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ATW: HQ Clerical and Management grades 2014 Pay Claim

21 July 2014

Update from the 2014 Management and HQ Clerical pay talks so farÂ…..


What has happened so far

Your representatives and I are very conscious that it has been some months since you have heard any news on the progress of pay talks and we clearly need to update you on what has been happening. A lot of time has been spent trying to make clear that your feedback solidified an aspiration for a 1 year deal of 3.4%. Early on the company made very clear that they wouldn’t be prepared to offer that much for 1 year deal and that they would only be prepared to offer 2.5% if it was a 1 year deal.

In terms of a Multiyear deal we had an offer on the table of:

Year 1 = 3% (basic award of 2.75% plus 0.25 for a multi-year deal) and Year 2 = May 2015’s RPI (retail prices Index) or 3% whichever was greater.

Plus an increase in special event payments with the specialist roles increased from £200 to £210 and the non-specialist role from £150 to £160 with each future year’s payment increasing by RPI, based on the May figure for a July anniversary.

At the tail end of the last meeting we proposed that 0.4% could be taken from the second year and moved to the first year so that we could achieve our aspiration of having 3.4% for this year to bring to prevent pay erosion between the other grades. This we felt would be something that could be recommended to members despite there being no movement on items such as job protection, 100% pensionable pay or additional Annual leave days. The company proposed to take that away and respond to us.

July’s Pay meeting

In advance of the meeting on 18 July the company proposed the following:

“Year 1

  • a pay offer of 3.4% effective from the pay anniversary of 1st July 2014, comprising a basic award of 2.75% plus 0.25% for a second year agreement plus 0.4% brought forward from Year 2
  • an increase in special event payments with the specialist roles increased from £200 to £210 and the non-specialist role from £150 to £160 with each future year’s payment increasing by RPI, based on the May figure for a July anniversary

Year 2

A pay offer of RPI (based on May 2015 figure) minus 0.4%, or 2.6% whichever is the greater, effective from the pay anniversary of 1 July 2015.”

When your reps met with the company we raised concerns around accepting a pay deal that had the potential for less than RPI in the second year. We were hopeful that the second year could either be RPI or 2.6% whichever was greater without the potential for 0.4% being deducted from RPI. In the intervening period we had received and analysed accounts for ATW for the year ended 2013. We raised the fact that profit had increased by just under £16million and that the average of the 7 Directors ‘emoluments’ (another word for pay) had increased by 6.4% and the 6 lowest paid Directors had increased by 17.3%! The relevant Director advised that the Pay increase was 2.5% but we suggested that the Directors bonuses had probably been paid on top of that.

Despite this the company was not prepared to move on the issue of the RPI figure in year 2 as they were saying that the cost of moving 0.4% forward to year one would need to come off of both figures in the second year as it was technically more costly to move the figure forward a year but they hadn’t reflected this in the year 2 figures.

After an adjournment your reps tabled a counter offer of:

Year 1 = 3.2%

Year 2 = May 2015’s RPI or 2.8% which ever greater including the increase in Special events payments previously tabled.

The reason being the analysis on RPI for next year is currently showing predictions of anything from 2.3% to 4.5% and so we couldn’t accept receiving lower than RPI potentially.

Whilst the company was still not saying that they would be prepared to pay this and proposed removing the special events increases we said that we wanted them to take this back to the executive board. Unfortunately due to ATW’s annual leave commitments this isn’t likely to take place until later on in July at the earliest and we will update members once we receive some feedback on this proposal.

In the meantime you may have thoughts on what has taken place and your reps would want to hear what you have to say. Whilst we would like to resolve these talks amicably we also want to ensure that we can achieve the best deal possible and we would want to understand what members are prepared to do if we cannot achieve your aspirations.

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