues. Let us not forget that up to last May, BT said it was committed, for good business reasons, to keeping the company together. This was an informed business decision.
"Then the City money-markets intervened. It was they who insisted on 'divestment' as a condition of helping BT reduce its debt burden."
The union is especially concerned that it is in the Wireless (mobile) area that there will be massive growth in the future, not only for telephones, but also with downloading data to lap tops. Yet this is what BT is considering selling.
BT Chairman Sir Christopher Bland said that the arguments for keeping Wireless were as strong as those for selling it, and promised to "look again" at the situation. (GB)
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