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Whilst it is accepted that, as in many organisations, cuts in funding will have an impact on staff, it is believed by both the joint unions and management that a continuous pattern of annual settlements which represent a real cut in pay are neither desirable nor sustainable.  A great deal is expected from people in the BBC and whilst no one is immune from the impact of the reduced funding, employees must be paid fairly.
Ensuring that our people are rewarded fairly for the remainder of the licence fee period will be dependent on a variety of factors - some of which are unknown at this time - the impact of the economy on household (and Licence Fee) growth, inflation levels, commercial income, the achievement of identified savings, potential risks around the pension deficits, etc.  Both management and unions will endeavour to ensure that a fair level of remuneration is integral to the BBC's future plans.
Both sides have accepted that there will be no movement from the current offer of 1% this year, but the BBC is committed to ensuring that pay settlements during this licence fee period go some way to reflect the cost of living, as far as these factors allow.
In addition to this joint undertaking, management and the joint unions have agreed to the following key principles, for the duration of the Licence Fee period as a minimum, in a joint effort to work through the challenges together:
Approach to pay negotiations
The pay & grading review
Performance Ratings
Redeployment
BBC Press Office