Britain's BT to make cost-of-living pay rise

LONDON (Reuters) - BT said on Monday it would give all but its highest paid staff in Britain a special pay rise reflecting the rising cost of living, a move that has been backed by two unions and could lead to an end to strike action at the telecoms group.

BT said in a statement that all colleagues who earn 50,000 pounds ($60,260) or less would get a 1,500 pounds pay rise from Jan. 1 - a consolidated salary increase and not a one-off payment.

It said the Communication Workers Union (CWU) and Prospect unions would recommend that members vote in favour of the offer and in the case of the larger CWU union, this would bring an end to industrial action if members agree.

($1 = 0.8297 pounds)

(Reporting by Kate Holton, Editing by Kylie MacLellan)