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Babcock Rail 2021 Pay & Proposal on Harmonisation

2 June 2021

Your update on Babcock pay - Have your say on harmonisation proposal

Your TSSA Company Council reps have had a number Teleconference meetings with Babcock Rail management to discuss the 2021 pay claim. As we are aware, we continue to be in unprecedented times. From earlier in the year the company has made various announcements around its current financial position and it has been agreed to defer the base pay element until September 2021. If we reach agreement in September talks on a base pay increase, we will look for this to be backdated to the pay anniversary of April 2021. We will also be looking to ensure that EM grades are also in receipt of a pay award from any agreement in September talks.

As part of the pay talks in 2020 it was agreed that we would look to further deal with outstanding issues around pay anomalies and harmonisation of terms and conditions for some grades in the 2021 pay talks.

We now have a proposal on harmonisation for approval from members. Below is an outline of the proposal & Worked examples attached:

• Four former Amey employees who transferred on rates below their Babcock peers will receive the equivalent Babcock rate, including any base rate increase awarded.
• A bridging concept will be used whereby the eighteen former Amey employees who transferred on rates above their Babcock peers will receive tapered increases at a lower rate than the general pay award. The worked examples shown on Appendix ‘A’ use a tapered rate of 1% (i.e. half) against a modelled 2% pay award for illustration purposes. This would achieve harmonisation of 9 cases in one year, 7 cases in 2 years and the two remaining cases would be harmonised within 3 years.
• Obviously we cannot at this time accurately predict future pay awards. If the pay award proved to be less than 2%, the tapered rate would require to be adjusted accordingly e.g. a general increase of 1.75% or 1% would result in tapered rates of 0.5% and 0.25% respectively to enable harmonisation to be achieved within the 3 year target period. Similarly, if the pay award resulted in an increase above 2% there would be scope to increase the tapered rate to above 1% or to accelerate the bridging process.
• These tapered increases will apply for a maximum of 3 years as required in order to arrive at a situation whereby all employees within each grade are in receipt of a harmonised base rate within the lifetime of Control Period 6.
• Where, for historic reasons, a former Amey employee holds a substantially higher salary than others within the grade making harmonisation within CP6 impossible, s/he will be excluded from these arrangements and instead will maintain pay & benefits transferred under TUPE as a personal rate. (Only one employee falls within this category.)

Should you choose to accept this pay harmonisation bridging proposal, it would be implemented at the end of the pay award deferral period. Babcock contracts would be issued to former Amey employees resulting in immediate improvements in annual leave (a net increase of 3 additional days) and sick pay benefits, effectively equalising all terms and conditions for Babcock employees.

These harmonised benefits will be progressed for those in IA and IT grades, where salaries were harmonised as a result of the 2020 pay award, regardless of whether the bridging proposal is accepted.

This proposal represents a considered approach by the Company to address issues which have arisen following the CP6 TUPE transfer. However, should you find the proposal unacceptable, the Company will continue as at present to meet our legal obligation to protect the terms and conditions of transferred employees.


We will conduct an online referendum of members to see if the proposal on harmonisation is acceptable.

We are asking that members impacted and covered by collective bargaining (non-EM grade) click on the link below and indicate if they are in favour or not in favour of the proposal on harmonisation.

https://www.surveymonkey.com/r/8W8SVGN

We ask that members complete the referendum by 5pm Friday 18 June 2021

Members should contact their reps to discuss any issues on the harmonisation proposal:
Terry Keegans, Blantyre: terry.keegans@babcockinternational.com
Steven O’Brien, Blantyre: steven.obrien@babcockinternational.com
 

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