Pay Overview CWU Special Forum Jeremy Baugh, Head of Research 9 January 2006
Overview: pay and conditions Background Highlight areas of progress Pay settlements Basic pay London Weighting/RRIS Other key issues Working time Working Time Directive Family friendly policies Conclusions
Background Latest pay data for RM and Logistics shows: Total staff numbers: 160,933 Part-time staff: 32,252 (20%) 27,000 in London (16%) Total pay costs: £3,244m 150 separate paybill categories Main pay components
Pay components
RM pay settlements 95-05
Basic pay CWU has delivered substantial rise in basic pay Since Oct ‘03 base pay has risen by almost a fifth (19%) from £ to £311.50pw Basic pay increases have outstripped inflation (4.9%) and the going rate of settlements in outside industries (4.5%) £ still well below UK norm (£395.60) OPG need 27% rise to reach UK norm Share in Success v basic pay £400 pa equates to 2.5% basic pay rise
LW & RRIS Union policy – national pay but recognise costs of living and working in London/SE 2003 deal - £600 rise in Inner and Outer LW (worth 18% - 30% for OPG) Guaranteed review mechanism focused on CoL – first by April 2006 RRIS – consolidation of RRIS monies Oct ’03 RRIS review 2005 – support principle but review areas/ regional pay
Working Time Basic net weekly hours (36hrs 40m) close to UK average (36 hrs 30m) Net hours overlooks crucial question of overtime (cost RM £181m in ‘05) Long standing union policy for SWW (35hrs) Impact of SWW on FT and PT staff Annual leave – 30 days max is ahead of UK norm (28 days) Greater flexibility to improve work-life balance
Working Time Directive Clear challenge for RM and CWU 48-hour limit/EU review of opt-out 1998 Joint Statement: Achieve compliance with WTD Focus on earnings, overtime, annual leave and part- timers Protect earnings, convert O/T into basic rates Address WTD as part of broader policy agenda
Family-friendly provision CWU policy calls for: Improve maternity and paternity arrangements and end disparity across RM Improve adoption leave for primary carers Extend bereavement leave Give adoptive parents the same maternity/paternity rights as natural parents Greater flexibility to take time off
Conclusions Current pay system is complicated and lacks transparency CWU have delivered on basic pay and LW Policy priorities Catch and pass UK average pay Cut working time and deal with WTD Improve FF provisions Preparations