BT And Unions To Warn Staff Of Brexit Risk

BT Group (LSE: BT-A.L - news) and the trade unions representing tens of thousands of its workers will take the unusual step this week of issuing a joint statement supporting the UK's continued membership of the European Union.

Sky News has learnt that the FTSE-100 telecoms company will circulate a memo on Monday to more than 81,000 British-based employees warning of the economic risks of Brexit.

The statement will be signed by Sir Mike Rake, BT's chairman, and Gavin Patterson, its chief executive - both of whom have previously argued in favour of EU membership.

However, sources said it would also be signed by Andy Kerr, deputy general secretary of the Communications Workers Union, and Ben Marshall, national secretary for the comms, media and digital sector at Prospect.

Insiders said that the memo would not seek to direct BT's staff how to vote in next week's referendum, but would highlight a number of areas of concern.

One source said BT will warn that Brexit would have a detrimental impact on the UK economy and on companies operating within it, including the telecoms group - and that a downturn could take several years to recover from.

It (Other OTC: ITGL - news) will also claim, they said, that the majority of businesses of all sizes believe the UK is better off remaining in the EU, and that investment and economic activity have been undermined by uncertainty about the outcome of the June 23 poll.

The communication is also expected to highlight warnings that the value of sterling would be affected by Brexit, with consequential implications for the cost of consumer goods and imports.

Among those receiving the memo will be nearly 13,000 employees of EE, the mobile phone operator acquired recently by BT.

The source said it would defend the EU's role as a facilitator of exports by reducing import taxes and other trade barriers when the company sells services across EU member states and beyond.

Roughly 20% of BT's revenues being generated outside Britain, and the company is expected to highlight its view that the terms of non-EU trade would be difficult for the UK to negotiate on a standalone basis.

The memo is also likely to say that EU membership makes travel across the EU easier for staff at BT's Global Services division, and that leaving the EU could jeopardise that.

Additionally, it will warn that the EU has helped to protect workers' rights across the Continent - a claim which Leave campaigners are likely to challenge.

The joint (NasdaqCM: JYNT - news) memo from BT's management and unions will come just ten days before voters go to the polls, amid renewed arguments from the Prime Minister that Brexit would threaten pensions and other protected areas of public spending.

While president of the CBI, the employers' group, Sir Mike argued that business leaders should "turn up the volume" and warn publicly about the risks of leaving the EU.

He has also donated thousands of pounds to Britain Stronger in Europe, and argued in his capacity as the new chair of the International Chambers of Commerce that Brexit would cause economic damage well beyond UK borders.

BT declined to comment on Sunday.