EXCLUSIVE: BBC boss Matt Brittin has revealed that unions have rejected an improved employee pay offer, increasing the likelihood of a mass staff walkout at the British broadcaster.

In an internal town hall briefing, Brittin said the BBC had revised its pay increase offer from 1% to 2.1%, but this was dismissed by unions, including the National Union of Journalists.

“That was disappointing,” Brittin said. “I understand the cost of living and the pressures that people are under, but [I’m] just disappointed because people want clarity and we want to be able to give the pay rise.”

The BBC director general said the pay talks had been a “pretty difficult process for everyone” and he acknowledged that industrial action was a possibility.

Brittin said low earners would benefit most from the remuneration offer (some employees will get a 2.5% raise), while members of the BBC’s top leadership team will not receive a pay rise.

He added that the BBC was making the offer in the context of cutting costs by £500 million ($675 million), while at the same time having no certainty over its future funding amid charter renewal talks with the government.

Brittin said a 1% pay rise was equivalent to 180 jobs. “That’s where we’re in a tight situation on savings. How do we get the right balance between helping people progress with the cost of living, but also managing the size and shape of the BBC for the future.”

BBC News presenter Adam Fleming, who was hosting the staff Q&A with Brittin, asked: “Do you think that people who want a bigger pay rise are putting their colleagues’ jobs at risk?”

Brittin responded: “I understand completely why people want to be paid in a world of cost of living increases and so on. But yeah, that’s the choice that you have to make at a management level. To award more, you’re going to have to find the money from elsewhere. The cupboard is bare. There isn’t a cash reserve that we can draw on here. So that’s the kind of trade-off that we’re having to look at.”

The former Google executive, who earns £565,000 running the BBC, said talks with unions would continue. He added that some union leaders were in favor of approving the 2.1% offer, but “different people have got different opinions.”

Brittin said more details on BBC cuts would be announced in the coming weeks. The corporation’s £500M target expands on a previous savings goal worth £1.5 billion. The bigger picture behind the cuts is that 94% of the UK population use the BBC every month, but fewer than 80% pay the £180 annual licence fee. The BBC is attempting to bridge this gap.

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