Qinetiq pay plan averts strike threat

Qinetiq has shelved a pay freeze for staff that would have not hit its directors, heading off the prospect of key defence programmes being disrupted by a walk-out.



Talks between the defence technology firm and its biggest trade union reportedly ended with an agreed framework for a formal pay review to begin in October.



The review, timed just before Qinetiq's half-year update in November, will reflect the firm's performance and the outlook for its UK business, Prospect told 2,000 members.



The union's declaration in an email, seen by the Sunday Times, confirms the company has ditched its plans to freeze salaries for its rank-and-file employees.



The paper said Qinetiq chief executive Graham Love signalled the retreat last month, when, as staff were being balloted, he said the firm would reconsider its position.



Although the review puts pay rises on the table, staff expectations are low, partly as spending by the government on defence and technology research is facing cuts.