Rates of Pay - Network Rail

Rates of Pay - Network Rail

27 February 2015



Our Ref BR6/0001
27th February 2015
Dear Colleagues,
RMT has been in talks with Network Rail over our 2015 pay claim for Operations, Maintenance, Bands 5 to 8 and Customer Service staff. This is first time pay discussions are being held simultaneously for all RMT recognised grades. 
At the first meeting, Network Rail stated from the outset that any pay increase for 2015 would need to be self–funded as they were looking to make “efficiency savings” and they took away our pay claim for consideration.  At a subsequent meeting in December they tabled a four year pay proposal where they would offer up to 2% in 2015 if we accepted various productivity strings for Operations and Maintenance staff. For 2016, 2017 and 2018 a CPI level of inflation increase would be applied. Historically RPI has been used by Network Rail to calculate pay increases, which is generally higher than CPU and in our view a more accurate figure for inflation. In addition the company refused to further extend the “No compulsory Redundancy” commitment beyond the pay talks.
A meeting was arranged between the union’s Executive and our Area Council reps to seek their views on these proposals. It was abundantly clear that the offer was totally unacceptable and that members would not sacrifice terms and conditions in order achieve a pay rise. Therefore Network Rail were informed that their proposals were rejected and that we would not consider any offer that included productivity strings.
Network Rail has now tabled a new offer which is summarised below : -
The productivity strings have been withdrawn and a 0%pay increase is proposed for 2015.
2016, 2017, 2018
An RPI level of inflation increase to basic rates of pay would be applied for each year. The November RPI figure published in the previous December will be used to calculate these increases. i.e. the November 2015 figure would be used to calculate the 2016 increase effective  1st January 2016. 
Band 5 to 8 staff would receive pay increases based on performance ratings as per current practice. Where their salary is above the pay band maximum this increase would be paid as a non-pensionable lump sum. Network Rail rejected our request to increase salary bands however they did commit to review the band maxima for 2016, 2017 and 2018 against the market data.
Commitment to No Compulsory Redundancies for 2015
The “No Compulsory Redundancy” commitment will be extended until 31st December 2015. The previous commitment expired at the end of 2014.
This commitment affects all staff working under Network Operations (Operations, Signalling, Maintenance, Band 5 to 8 staff and Customer Service Staff). The company will be seeking meetings with us to discuss the subject of job security during 2015.
Travel facilities
For staff currently not receiving privilege travel, Network Rail will provide an annual National Rail Card giving a 33% reduction in off peak travel for employees, their friends and family. Although this is a taxable benefit, the company propose to cover this cost.
Having discussed this offer with your reps, the General Grades Committee has decided to conduct a referendum of all affected members with a recommendation to reject this offer. You now have an opportunity to have your say on these proposals which your union strongly recommends you vote NO to reject this proposal. NB : If the offer is rejected, we will automatically be in dispute with Network Rail and members will be balloted for industrial action.
We believe the proposals from Network Rail are totally unacceptable. The proposal for 0% in 2015 is effectively a pay cut as it does not keep your earnings in line with the cost of living. With your pay falling behind inflation for 2015 the next three years will only maintain this loss. By the end of the pay deal you will effectively be worse off than when you started.
Network Rail is making huge profits and this is all down your hard work, for which you should be fairly rewarded. Although their commitment for no Compulsory redundancies in 2015 is a positive step, we have no assurances that they aren’t planning compulsory redundancies for 2016 and beyond!
Voting papers will sent to your home addresses fromMonday 9th March 2015 and the referendum will close on Tuesday 24th March 2015. If you or any of your colleagues do not receive your voting papers by Tuesday 17th March please contact us immediately so that one can be sent to you.
Yours sincerely
Mick Cash
General Secretary
Please check your RMT Membership details!
We are requesting that all members go on-line atwww.rmt.org.uk to check your membership details.  This can be accessed via the Members’ area where any changes can be made. However if you are unable to do so for any reason please email the changes tomemdep@rmt.org.uk  or alternatively speak to the Freephone RMT Helpline on 0800 376 3706. Please also take the opportunity to speak to your colleagues and ask them to ensure all their details are also correct.

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