Feb 3, 2015 - Network Rail Infrastructure Limited Registered Office: Network Rail, 2nd ... Taking each of these elements
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 Partially achieved SPIR
% Increase by Rating TBA TBA November RPI% TBA 0.00%
Where an individual’s salary is already above the band maximum, or the pay award would take the individual’s salary above the band maximum for their position, the amount above the maximum will be paid as a non-pensionable lump sum, in accordance with our established practice. In respect of your request to review the band maxima for Role Clarity Bands 5-8, these were last uplifted with effect from 1st January 2013. Having reviewed market data, we will not be increasing the band maxima for 2015. We commit to review with you the band maxima for 2016, 2017 and 2018, against the market data. No Compulsory Redundancy (No CR) Agreement If agreement can be reached on an overall package we agreed to extend the “No CR” agreement within Network Operations only until 31st December 2015. For clarity this extension will not apply to employees in other functions within Network Rail (i.e. Corporate functions; IP; Digital Railway & STE), as determined by the reporting line on the template organisation charts. We do want to enter into discussions after reaching agreement on the overall pay deal, to identify recommendations which provide for effective job security measures for the future. Travel In respect of Travel facilities as part of the overall package, we will provide a national rail card for employees which will entitle them to a discount of 33% for themselves, their families and friends on off peak travel. The travel offer which has been agreed with ATOC which consists of all available railcards which are on the national rail website, as highlighted below: Family and friends railcard Two together railcard Young persons railcard Disabled persons railcard Senior railcard Network rail will give employees the option to choose the railcard most appropriate for them free of charge, and will ensure the tax position is covered – which adds to the value of this benefit. The cards allow employees a 33% discount with a variety of discounts which will include peak and off peak, standard and first class. The details of precisely what each card provides is set out in Appendix 1 to this letter. The national railcard is a product available for purchase by the general public. Following detailed discussions with ATOC, this was the maximum outcome achievable at this time. Importantly it gives us a platform on which to base future discussions. For the future, we need to demonstrate how many of our employees utilise the offer and the impact this has on existing rail services. With this information, we will be able to engage in further reviews with ATOC and we have committed to undertake this review annually.
Other Items In respect of the other items of your pay claim, other than those items revised above our position remains as set out in our letter of 22nd December 2014. In parallel talks on pensions, we also set out our proposal in respect of addressing the increase in costs resulting from the removal of the two-tier state pension in 2016. Whilst this does not meet the full cost, we set out a cap on salary increases for pension purposes of RPI (rather than the current RPI + 0.5%), to take effect from 1st April 2015 and we formally wrote to you in this respect on 5th January 2015. As set out in that letter, and referred to in our meeting on 21st January, this proposal is conditional upon reaching agreement in the current pay negotiations At the end of the meeting you requested a further meeting of your Area Council representatives to discuss the revised offer, which was agreed. This package - which represents our final offer - represents a substantial improvement of the previous offer. It provides a level of income security across a four year period which is rare across British industry and is one which we strongly urge you and your members to accept. I look forward to receiving your considered response in due course. Yours sincerely,
Neal Lawson Director, Maintenance and Operations Services
Appendix 1 – National Railcards Explained Family & Friends railcard Family & Friends Railcard gives you 1/3 off most adult fares and 60% off kids’ fares throughout Great Britain and can be used by up to four adults and four kids. Railcard discounts are not available on tickets for morning peak period services, for journeys wholly within the London & South East Network Railcard area on Monday to Friday, except on public holidays. The card can be issued in the name of two adults, so that when one named person can’t use it, the other one can, as long as there is at least one child over the age of five travelling. This Railcard also allows you to take advantage of partner offers, giving you exclusive discounts across the UK. Two Together railcard Get 1/3 off rail fares when you travel together with the Two Together Railcard. The Two Together Railcard gives two named adults 1/3 off rail fares when they travel together by train. You can get 1/3 off Standard and First Class Anytime, Off-Peak and Advance fares on train services throughout Great Britain, when you travel after 0930 Monday to Friday, and any time at weekends and on Public Holidays. The Two Together Railcard can be used as many times as you like throughout the year. To find out more online visit twotogether-railcard.co.uk. You will need digital photos of the two named people on the Railcard. 16 - 25 railcard The 16-25 Railcard gives you 1/3 off most rail fares throughout Great Britain, including all Standard and First Class Advance fares for £30. To be eligible for a 16-25 Railcard you must be 16-25, or a mature student – 26 years or older and in full-time study. This Railcard also allows you to take advantage of our great partner offers, giving you exclusive discounts across the UK. To find out more online visit twotogether-railcard.co.uk. You will need a valid UK driving licence or passport number to prove you’re eligible, and have a digital photo saved on your computer. Please note: A £12 minimum fare for Single and Return tickets, applies between 04:30 and 09:59 Monday to Friday except on Public Holidays or during July and August. Senior railcard For those 60 or over the Senior Railcard gives you 1/3 off most Standard and First Class rail fares throughout Great Britain. Your Railcard also allows you to take advantage of partner offers, giving you exclusive discounts across the UK. You will need a valid UK driving licence or passport number to prove your eligibility. Please note: Railcard discounts are not available on tickets for morning peak period services, for journeys wholly within the London & South East area on Monday to Friday, except on public holidays.
Disabled railcard If you have a disability that makes travelling by train difficult you might qualify for the Disabled Persons Railcard. The Railcard gives you – and one adult travelling with you – 1/3 off most First Class and standard rail fares throughout Great Britain. You may qualify for a Disabled Persons Railcard if you have: a visual impairment, a hearing impairment, epilepsy, or are in receipt of a disability-related benefit. Check to see if you are eligible on the Disabled Persons Railcard website.
