Circular No. NP/292/1619December 2016
To the Secretary, all Branches & Regional Councils
Dear Colleagues
RMT PAY BULLETIN: December 2016
Headline forecasts
Inflation rate: Average new forecast
November 2016 RPI inflation (change in cost of living relative to same time one year earlier) was 2.2%
Inflation forecasts
Citigroup (3.9% - forecast made in November 2016),
RBS Global Banking and Markets (3.7% - forecast made in November 2016),
IHS Markit Economics (3.7% - forecast made in November 2016).
Bank of America/ Merrill Lynch (3.7% - forecast made in November 2016).
Recent RMT Settlements
Company
/Award
/Effective From
Train workshop and maintenanceAlstom Chester / An increase to basic rates of 2%. This pay deal covers all grades at Chester as defined in the Collective Agreement.
The anniversary date for future pay reviews will be 1st April
The Company confirms that it will enter into discussions with RMT to align with the Rail Franchise Schedule in 2017 regarding Chester Terms & Conditions.
Additionally, confirmation of the reduction in the working week to 38 hours as per the agreed 2015 pay deal has been implemented on 1st June 2016 and a further reduction to 37 hours is due to be implemented on 1st June 2017 / 1 April 2016
Train Operating Companies & Freight Operating Companies
Virgin West Coast /
- An increase of 2.2% or £500, whichever is the greater, applicable to all dynamic allowances, and backdated to 1st April 2016.
- An increase of 2.2% on all dynamic allowances.
- Entitlement to a breakfast item for those on duty on-board, during the hours of the breakfast service.
- The introduction of ‘Plus 1’ travel facilities where employees who do not currently benefit from travel facilities for a spouse can nominate a person (friend, relative or partner) to receive the same benefits (unaccompanied travel, same class of travel as the employee).
- The formation of a joint working party to explore the feasibility of the reduction of the working week, without the loss of pay, from May 2017.
Freightliner Heavy Haul / 2015
- No pay increase for 2015.
- A Salary increase of RPI (based upon figure published in September 2016 which is 1.8%) plus an additional 0.25%. The total percentage for year 2016 being 2.05%.
- A salary increase based upon the RPI figure published in September 2017 minus 0.25% and subject to a minimum increase of 1% and a maximum increase of 2.5%.
- JWP to review Terms and conditions for Controllers and Roster Clerks.
- The final equalisation payment to be made for East V West, mobile shunters as per 2003 agreement.
- 104 minimum free days for Ground staff (Static Operatives, Team Leaders and Driver Operators) guaranteed (2 per week, to be grouped where possible in the base roster).
With regard to our Mobile Operatives, a separate referendum is being held in relation to Rest Day payments:-
Current Terms & Conditions
- Overtime/Rest Day Working: Currently you are paid 148 hours every 4 weeks (avg. 37 hour week), this means if you work a rest day it counts on all occasions towards your contractual 148 hours pay, overtime at basic rate is only paid when 148 hours is exceeded.
- Clause 2.5.1 of the Groundstaff restructuring agreement states “A minimum of 1 REST DAY must be shown each week in the roster. The amount of REST DAYS within a link will be determined by mutual agreement between management and local staff representatives. Links are subject to review periodically.”
- Your minimum turn length is 7 hours 24 minute.
Serco Caledonian Sleeper / The Company has agreed to pay a London Allowance to all members working at London terminals with payments ranging from £450 annually for part time members living out with 75 minutes of travel of a London terminal to £1349.40 annually for full time members living within 75 minutes of a London terminal. These payments will be backdated to 1st April 2016 / 1 April 2016
C2C /
- An increase of 1.4% to basic salary and dynamic allowances effective 1st July 2016.
- A further increase of 0.6% to basic salary and dynamic allowances effective 1st January 2017.
- Two additional lieu days as compensation for the continued ‘week 53’ rostering issue.
- A commitment to enter into negotiations with an aim of achieving revised terms and conditions of employment for retail guards.
Infrastructure & Engineering
Carillion (Arriva Rail North Contract) /
- TheintroductionoftheLivingWageFoundationrateofpay,whichisasignificant increaseforourlow-paidcleaners.
- Significantpayincreasesacrossthecontract.
