Telecoms company, BT has settled on with its main union on a new 3% yearly pay pact to run for 39 months, which has been done, so as to avert the threat of a mass strike and boosting its shares after months of public internal strife.

The Commercial Workers Union (CWU) called the deal as amongst the highest pay resolutions carried out so far in the nation.

BT and the CWU had been at loggerheads for months after the union demanded for a 5% pay increase for this year and charged the company for applying double standards in the manner it treated those at working at high posts in the company and those working at lower levels.

BT, which asked 35,000 staff workers in the last two years to walk out, had at first offered a 2% increase and a one-off payment for the no less than 50,000 CWU members, prompting the union to launch the initial ballot for industrial act at the company in more than two decades.

That was brought to a stop on Monday over fears that the firm would launch a lawful challenge.

This accord is good for BT, its workers, shareholders and customers, Chief Executive, Ian Livingston said in a report.