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                        21^st August 2009

Dear Colleagues

Pay 2009

As you will be aware from previous bulletins, we have been continuing to discuss with management this year’s pay review in the face of Virgin Media having announced a pay freeze without any consultation with the CWU.

It is clear from our discussions that the company are unwilling to change that stance for this year, however they accept that there is a need to demonstrate that was a position that they believe was the right one for this year but not necessarily going forward.

As a result, we will be starting discussions around next year’s pay review around November this year. We have also been discussing Reach with the company and as previously reported there have been some now visible improvements to that scheme and we hope that the continuing discussions on Reach will continue to see improvements.

This issue has been discussed with your reps committee which meets quarterly and sends its reps to the quarterly negotiations with the company. I know members will be disappointed with the outcome of this year’s review especially set against the pension’s issue which will end up costing many of our members more money. We will be strongly pressing this point when we come to the pay discussions at the end of the year as we have been in the Reach discussions as well.