- Anumberofmembersworkingabove37.5hourswillseethemreducedto37.5hours withnolossofpay.
- IntroductionofaSick-PaySchemewhichwillprogressivelyincreaseoverfiveyears forthosenotin receiptofsickpay-around85%ofthecontract,mainlyformerISS andCFSmembers-to13weeksasfullpay.
- Introductionofenhancedovertimerates.
- Introductionofnight-shiftpremium.
- An increaseintheon-callrateforrelevantmembers.
These proposals include creating four main soft-Services Grades of:
- Static/Mobile Cleaner
- Station Maintenance Technician Level One
- Station Maintenance Technician Level Two
- Supervisor - Multi Function
- Electrician
- Hard Services Supervisor
- Plumber/Gas Fitter
- T&I Technician
East Midlands Trains (Engineering Grades) /
- A 2% “no-strings attached” increase in basic pay and London Allowances, effective 1st April 2016.
- In addition to the above, the Company has committed to a joint working group to complete a feasibility study into the implementation of a reduction in the standard working week by up to 2 hours across Engineering with effect from 1st March 2017. The group will include a review of opportunities for harmonisation of terms and conditions which would assist in delivering a reduction in the standard working week.
- Any reduction in hours must not detrimentally impact engineering depot output and a standard working week will be no less than 35 hours. Any proposed opportunities for harmonisation of terms and conditions of employment will be agreed on a depot by depot basis. Ultimately any effective date of a reduction in the working week will be determined by the Company based on the outputs of the feasibility study.
- The joint working group will commence in October 2016, on a date to be confirmed..
- The Company will have to satisfy itself whether approval from the Department for Transport is required before any proposals from the joint working group can be agreed to.
- Finally, as discussed at the meeting on the 7th September, I confirm that the Company has chosen to implement the Apprentice Salary Progression, linked to Senior Team Member / Technician annual salary, outside of the pay discussions. The increase to Apprentices pay will be instructed to payroll this month with the new salaries being effective from 1st April 2016. For clarity the revised Apprentices salary will be:
SCHEME YEAR / %OF SENIOR TEAM MEMBER/TECHNICIAN
ANNUAL SALARY
Year One / 45%
Year Two / 50%
Year Three / 60%
Year Four / 80%
/ 1 April 2016
Carillion (Heathrow Express Contract) /
- From 1stApril 2016 for Day Shift Operatives – 1.5% above National Living Wage rate, taking the day rate to £7.30
- From 1stApril 2016 for Night Shift Operatives – increase the current night rate of £7.30 by 20p , taking the rate to £7.50
- All those individuals above the day and night rates to be red circled
- From 1stApril 2016 for Supervisors – 1.5% increase to current salary rate.
- In addition RMT has negotiated to include Nightshift in the ‘Security Sweep ' payment which is an allowance agreed with this union for Day Shift a couple of years ago and is related and dependant on the work being carried out on request from Heathrow Express .
- As you may be aware, Nightshift operatives conduct train sweeps for a short period during their shift. The allowance has been calculated on a pro rata basis and I can inform you that this equates to a train security sweep allowance of £557 per annum (pro-rata cost =£2.14 per day. This payment will be backdated to 1st January 2016.
- As with the Day Shift Train Sweeps allowance, this is a non-contractual allowance and will be reviewed periodically.
Pullman Rail / Year One – 2016/2017
- 3% base pay increase, effective 6th April 2016.
- Reduction in the working week of one hour. This will be implemented from the first Sunday night shift one week from the date on which the Company receives formal written acceptance from the union.
- Enhancement to Company sick pay entitlements and payable from day one of sickness absence, also bringing payment of sickness absence as a result of a work-related injury in line as follows:-
(After seven days) / (Applicable from Day One)
Up to 6 months / Statutory Sick Pay (SSP) / SSP
7-24 months / 5 days’ half pay incl. SSP / 10 days’ half pay incl. SSP
After 2 years / 5 days’ full pay incl. SSP / 10 days’ full pay incl. SSP
After 5 years / 10 days’ full pay incl. SSP / 20 days’ full pay incl. SSP
This will be implemented from the first Sunday night shift one week from the date on which the Company receives formal written acceptance from the union.
