Our Ref: BR2/0001/SWR
11th April 2018
Rates of Pay & Conditions of Service 2017 – South Western Railway
In line with union policy, a pay claim for an increase in pay and improved terms and conditions was submitted to the company. The Regional Organiser has met with them and the following offer has been tabled:-
• A 3.9% increase to basic rates of pay, effective 1st October 2017. The next pay review will be October 2018.
• An increase of 3.8% in basic rates of pay or £800, whichever is greater, effective 1st October 2017. The next pay review will be October 2018.
Additionally, the London & South East (and associated Regional) Allowances will remain unchanged at current rates.
The pay increase will apply to pensionable pay from 1st October 2017. Pension contributions from 1st July 2018 will be based on the new rate of pay. This pay award is subject to the pensionable pay cap of RPI + 0.25% which applies to all pay increases, excluding non-pensionable amounts in any given year (April to March). Any pay award above this amount will be pensionable for future service only.
For reference purposes, the agreement for the Pensionable Pay Cap is as follows:-
The Pensionable Pay Cap
The Cap Year will run from 1st April to 31st March each year.
The Cap Amount in a Cap Year will be based on RPI plus 0.25% with RPI measured over 12 months to September the previous year (the reference RPI)
The sum of all pay increases (pay awards and promotions etc) in a Cap Year will be measured against the Cap Amount.
The Cap will be applied equally to all existing elements of past service pensionable pay.
Where a pay award or promotion takes an individual’s increase above the Cap, this will be pensionable only from the date of the increase exceeding the Cap amount.
Pension Arrangements in respect of the October 2017 Pay Award
The Cap Year 2017 from 1st April 2017 to 31st March 2018.
The Reference RPI looks at the 12 months to September 2016. This was 2%.
Therefore the pensionable pay cap applicable in Cap Year 2017 is 2.25% (2% plus 0.25%).
This is in line with the agreements made with the recognised trade unions as detailed in the letter sent to employees on 14th April 2016.
Your union’s National Executive Committee (NEC) has considered the offer and taking on-board the recommendations of your representatives, it has instructed me to inform the Company of our acceptance of Option One of the offer. This instruction has been carried out and I have requested that the increase and the back pay are paid at the earliest opportunity.