Corporates fear BT strike action

Businesses are holding their breath as the Communication Workers Union (CWU) considers strike action that would hit corporate communications across the UK.

"The phone lines are the main worry," said Abby Ewen, IT manager at Withers solicitors. "If BT engineers went on strike, and we were hit by a problem, it would be unknown territory for us."

Ewen explained that there were contingency plans at the switching level but that telephony lines were a different matter. "Getting one set of lines from BT was difficult enough," she said.

The union has tried to persuade BT to retain mm02, believing it would be "insane" to split the fixed and wireless divisions. It argues that mm02's £6bn valuation, and the relatively low level of debt the spin-off will carry, makes it a prime target for hostile takeovers.

Bill McClory, assistant secretary at the CWU, maintained that the demerger decision would go down to the wire. "We know that some pension fund trustees have instructed their investment managers to vote against the demerger," he said, declining to say how many.

McClory added that it would be "premature" to discuss strike action. "We are anxious to ensure a proper debate without the threat of action," he said.

The union has 80,000 members at BT, the majority in engineering. McClory expected full backing for a strike motion should it be put. "Our members think this is a jump off a cliff. They don't know who their employer will be in three months because, with a debt of just half a million, buying it will be a snip," he said.

At the time of going to press, the union said a final decision on industrial action would be taken once the results of yesterday's EGM on whether to demerge, are known.

A lengthy dispute could seriously damage BT's business, and it is uncertain whether the union sees this as in the long-term interests of all its members.