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LONDON UNDERGROUND PAY OFFER May 2019

30 May 2019

OFFER OF AGREEMENT PREPARED FOR ASLEF, RMT, TSSA AND UNITE THE UNION 28 MAY 2019 INTRODUCTION 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 passenger demand

– We are faced with the unclear impact of Brexit

– We are adjusting to the delayed opening of Crossrail and the impact on our revenue and expenditure Inevitably this is having a significant effect on what is affordable.

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

Term: A two year deal covering 1 April 2019 to 31 March 2021

Rates of Pay: 1 April 2019: RPI1 + 0.1% 1 April 2020: RPI2 + 0.2% 1 RPI February 2019, published March 2019 2 RPI February 2020, published March 2020 2

Additional Items Raised During Pay Talks During the course of our discussions on pay and conditions of service we have debated a number of further issues which, whilst not apt for incorporation into terms of a pay deal, were important matters:

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.

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 preretirement 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.

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, e.g. 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 2029.

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