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Amey: 2014 Pay Talks

29 January 2014

Update on collective bargaining Pay talks and productivity working parties.

 

Working Parties

As stated in our last circular we have met twice with the Company to discuss potential productivity savings. The first meeting was related to potential rostering savings for S&C and Plain Line within the Operations Rail side of the business. The second related to the CEFA contract within Consulting Rail where negotiations centred on the potential use of Handhelds and Standardisation or Harmonisation of Terms and Conditions. Whilst both meetings seemed productive it was recognised that there wouldn’t be the opportunity to resolve those discussions in advance of the Pay Anniversary Date of 1 March 2014.

Pay Talks - 28 January 2014

The company tabled a revised offer spanning 2 years, based on Retail Prices Index (RPI) rather than the consumer prices index (CPI) which they previously tabled. They clarified that they would rather base the offer on an average of RPI over a 3 month period potentially January to March and that they would be prepared to offer RPI+0.5% for both years. In the second year they wanted to cater for potential fluctuations in RPI and suggested that if RPI was either 2 % above or below the amount paid in Year 1 then we would need to come back around the table for negotiations.

Essentially the revised offer would look something like this –

Year 1 – RPI (based on an average of January-March 2014’s RPI) + 0.5%

Year 2 – RPI (based on an average of January-March 2015’s RPI) + 0.5% Unless RPI was +/- 2% from Year 1’s figure in which case negotiations for year 2 would restart

TSSA Response and Counter Offer

Whilst we were happy that Amey has finally accepted the principal of basing pay offers on RPI we spelled out our concerns that in the last 4 years staff have essentially had a decrease in pay compared to inflation by 7.4% (see table1 below) equally we had concerns about averaging RPI over 3 months.

Date/Year

Amey Pay rise %

*Relevant RPI %

Pay Erosion

April 2010

1%

3.7% (Feb)

-2.7%

January 2011

1%

   

April 2011

1.5% (Tot = 2.5%)

5.5% (Feb)

-3%

March 2012

3%

3.9% (Jan)

-0.9%

March 2013

2.5%

3.3% (Jan)

-0.8%

Total

9%

16.4%

-7.4%

*is the latest published RPI figure at the time of the pay anniversary date

We were also concerned that that there needed to be a good will gesture due to the lack of tangible movement on allowances and proposed that all allowances be uplifted by the overall pay increase.

Your TSSA Representatives raised concerns that those promoted were often told that they wouldn’t receive the collectively bargained pay rise sometimes for more than a year. We made clear that the pay rise should be paid to everyone within the collectively bargained group regardless of their individual circumstances otherwise they were potentially opening up further pay inequalities which may attract Equal Pay Claims in the future.

We reminded the company that with plans to grow the consulting business to 5000 staff (from 3500) by 2018 and Amey being Network Rails second largest provider there was clear need to recognise the hard efforts of staff to retain as many as possible especially in light of Control Period 5.

As a result we proposed a counter offer which we felt would alleviate concerns that our members would have on accepting a Multi-Year Deal:

Year 1 = RPI + 1.5% (RPI based on an average of RPI over the whole of 2013)

Year 2 = RPI + 1% (RPI based on an average of RPI over the whole of 2014) with a minimum payment of 2.5% - preventing the need to come back around the table to negotiate in the second year

With the following assurances:

· everyone in collective bargaining would receive the pay rise

· all allowances to be uplifted in line with the pay offer

· that talks would still continue on the productivity savings

The company Representative was not in a position to respond at this meeting and we expect a response by no later than 7 February 2014.

Encourage your Colleagues to Join the TSSA to have a voice

We will keep you updated with the progress of the talks however only union members will have the final say as to whether we accept any tabled offer or not so please encourage non-members to join online at:

www.tssa.org.uk/join

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