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TfL Initial Pay Offer

28 September 2012

You may have seen the communication from TfL concerning their pay offer to the joint trade unions. Clearly, the offer has good points, but, what is not so obvious are the potential issues.

Freeze on Pay Ranges – impact on salary and pensions

A "freeze of pay ranges for pay bands 1-3" means that the pay bands will not be shifted up by the percentage increase - rather you will move up by the % WITHIN your pay band, pushing you further towards the threshold or maximum within your band.

If you are already towards the upper end of your pay range, any increase you get which takes you above the top of the band will be non-consolidated into salary (ie. a one-off payment) and non-consolidated into your pension.

TSSA would advise members in pay band 1 to particularly examine the impact this could have on your pay and pension. What happens if you are at the top of your spine points???

This becomes even more significant when it comes to Year 2. You could potentially be losing out on 8.6% salary increase and consequent even greater impact on your pension.

TSSA is concerned that TfL are attempting to deal with challenges with the pension scheme by way of effectively de-coupling pay and pension entitlement.

Further redundancies?

TfL have said they need to make a further £2billion "efficiency savings" (cuts) to meet the targets set by Boris and the board. Much of this will come from a Horizon Mark 2. It is easy to offer inflation pay rises to staff that they intend to make redundant in the coming months!

TSSA's pay claim included a request to scrap PRP as we have no confidence in the objectivity of the current system. We have no detail as to what TfL are proposing to change though. We clearly need more information before responding on this point.

Season ticket

Where is the 75% season ticket reimbursement which benefits over 1000 TfL employees?

Fit for London?

The offer falls well short of the LUL pay settlement. Is "Fit for London" just a slogan to be used when it suits and abandoned when it comes to paying staff equally?

RPI cap

While RPI is likely to remain volatile going forward, the artificial cap of 5% has not been explained in budgetary terms. For example, is it modelled on current staffing numbers or based on further redundancies. TfL's ability to pay has not yet been explored in full.

Next steps

We have asked TfL to provide further information to enable us to model the impact of the offer on each pay band, each performance rating and of course, any equality issues this may reveal. Until we have this data, it would be precipitous to comment much further on their initial offer.

Further negotiations are scheduled for 5 October.

We will continue to keep you informed.

Get involved

Can you help TSSA to protect members’ interests at TfL? Do you have ideas or suggestions?

Contact: chesterl@tssa.org.uk / taylorm@tssa.org.uk

Download as pdf:   TfL Pay Initial Offer

Download TfL initial offer:   TfL pay offer

 

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