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Network Rail Bands 1-4 pay offer 2016 Accepted

1 July 2016

After a meeting on 27th June, your reps were able to seek significant further improvements and clarify matters relating the Bands 1-4 Pay Settlement.


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The feedback from last month’s referendum on the company’s previous offer marginally rejected the former deal, mainly on the basis of the failure to increase the pay ranges, lack of clarity over phasing out SE Allowances and no pay increases for those at the top of the ranges.

We have now secured the following in addition to the previous offer:

  • Employees paid above the maximum of the pay range (above zone 3); will receive a one-off non-consolidated payment up to a maximum of £500. The payment will be calculated using the pay for performance multiplier for zone 3.
  • Where the normal pay award would take the salary over the maximum of the pay range, the following will apply. The salary will be increased to the maximum for the pay range. Any additional amount will be paid as a one-off non-consolidated payment, up to a combined total value of £500, for both the salary increase and non-consolidated payment.
  • Clarity that those who currently receive SE Allowance (which will be phased out for new starters) will not have this removed.
  • Achieved the following commitment to review and increase the pay ranges on an annual basis (ahead of the pay negotiations, commencing from 2017)  “The market forces which determine pay ranges will be reviewed, shared and discussed with the TSSA. If this review indicates that increases to specific pay ranges are required these will be negotiated and implemented”

This deal will now benefit an additional 470 managers who are above the maximum of the pay ranges and a significant number of those who are close to reaching that. The ex gratia payments will apply to 2016 only.


Conditional to this offer was full acceptance by the National Management Council. Given the further improvements we believe that we have secured the best deal achievable through negotiation for our members.

Therefore we have now formally accepted this offer on behalf of our members.

As a reminder, these improvements supplement the other elements previously negotiated:

  • An overall pay pot of 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

We would like to thank you for your feedback on this matter, which has assisted us greatly with acheiving a more favorable outcome for our members.


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