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Pay Award 2011

30 March 2011

A meeting of the TSSA Company Council and Senior Officers from Thomas Cook took place on the 18th March to discuss our detailed pay claim. I have now received confirmation of the Company’s offer in writing in respect of this year’s pay award.

The company made it clear that Thomas Cook had been hit very hard by several concerns in the last year not least amongst them the Volcanic Ash Cloud issue and political concerns in North Africa and the Middle East. If this was not enough, there is also the current financial downturn caused by the collapse of the banking system which has had a major impact on sales and the business in general.

The company’s offer has to be reflective of all these concerns and with that in mind the offer is as follows:

The Offer

A 2.5% pay award effective from 1st April 2011 to 31st March 2012 to be allocated as follows;

| Retail and Airports | | Sales Centre | |
| Grade | % Award | Grade | %Award |
| A | 3.25% | A | 3.5% |
| B | 2.5% | B | 2.75% |
| C | 2.0% | C | 2.25% |
| D | 0.0% | D | 0.0% |

Under both areas D performers would receive no award. The same award of 2.5% would be allocated in accordance with the performance management system for the appropriate head office employees.

The TSSA intend to engage with the company over all incentives and bonuses with a view to finding a more equitable distribution arrangement. We are also awaiting feedback on the question of overtime issues which will be reported back through Voice with the TSSA taking a particular interest.

TSSA made requests for improvements to Annual Leave. The company’s response was that the facility to buy and sell leave as part of its flexible benefits programme was sufficient at this point for the needs of its employees.

The TSSA made a request for an additional day’s leave during the Olympics so members could take the fabulous opportunity of visiting an event at an historical moment in time, however the company has identified a number of people opportunities which are available. All of which are offered on the basis that any individual will not have to use any leave to be involved. These include;

Pioneers, Volunteering (50 places) for up to 2 weeks, Secondments to LOCOG, Incentives for Sales staff and Tours to the Olympic Park. We are informed there are further initiatives due to be launched shortly, which will create an opportunity to be directly involved in supporting this historic event.

As the pay award is beneath the Retail Price Index and also will not be enjoyed by all members of staff the TSSA cannot recommend acceptance of this offer. We do however accept that the offer is consistent with other recent awards made in similar industries and that it is the best offer that can be achieved through negotiation. The TSSA invites all members to reflect upon the current economic difficulties when voting in this consultative referendum.

Please note that a referendum paper may in error be sent to staff not affected by this pay review. I ask for members in the interests of natural fairness not to respond if you receive this.

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