Jan 13, 2015 - 2: confirm that proposals deliver efficiencies which provide for a self funded pay increase. It is import
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/JG/82915 13 January 2015 Dear Matt, 2015 Pay Negotiations, Controller Collective Bargaining Groups On 9th January 2015 we met again as part of the 2015 pay negotiations for the controller bargaining group. As you know these negotiations are taking place in the context of the very challenging environment of CP5 in which we are operating and at a time when we need to drive much greater levels of safety, train performance and efficiency. Against this backdrop, the pay award in 2015 will need to be sustainable and self-funding. We outlined our efficiency proposals in respect of the Controller group. These proposals are summarised in Appendix 1. We explained that if agreed, these proposals would enable us to offer a pay increase in 2015 of up to 2%. Please note these are proposals which we would expect to be jointly explored in further expedited working group meetings in order to 1: determine if we are able to develop initiatives which could work for both parties 2: confirm that proposals deliver efficiencies which provide for a self funded pay increase It is important to note that the company's efficiency proposals for controllers mirror those tabled for the operations pay bargaining group. This is because controllers are part of our front line operational work force and hence efficiency changes are likely to be effective if applied across the whole work environment - it would be difficult to agree them separately. Thus, if the operations bargaining group reject the efficiency proposals we would not be able to move forward with them solely for the controllers bargaining group. But we do, as part of these negotiations, invite you also to propose any initiatives which we could explore in order to reach a sustainable self funded pay increase of up to 2% specifically for the controller group.
The critical point is that without productivity changes which generate the requisite savings, we will not be in a position to offer a pay increase for 2015. But if we do reach agreement, then we would back-date to 1st January 2015 any increase (up to 2%) generated. If we are able to reach agreement on productivity changes which generate savings, then this could lead to an increase of up to 2% in 2015. In the absence agreement on the efficiencies for this year, this would mean 0% increase for 2015. In the meeting we also tabled our proposals for a long term deal. .As part of a long-term agreement, we offered increases for the remainder of CP5, (2016, 2017 and 2018 equal to the Consumer Prices Index (CPI). This would provide the security of cost of living pay increases for our people. You said that you did not accept CPI was an adequate measure of cost of living and that you regarded RPI as the only acceptable measure. As part of the discussions you sought an extension of the no compulsory redundancy agreement to cover Controller grades 1 to 4. We explained that whilst we are fully committed to doing everything reasonable to avoid compulsory redundancy we will not extend the no compulsory redundancy guarantee to cover controllers. We offered and would welcome the opportunity to enter into talks on providing greater job security for Controllers going forward. This could include pushing the use of bumping and voluntary severance and a clear commitment on retraining and relocation. As part of the negotiations we responded to the other items outlined in your pay claim. I am pleased to set out our response to you in Appendix 2. In the light of these challenging discussions you requested your Controller representatives join the scheduled meeting of your Area Council representatives on 15 January 2015 which we agreed to. We will also set a date for resumption of negotiations after 21st January 2015. Joanne Gill will liaise with your office to secure a mutually convenient date. I would like to reiterate what I said at the meeting which is that we recognise that these negotiations are extremely challenging for all parties and that we want to work with you to find an acceptable means of achieving a fair solution for our employees and your members. Yours sincerely,
Neal Lawson Director, Maintenance and Operations Services
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Appendix 1: Network Rail Controller Productivity Efficiency Proposals The productivity efficiencies we propose for Controllers are: 1) To enter into discussions to review overtime rates for controllers In operations pay talks we have proposed to review and harmonise overtime arrangements to create standard overtime rates for front line operational roles. We propose the same for controllers as they form part of our front line operational workforce. 2) To introduce and agree National Rostering Principles for Controllers, implemented by April 2015. Upon implementation, local agreements which do not comply with the revised NRP will be removed. We seek to introduce NRP for controllers and develop principles which support today’s operational business requirements. 3) Day Free From duty to attend a medical Under the current red book agreements staff receive a day free from duty to attend a medical. We propose to remove this replacing it with giving them sufficient time free from duty to allow them to attend which would include washing up time before and after the medical (where the travel time to attend a medical is in excess of 1 ½ hours alone we would still expect them to receive a day free from duty). 4) Removal of Stood Off Arrangements Under current red book and blue book agreements some staff, where they meet the criteria are covered by the stood off arrangements. We propose to remove this arrangement. Where staff are not fit to return to duty or no suitable position can be found we may consider releasing them on ill health grounds subject to fulfilling our commitments under our reasonable adjustments policy.
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Appendix 2: Network Rail Response to TSSA Controller Pay Claim Items Please find below Network Rails considered response in relation to the specific items raised in your pay claim. We recognise that we remain in pay discussions and as previously advised we need to focus on pay items and any final response on other items in your claim you would ultimately need to be considered as part of a final package. 1: A substantial increase in rates of pay This is dealt with in the main body of the letter reference ER/JG/829/15 2: Review of London and South East Allowances Allowances offered for London and South East are fair and balanced, and benchmark appropriately. We will not be increasing these allowances at this current time 3: Extension of the no compulsory redundancies commitment This is dealt with in the main body of the letter reference ER/JG/829/15 4: Reduction in the Working Week You have requested talks to work towards a 32 hour week over a period of time with no loss of pay. Without a corresponding reduction in pay this would add unacceptably to employment costs. We invite you to propose how such a reduction in the working week could be self funded 5: Claim for improvements to travel facilities The facility to provide safeguarded travel to all employees does not exist. We do not propose to change the current travel subsidy and the cap will remain at £2,250. 6: Company Private Healthcare Scheme Your claim requests this benefit is extended to controller grades There is not a rationale to extend this benefit, when reviewing appropriate benchmarks, and it would add unacceptably to employment costs. Consequently, we do not propose to extend this benefit to cover controller grades
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