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Balfour Beatty Rail Plant & Renewals: 2013 Pay Update

20 December 2012

TSSA has listened to feedback from our members and there was consensus in the Rail Renewals to accept the offer of 2.5% pay award. However, that was not the view of our Plant members and TSSA went back to management to discuss the offer made to Rail Plant.

TSSA raised the issue of the allowances and it was confirmed that the increase would apply to all allowances that are deducted off the actual salary, the bonus for example, but would not affect an allowance such as the Per Diem. TSSA also raised the fact that this had not been increased for some time. Management stated, however, that they were paying the income tax on this amount and as such had increased the net figure if tax was deducted off the £25. I am aware that this is a contentious issue owing to the fact that when the Rail Grinders were with SERCO they did not pay any income tax on Per Diem.

However, TSSA has a forthcoming meeting with Balfour Beatty to go through the interpretation of terms and conditions and the way they are being applied.

Balfour Beatty stressed that they as a company had issued a profits’ warning to the press, and that although they had a good order book, the margins from their client are tight. They also pointed to the fact that they believed it was unlikely there would be any other pay rises in Balfour Beatty as a whole for next year, except Balfour Beatty Rail - a good example of trade union involvement and bargaining.

Balfour Beatty were adamant that they will not increase their offer, and as such we are putting out a referendum of members to give a view on what way forward you wish to proceed. If the vote is to reject the offer then members do have to decide if they are prepared to take industrial action, if we are to be able to get Balfour Beatty to change their decision.

TSSA understands this offer is below the aspirations of our members, but if the offer is rejected, to take this issue further we would need substantial support of our members to take action.

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