Year Two – 2017/2018
- 3% base pay increase
- Further reduction to working week of one hour
- Further enhancements to Company Sick Pay and payable from day one of sickness absence:-
Up to 6 months / Statutory Sick Pay (SSP)
7-24 months / 10 days’ half pay incl. SSP
After 2 years / 15 days’ full pay incl. SSP
After 5 years / 30 days’ full pay incl. SSP
/ 6 April 2016
Balfour Beatty /
- 2% increase on basic pay effective from December 2016. This is dependent on all employees currently on lunar pay cycles transfer to either a weekly or monthly pay cycle.
- A productivity bonus for all OTM Operators working at the Balfour Beatty Rail Plant.
AMCO /
- A 2% cost of living increase on basic pay effective from 1st January 2017.
Road Transport and Buses
First South West (Kernow & Somerset Buses) / SOMERSET from week commencing 27th March 2016 (weekly paid) and 1st April 2016 (monthly paid).Drivers
•Basic rate £9.50 per hour
•Overtime rate £10.50 per hour
•Unsocial hours additional premium £1.05 per hour
•Training rates: £8.00 per hour new starters without PCV licence until trained and on road solo then £8.50 per hour for 12 months before advancing to substantive rate above; PCV holding new starters £8.50 for all hours from commencement of training until going solo and then the same £8.50 per hour rate for a further 12 months before advancing to standard rate above.
Other Grades
•Rates to rise pro rata to the Driver rate increase percentages.
CORNWALL from week commencing 27th November 2016 (weekly paid) and 1st December 2016 (monthly paid).
Drivers
•Basic rate £9.50 per hour
•Overtime rate £10.50 per hour
•Unsocial hours additional premium at 5% of basic rate
•Training rates: £7.50 per hour new starters without PCV licence until trained and on road solo then £8.00 per hour for six months followed by a further 12 months at £8.50 before advancing to the substantive rate above; PCV holding new starters £8.00 for all hours from commencement of training until going solo and then the same £8.50 per hour rate for a further 12 months before advancing to standard rate above.
Other Grades
•Rates to rise pro rata to the Driver rate increase percentages.
The next pay review date will be 1st April 2017. / See detail
DHL Prudhoe / Option One
- A 2.1% backdated to 1st July 2016.
Stagecoach Lancashire Drivers / Negotiations for a pay increase for our members have concluded and the following offer has been made:-
- 1st September 2016 1.49%
- 1st May 2017 0.68%
- 1st September 2017 0.68%
- 1st May 2018 1.06%
- 1st September 2018 0.95%
London Transport and other Metro
Cubic Transportation Services /- A 2.5% increase for all grades, effective 1st April 2016
- No other changes to terms and conditions
- Christmas and New Year arrangements are that offices will be closed from 25th December to 3rd January with the exception of a skeleton staff to maintain services
Tube Lines / NIGHT RUNNING AND PENSIONS
- Pensions: Access to the TfL Pension Fund for all current employees and new joiners from 29th January 2017.
- Pay: A protected RPI pensionable salary increase in every year from April 2015 until April 2019. Plus a consolidated £500 payment in the first year in recognition of the move to a 24-hour passenger service operation.
- Night Tube: A £500 non-consolidated payment to all Operational Staff following the successful launch of the service on the Piccadilly Line on 16th December 2016.
Current employees who are members of the Tube Lines Pension Scheme, or who are eligible for membership, will be offered the opportunity to join the TfL Pension Fund for future service from 29th January 2017.
New employees joining Tube Lines on or after 29th January 2017 will have the same opportunity to join the TfL Pension Fund as new employees in London Underground or Transport for London.
Additionally, a very long-standing claim has also been successfully resolved as former Metronet employees who are now employed by TfL or London Underground will also be given a further opportunity to join the Tfl Pension Fund on 29th January 2017.
In return for the above, RMT has committed to examine technology driven savings across the Tube Lines and London Underground businesses in the asset and operational support areas. Any efficiency projects will of course be subject to the existing agreed policies and procedures.
Pay
The pay offer which has been accepted is identical to the one given to LUL members and is detailed below. I have asked that the increase and backdated money is paid to members at the earliest opportunity and Tube Lines has advised it will be paid through the first available payroll following acceptance of the offer.
