PAY PROPOSALS RECIVED AND CONFIRMED
REFERENDUM VOTE OF MEMBERS WITH RECOMMENDATION TO ACCEPT
I wrote to you previously on 30th August outlining the prospective proposals that the Department for Transport had agreed with your Union negotiators. I have summarised these proposals below for your reference and the written confirmation is attached in full at the end of this letter.
The pay proposal for all-grades (non-driver) for years 2023/2024 and 2024/2025 is at the same level as that for the drivers.
The confirmed proposals from the DfT are as follows.
· Year 2023/24 - 4.75%
· Year 2024/25 - 4.5%
We have already accepted an offer for year 2022/23 across the TOCs of 5% with a minimum underpin of £1750.
This proposal would mean that over the three years of our Defend Jobs, Pay & Conditions dispute all RMT members (including Drivers) will receive a percentage compounded 14.94% pay rise, with the £1750 underpin for members with salaries under £35,000 for year 2022/23.
Importantly, in these proposals our fellow members that have left employment since the previous deal will be eligible for arrears in pay until they left.
Due to the elapsed time in these proposals with pay to be backdated, contributions of arrears in the Railways Pension Scheme will have accrued. However, these arrears will not need to be paid back by you on the increased salaries, and your pension contributions will not increase as a result of these proposals for the year 2024/25 and will be updated according to salary in April 2025 and updated from July 2025.
The DfT proposals are a significant improvement on the Rail Delivery Group's previous proposals. The DfT proposal applies to all companies and is unconditional. Additionally, it is not connected to the previous workforce reform strategies that were being pursued by the RDG over the course of our industrial dispute.
There will be further discussions on industry-wide issues such as utilising new modern learning techniques and methods of training, with customer service training as a core skill (incorporating ticketing, accessibility, and information). Additionally, embedding the use of current and future technologies enabling new methods of working, and optimising resource planning and utilisation.
These discussions will be on a business-as-usual basis on Company Council agendas along with any existing productivity proposals that individual TOCs may have proposed. Such discussions are not related to the pay proposals.
Separately, a meeting will be convened within the next six months to discuss staff travel arrangements. Your Union will press for a new staff travel scheme covering all rail workers in these discussions.
Where TOCs have tabled productivity proposals previously, these talks are expected continue locally under the respective TOC collective bargaining arrangements. The pay proposals are not dependent on the outcome of these discussions.
Your Union's National Executive Committee has considered the proposals from the DfT and has acknowledged that the proposal is made in good faith and represents a reasonable set of proposals that defends jobs, pay, conditions and pensions. Therefore, your Union's NEC has instructed me to hold an e-referendum of our TOC members with a recommendation that you vote Yes to accept. The on-line referendum will close on at 11am on Wednesday 25th September 2024.
DFT Proposals
Pay Funding Proposal for TOC employees (other than driving grades) recognised under the collective bargaining arrangements with the RMT
I refer to our recent discussions and set out below a proposal for consideration by your National Executive Committee for the 2023/24 and 2024/25 pay reviews.
A modern rail system, fit to serve as the backbone of a modern Britain, needs an improved service for passengers. A key challenge is getting the rail system back on track to sustainable growth, with productivity and efficiency gains to deliver better value for money for both passengers and taxpayers.
The Department is prepared to make funding available to TOCs for the 2023/24 and
2024/25 pay years to be negotiated at each TOC pursuant to that respective TOC's
collective bargaining arrangements.
The proposal comprises funding for pay increases of 4.75% for year one (2023/24), and of 4.5% for year two (2024/25) for TOC employees other than driving grades covered under the collective bargaining arrangements with the RMT.
This proposal is based on the employee base salary and salary linked contractual allowances as at the respective 2023 and 2024 pay anniversary dates. It will be effective from the respective TOC's pay anniversary date conditional upon receipt of formal acceptance of the offer from all recognised Trades Unions for the respective
bargaining groups.
Employees who have left employment since the 2023 pay anniversary dates will be eligible for arrears up to their date of leaving (to include those who have changed employer) and, similarly, new entrants will be eligible for arrears from the date their employment commenced. For the avoidance of doubt, payment to leavers is being made as a goodwill payment and is an exception in recognition of the time that has elapsed since these pay review dates. It does not form a precedent for future pay deals and does not create any contractual entitlement to back pay for leavers.
For employees that are members of the Railways Pension Scheme and receive a backdated pay award following agreement of the 2023/24 and/or 2024/25 pay awards, for pensions purposes:
Contributions will continue to be based on pensionable pay as at 1 April
2024.
Contributions will next be updated from July 2025 based on pensionable pay on 1 April 2025 (which will take into account pay awards preceding that date).
In the event the member leaves pensionable service, the calculation of their scheme benefits will be calculated as if the pay award had been made on the
date it is backdated to, rather than the date it is awarded.
Any back-pay lump sum awarded will not be pensionable (for contribution purposes) and will only be pensionable to the extent necessary to give effect
to (3) above.
This applies regardless of whether previous offers of backpay have been treated differently and is subject to the existing terms of any pensionable pay capping arrangements in place.
As we now proceed towards setting up the new Great British Railways, this funding is designed to reset relationships with the RMT and improve the industrial relations climate across the industry. This will be delivered through joint commitment to avoid escalation of issues and through a willingness to working together to deliver a more operationally resilient railway, including through more efficient and productive working practices.
In preparation for the establishing of Great British Railways, these discussions on areas of cooperation will initially focus on working together through constructive joint problem solving to address industry-wide matters that will improve the operational resilience of the railway, e.g. utilising new modern learning techniques & methods of training with customer service training as a core skill (incorporating ticketing, accessibility and information); embedding the use of current and future technologies enabling new methods of working, and optimising resource planning and utilisation. Separately, a meeting will be convened within the next six months to discuss staff travel arrangements.
Where TOCs have tabled productivity proposals previously, these talks are expected to continue locally under the respective TOC collective bargaining arrangements.
Negotiations on individual TOC's 2025/26 pay review will take place in accordance with their individual collective bargaining arrangements. These could include efficiency/productivity proposals to help support the future operational resilience of GB rail services.
On the basis the above is acceptable to your National Executive Committee and your members via a referendum, I consider this a crucial first step towards working together to reset the industrial relations climate and improve the future prospects for the GB rail industry.
Yours sincerely,
Alex Hynes
Director General, Rail Services
Department for Transport
Referendum Instructions
Members will shortly receive an email from 'RMT Referenda' which will allow you to register your vote. Please follow the instructions and make sure you complete this by no later than 11:00 hours on Wednesday 25th September 2024.
YOU MUST HAVE AN EMAIL ADDRESS TO TAKE PART
If you know of any member who has not received this email or if you are having any difficulties voting, please contact the RMT Helpline on 0800 376 3706 or email or e-mail
[email protected]. If you do not receive your vote immediately, please check your junk/spam folders before contacting us for a replacement.
VOTE 'YES' TO ACCEPT THE OFFER
I will keep you advised of all further developments.
Yours sincerely,
