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London Underground Pay Offer

3 April 2019

London Underground has today made a pay offer in response to our claim. Our General Secretary, Manuel Cortes, who attended today's talks as part of our negotiating team, made it very clear to Tube bosses that their offer falls well-short of our members aspirations. Sadly, a dispute looks all but inevitable. Our reps meet on Monday to discuss our next steps. Please let them know what you think.

The full offer is as follows:

Offer of Agreement Pay and Conditions of Service 2019 Prepared for ASLEF, RMT, TSSA & Unite the Union 3 April 2019 Our negotiations on Pay and Conditions of Service 2019 have taken place in a challenging financial context:

We are adjusting to the loss of our Government general grant, from £600m per annum at the time of the last pay talks, to nothing today

We are contending with lower than expected However, we continue to recognise that the people who make up London Underground are key to our success

We want to make an Offer to maintain our position as an employer of choice and to continue to provide competitive pay and conditions of service

We appreciate that our staff have already helped us to make a number of positive changes across London Underground and will continue to do so as we meet our business challenges

The Offer

This offer is made on the basis that the following items are dropped from your claims:

• Claim for a minimum flat rate for the lowest paid • Claim for a minimum increase of £3000 / £1600 – Our approach in this Offer is a flat percentage rate across all grades; a minimum increase of £3000 / £1600 would be unaffordable • Claim for an additional pay increase for train driving grades, above that of other LU employees – We want to be fair and consistent in this Offer. Our train operators’ total reward package remains amongst the best in the industry

• All claims for increases/changes in Boxing Day payments and allowances; and claims for increases in first aid payments and SPIC/ Protection Master Payments: – Our Offer needs to be affordable overall and these payments remain competitive (Continued on following slide) This offer is made on the basis that the following items are removed from your claims at these talks (cont):

• Claim to a paid meal break – We believe it’s important that employees have the opportunity to have a break away from their duties where their time is their own. This time therefore remains unpaid

• Claim to increase maternity and paternity pay – Our policies in these areas already place us amongst the UK’s leading employers

• All claims to introduce a 32-hour week – We identified this would cost c.£190m per annum and require an additional 2,700 employees. This is not affordable.

• All claims for increases to annual leave entitlement – Our people already have 37 days leave a year (inclusive of public holidays), which is highly competitive and amongst the best in the UK Term

• A one year deal from 1 April 2019 to 31 March 2020 Basic salary

• 1 April 2019 • 2.5% consolidated increase for all grades (RPI February 2019, published in March 2019)

• To be paid through the first available payroll following acceptance of this offer Our offer on Pay and Conditions of Service 2019:

Work/ Life Balance

• We reaffirm that, in principle, we have no objection to staff across the organisation working a compressed working week, or any working pattern, as long as it is safe and mutually beneficial

• As established in the 2015 Pay and Conditions of Service Agreement, each functional council will continue to determine whether or not it takes up the opportunity to explore such changes. Functional councils may consider, for example: – Pro-rata working arrangements – Changes to rostering, which enhance work/ life balance and are fatigue friendly

• Oversight will be retained by the LU Company Council Pay and Conditions of Service 2019 We also discussed a number of other items during these talks Improving diversity and inclusion

• We’re committed to making LU a more diverse and inclusive workplace which represents the city we serve. In every part of our organisation, we want all of our people to feel welcome and valued.

• Our Diversity and Inclusion team is working on a number of D&I priorities to develop a more diverse workforce, drive more diversity within our leadership team and create a more inclusive culture within London Underground.

• We are keen to collaborate with trade unions on this important work and have established a new D&I trade union engagement forum, where we will engage on D&I strategy, identify areas where partnership working could be developed and encourage the exchange of ideas.

• Forums are scheduled for: 16 April; 28 May; 9 July; 20 August; 24 September; 5 November Family friendly policies

• We’re very proud of the way we support our people with caring responsibilities, and helping our people achieve a better work life balance. In many cases, what we offer exceeds statutory requirements and is better than many equivalent industry-standard policies.

• Specific policies that recognise and support the caring requirements of our people include:

• Flexible working arrangements – where our people can apply to change their working hours or patterns of work to meet family, caring or other similar responsibilities.

• Family leave - a suite of leave options available to employees beyond their annual leave entitlement for a variety of reasons relating to family and domestic commitments, including maternity leave, paternity leave, adoption leave, parental leave, time off for dependants, death or illness of a near relative, funeral leave, moving house and domestic leave.

• Special leave – where employees may apply for special leave for activities such as performing public duties, attending judicial proceedings, taking time off for further study or making preparations for imminent retirement.

• Career breaks – where employees can apply to take an unpaid break in service, or period of unpaid special leave in order to: meet primary childcare responsibilities; be the prime carer for an elderly and/or seriously ill person, normally a relation; pursue a course of full-time study; or deal with family affairs or undertake an extended period of travelling, normally abroad. Recognising and supporting neurodiverse employees

• We recognise that a number of our people are dyslexic and/or dispraxic and their hidden disabilities can have an impact on their roles. We share the desire of the unions to recognise the challenges faced by our people with neurodiverse conditions.

• We will work with the unions in the trade union diversity and inclusion engagement forum, and other appropriate forums. Medical Assistance Programme

• The medical assistance programme (MAP) is a discretionary scheme operated by our Occupational Health team. It can provide early intervention in sickness management by funding investigations or treatment (or both), which can help people return to work more quickly.

• We have committed to extending eligibility for MAP to all LU employees, following existing scheme conditions. Support for our people approaching retirement

• London Underground provides support for our people in the lead up to their retirement. Those aged 55 years or over and with 20 years’ total service will be eligible for five days pre-retirement leave in their final year of service – and three days for those with less than 20 years’ service.

• We offer people the opportunity to attend pre-retirement seminars to help them prepare for life after work

• In the year of retirement, full annual leave entitlement is granted.

• We contribute £300 towards a leaving event for each employee retiring at the age of 55 or over who has at least five years’ service. Recognising Long Service

• Our Long Service Awards comprise discretionary payments of £250 for 25 years and £500 for 40 years.

• We also host long service award dinners for our people who achieve these milestones. Discretionary staff travel benefits

• There are two discretionary staff travel benefit schemes in place for London Underground employees. One for employees who joined the organisation before 1996, and one for those who joined after.

• While they are clearly different, we are confident they are broadly comparable in value. In reality, the value of the benefit to any individual employee will be dependent on their own personal circumstances.

• Having investigated this, it’s not possible for staff who joined before 1996 to opt for the post 1996 scheme, or vice versa.

• We have, in the last five years, approached TOCs with a view to creating reciprocal staff travel arrangements. Where TOCs believed that reciprocal arrangements were of benefit to them, we have been able to establish agreements, eg LNER and GTR.

• Thames Clipper services operate under a licence, part of that licence agreement is to offer discounted fares for Travelcard holders, which includes staff Oyster cards. These arrangements continue until last until 2029. CSA2

• The structure of our organisation and the grades we have are not matters for pay talks.

• On the subject of the CSA2 grade in stations, it is worth noting that in 2016, LU and trade unions jointly committed to the introduction of a new operating model in Stations on 7 Feb 2016 which included the CSA2 grade (see dispute resolution dated 21 January 2016).

• As part of this agreement, staff received a £500 launch payment for introduction of the new station operating model.


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