John Smith - TSSA

Feb 3, 2015 - Network Rail Infrastructure Limited Registered Office: Network Rail, 2nd ... Taking each of these elements of the package in turn I have set out ...
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Matt Barrow Regional Organiser Transport Salaried Staffs’ Associations Walkden House 10 Melton Street London NW1 2EJ

The Quadrant:MK Elder Gate Milton Keynes MK9 1EN

Our reference: ER/SB/833/15 rd

3 February 2015 Dear Matt, 2015 Pay Negotiations, Operations and Maintenance General Collective Bargaining Groups On 21st January we met once again as part of the pay negotiations for 2015 in two separate meetings covering both the Maintenance and Operations general collective bargaining groups. As we have explained, these are challenging negotiations, reflecting the financial limitations within which we must operate. Our offer in December was predicated on the requirement for any pay deal for 2015 to be self-funding and this has not changed. Offer in December 2014 •

An increase in base rates of up to 2% predicated on agreement to efficiency measures which would make the increase self-funding, or 0% pay increase for 2015.



A long term deal with an increase at the rate of the Consumer Price Index (CPI) in years 2016, 2017 and 2018.



No extension to the “no compulsory redundancy” agreement which expired at the end of 2014. However, we did commit to discuss how we can achieve greater job security in the future (we agreed that whilst in positive pay discussions, no notice of compulsory redundancy would be issued).

Network Rail Infrastructure Limited Registered Office: Network Rail, 2nd Floor, One Eversholt Street, London, NW1 2DN Registered in England and Wales No. 2904587 www.networkrail.co.uk

Enhanced Offer We have reflected carefully on our discussions and your response to the original proposal following the meetings held with your Area Council representatives. At our meeting on 21st January we put forward an enhanced offer summarised below: •

0% pay increase for 2015 as you were not prepared to agree the proposal for efficiency changes nor submit alternatives. As a consequence we withdrew the efficiency proposals.



A long term deal with an increase at the rate of the Retail Prices Index (RPI) – rather than CPI - in years 2016, 2017 and 2018.



Extension of the “no compulsory redundancy” agreement within Network Operations until 31 December 2015. This would not apply outside Network Operations. As part of this extension we want to meet separate to the negotiations to discuss appropriate job security measures for the future.



Provision of a national rail card for employees which will entitle them to a discount of 33% for themselves, their families and friends.

Taking each of these elements of the package in turn I have set out more detail below which should answer the questions you raised. Pay 2015 From the start of these negotiations we have made it clear that any increase this year will need to be self-funding. Having rejected the efficiency proposals we submitted, we are not in a position to fund a pay increase for 2015. As a consequence there will be 0% increase in 2015 and the efficiency proposals are withdrawn. Long term deal But, as part of a broader long-term agreement - recognising the challenge of 0% in 2015 - we proposed a long term deal for the remainder of CP5 (i.e. for 2016, 2017 and 2018) providing an increase in each of these years at the rate of the Retail Price Index (RPI). We would use the November RPI figure, published in December 2015, 2016 and 2017 respectively. This increase will be applied to the base rates for all ‘spot’ rates of pay. Employees in Bands 5 – 8 receive annual performance reviews and pay awards will continue to be distributed according to performance ratings in 2016, 2017 and 2018 in accordance with our established practice. A table will be published for 2016, 2017 and 2018 to outline the increase an individual will receive based on performance ratings and we will formally write to your Union annually outlining this. Review Score Outstanding Exceeded Good Pa