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Network Rail Bands 1-4 members reject pay offer

17 June 2016

Following the 2016 Pay referendum which closed on 14th June, TSSA members have given us a mandate not to accept the company pay offer.

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The detailed results of this referendum, as well as feedback through your Representatives were discussed at a meeting on 16th June with TSSA Area Reps to reach a decision on how we are to take this forward.

It was agreed that whilst significant improvements were made through our negotiations, this vote to reject the offer means that we will be withholding acceptance with a view to negotiating improvements to the deal.

You fed back that the key issues were the capping of pay ranges, which provides little incentive for good performers as well as concerns over a lack of clarity on the changes to location allowances and pensions.

What’s next?

We have a further meeting on 27th June to discuss the pay offer with the company and will be taking forward this clear mandate from you, to seek the following improvements before reconsidering our position:

· Establish clarity on the intention to review SE as well as London Inner and Outer allowances in locations that do not attract the allowance. We will seek to protect the existing value of those who currently receive SE allowance beyond three years.

· To again seek an increase to band & pay range limits in line with the percentage pay pot. Seeking a commitment that these will not be frozen in future years.

· Notwithstanding that, ex gratia payments for those whose salary is capped and an agreement to apply the pay percentage increase to pensionable pay for those whose salary is capped.

· To meet our challenge regarding rights to a pensionable pay increase for changes within pay ranges as stated in the 2012 agreement for ‘change in Band, Grade, Level, or Role’.

We will keep you advised on progress but please continue to feedback views via your reps.

As a reminder, a summary of the current offer is:

· An increase in the pay pot from 1.2% to 1.5% (April RPI was 1.3%)

· Pay to be determined by a distribution matrix “multiplier” based on performance rating that seeks to move those in lower pay zones up within the range. The previous matrix meant that all staff with a good rating would get less than inflation however the increase in pay pot and redistribution of this means that those “Good” performers in Zone 1 will receive above inflation

· An increase in Inner and Outer London Allowances equating to a 29% uplift, with the removal of SE Allowance for new staff. A review of people working in locations that do not attract an inner or outer London allowance to remove the payments entirely within the next three years.

· An increase in the Travel Subsidy of £250 (11%) with a further commitment to work with ATOC and RDG to seek opportunities for improving travel benefits for business and residential travel

· No uplift in pay ranges for 2016 due to the 2015 uplift equating to 3%, which is above the current movement in market rates of 1.37% with commitment to discuss the uplift in pay ranges prior to the 2017 Pay negotiations

· TSSA is to discuss and formulate proposals as to a “cost effective” means to address the long hours culture and overtime working

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