Year 1 – An average increase of 2%, made up of 1% plus a flat rate of £500 consolidated increase for all grades in recognition of the transformation to a 24-hour passenger service operation, effective 1st April 2015.
Year 2 – RPI or 1%, whichever is the greater, effective 1st April 2016.
Year 3 – RPI or 1%, whichever is the greater, effective 1st April 2017.
Year 4 – RPI + 0.25% or 1%, whichever is the greater, effective 1st April 2018.
The RPI figure is February RPI, as published in March each year.
Night Tube
In recognition of the launch of Night Tube, the Company will pay a £500 non-consolidated payment to all operational staff covered by this agreement. This payment will be made in the first available payroll following the successful launch of the service on the Piccadilly Line on 16th December 2016.
Track and Signals staff will be required to move to a Sunday to Thursday roster to support the operation of Night Tube on the JNP lines. However, a working group will finalise the roster arrangements and where roster changes are required, cases of genuine, demonstrable individual hardship will be considered locally using existing policies.
No other grades are affected by any roster changes due to Night Tube. / N/A
Shipping & Maritime
Royal Fleet Auxiliary /
- 1% increase to basic pay
Caledonian MacBrayne / One Year Deal
- 2% salary increase effective from 1st October 2016
- Night-watchmen to receive double time for hours worked on Christmas Day and New Year’s Day
- Pay deal of 2% salary increase effective from October 2016, paid in one year.
- Bonus of 1.5% will be payable upon achieving an increase in excess of £1m on operator return in order to fund this cost. This bonus payment will be made in November 2017 salary.
- The company are confident that the £1m over operator return will be achieved which would result in the bonus being paid.
- A joint working party will be established to discuss any future bonus arrangements.
- November 2016 salary will include bonus payment which was agreed under previous pay negotiations.
Serco Northlink /
- An increase of 2%, effective 1st October 2016
Isle of Mann Steam Packet /
- A 3% increase to rates of pay for all Ratings effective from 1st January 2017.
Recent non-RMT settlements
Company (Sector)
/Award
/Effective From
Archant (Ipswich) /- Performance-related increases of 1.5%-4.5% - most staff receive 1.5%
Further Education (England) /
- 1% increase with a minimum underpin of £250
Higher education /
- 1.1% increase with higher increases for seven lowest points on pay scale; points 1 and 2 increase by 3.1%
IKEA Distribution /
- 4.8% increase worth 38pph - 16 month agreement
JaguarLandRover /
- 3.5% increase and £750 bonus
/ 1 November 2016
Shop Direct (Manchester) /
- Minimum of grades G-M increased, lowest grade increased by 11.5% to £14,662; performance related pay introduced with awards between 1%-4% - most staff receive 2%
Teaching (sixth form colleges) /
- New nine point pay spine introduced, which restores pay parity with schools at top and bottom of spine. The lowest pay point is 3.7% higher than previously. Further increase of 1% in January 2017.
We use RPI and not other measures of inflation such as CPI or CPIH
RPI, which includes housing costs and excludes high earners’ spending, is the only inflation measure to use for negotiating pay (referencing average earnings is no longer recommended).
RPI is also used to calculate index-linked government bonds, privately issued index-linked bonds, National Savings and Investments, Corporation Tax, Business Rates, Alcohol Duty, Tobacco Duty, Gaming Duty, Air Passenger Duty, Vehicle Excise Duty, Climate Change Levy, car and van Fuel Benefit Charge, regulated rail fares, regulation of water and sewerage charges, indexation of British Telecom’s wholesale charges and interest payments on student loans.
CPI is designed for comparing different EU countries’ economic performances and not for internal UK purposes. It excludes housing costs (though includes stockbrokers’ fees and foreign students’ university tuition fees), is calculated to a mathematical formula less responsive to price fluctuations and doesn’t adequately reflect changes to ordinary workers’ cost of living: so says the Royal Statistical Society.
Any attempt by an employer to link a pay award to CPI or a new variation CPIH must be refused and should be logged with the union’s National Policy Department.
Yours sincerely,
Mick Cash
General Secretary
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