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Bands 1-4 Pay: Company Increase Offer, but Who Will see the Extra?

31 May 2012

Your management council reps met Network Rail to further discuss the pay award due on 1 July 2012. Your reps indicated again that the company’s initial offer was not acceptable.

 Click here to see the article on the previous offer.

After some discussion NR made a further offer as outlined below:

Pay

A salary pot of 3% to be distributed as follows:

Outstanding

3% - 8%

Exceeded

2.75% – 6%

Good

2.5% - 4%

PIR

0% - 1%

SPIR

0%

 

If any percentage rise takes an individual over their band maximum then the element over the band maximum would be paid as an unconsolidated lump sum.

Differentials

NR committed to looking at the erosion of band 4 managers’ rates relative to staff they manage  after the implementation of this year’s pay. The commitment NR have given is:

In addition, and separate from the pay budget, the Company will identify any band 4 people managers whose base pay is less than 15 percent above the pay of the people whom they manage. Subject to certain qualifying conditions and exceptions, these band 4 managers will be given an additional pay award which addresses this differential. The manager must be in a genuine line management role (typically managing not less than four staff); have received a performance rating of at least “good”; and with direct reports whose salary is artificially high due to personal band or retained previous salary; or where the manager is a recently appointed graduate.”

Other Elements of the Claim

Travel Subsidies – The Company are offering an increase to the cap on the travel subsidy by £50 to £2300.

Flexible Working – NR are prepared to extend the right to request flexible working, eg. compressed hours, home working, flexible start and finish times, to all staff from 1 October 2012.

Childcare Assistance – NR have committed to a review of the requirements of childcare by the end of 2012, “with a view to improving the available support and assistance.”

Network Rail indicated that they were prepared to discuss issues such as long hours, unpaid overtime and other equality and diversity policies at other working groups but were not prepared to make any statement of commitment or formal offer.

The Company indicated that this was their final offer.

Your Reps Response!

RPI now stands at 3.5%. This year the bands 5-8 and equivalent staff got a pay rise of 5.2%. Your reps’ view at the meeting was that the pay pot was not sufficient and in no way reflected how managers’ pay has fallen behind.

Frustratingly, after lengthy discussions about how to increase the transparency of the pay award, NR have increased the potential range for each performance rating. The Company have not addressed the obvious unfairness of those on the same rating being given a pay rise up to 5% different from their peers with no justification.

The Company have also failed to address the issue that higher bands are receiving proportionally higher performance ratings. This results in the pay pot being disproportionally awarded to bands 1 and 2 rather than evenly distributed.

Whilst NR’s commitment to review some differentials is positive, the detail is vague and will allow for unfairness in application. We will be seeking further clarification and will communicate this to you when we have it. It will also then undoubtedly cause further problems with differentials elsewhere in the pay structure which NR continue to cause with their below cost of living pay rises!

It is clear that NR have not taken the failings of the current pay system on board and do not feel they need to give their management grades the same reward as the rest of the staff!

What Next?

You will be asked to give your view on the offer in an online referendum to be published soon.

Your reps will also be organising meetings in workplaces and asking for your detailed views in person.

Your area reps will then meet again on 19 June to decide on a formal response to NR.

Make sure your views are heard!

 

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