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London Midland: Pay 2015

17 September 2015

As you will be aware negotiations for the 2015 pay settlement covering non management grades have been ongoing for a number of months. Following the rejection of the previous offers, the joint unions reconvened with London Midland management and set out the reasons for the negative response.

 

Initial discussions focused on a possible two year deal, however the company maintained this would be subject to a Department for Transport mandate that would restrict it to the RPI figure for year 2 with no guarantee of a minimum. Given the uncertainty and lack of security this would create, discussions moved onto a single year deal. After intensive and in depth negotiations, London Midland made the following full and final offer:

One Year Pay award Offer

ü 1 April 2015 – 1.5% pay increase (February 2015 RPI plus 0.5%) for all employees

ü An additional 1.0% pay increase from 01 July 2015 for those employees on salaries of under £17,000*

ü An additional 0.5% pay increase from 01 July 2015 for those employees on salaries of over £17,000 and under £40,000*

ü Dynamic Allowances to increase by 2% as at 01 April 2015

 

The RPI elements of the pay award will be fully pensionable for future and previous service. As such, increases above RPI will be forward pensionable only, as discussed with all trade unions in pensions discussions held in 2014 and 2015.

 

In addition to the above, the Company commits to also introducing the following elements as part of the pay award:

 

Cleaning Staff Attendance Bonus

The London Midland Cleaning Staff attendance bonus will be consolidated into base pay and become future pensionable with effect from 1 July 2015. As discussed the date has been brought forward from 1 January 2016 to 1 July 2015 to further improve the offer* and will be at no detriment to the individuals affected.

Family Friendly

London Midland recognise the importance of work life balance for families and is committed to supporting family friendly initiatives. The current Maternity and Paternity arrangements provide different entitlements to Ex Central and Ex Silverlink employees. The company intends to harmonise these entitlements for all employees with sufficient qualifying service to receive London Midland entitlements with effect from 1 April 2015.

 

London Midland Entitlement -

Maternity & Adoption

6 weeks at 100% average weekly earnings over 8 representative weeks. 22 weeks at 50% average weekly earnings. 11 weeks at Statutory Maternity Pay. 13 weeks at zero pay

Paternity

Entitlement of 1 days leave taken around partner's confinement. Then 1 week at 100% average weekly earnings. 1 week at 50% average weekly earnings.

 

London Midland Company Service Pass

Travel enhancements will be implemented across the whole business in due course, and we are currently working towards an implementation date of 1 December 2015 in line with the annual reissue of the Govia Staff Travel Pass.

The above offer is the best that could be achieved following extensive negotiations. The tiering of the pay offer is unusual and was a result of an attempt to improve the salary base of the lower paid. However clearly this has had a knock on detrimental effect to a significant number of our members in the higher salary bands who proportionally will receive less, though as a gross amount higher than the majority of colleagues earning below £40,000. This is likely to be divisive in how members view the overall package. Taken in its entirety the offer as a whole is good in comparison to trends within the railway industry and the wider economy.

The other unions (RMT & UNITE) have accepted the offer without recourse to a referendum, however given the nature of the proposed settlement it is necessary for TSSA to do so. Attached is a referendum paper please complete and return by Thursday 01st October 2015. If you require any further information on the pay negotiations outlined above or any other issues please email me on walshv@tssa.org.uk

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