Over 50,000 British Telecom and Communication employees have held a 3% pay hike for the next three calendar years. The employees secured this hike, after they threatened their first national strike.

This increment will add an amount of £130 million to salary bill of BT for the next 39 months. The Company will increase its £9 billion pension black hole by £60m.

The Company had offered a 2% hike effective from April, including lump sum payments of £500 with a rise of 3%, which would be effective from January 2011. However, the employees were seeking to get a raise of 5% for engineers and call centre workers.

After the new deal, a member will receive an additional amount of £1000 in the salary package, this year.

“BT will benefit from a long period of certainty while our employees will have financial stability during uncertain economic times”, said BT Chief Executive, Ian Livingston.

He said that he was happy to solve the matter with the union.

Andy Kerr, CWU Deputy General Secretary, also expressed his pleasure that the negotiations proved to be fruitful.

British Telecom and Communication workers made a pre-tax profit of £1bn in the last financial year. The Company had to face a loss of £244 million in the year 2009.