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Pay Overview

Pay Overview

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Pay Overview

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  1. Pay Overview CWU Special Forum Jeremy Baugh, Head of Research 9 January 2006

  2. 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

  3. 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

  4. Pay components

  5. RM pay settlements 95-05

  6. Basic pay • CWU has delivered substantial rise in basic pay • Since Oct ‘03 base pay has risen by almost a fifth (19%) from £261.93 to £311.50pw • Basic pay increases 2003-2005 have outstripped inflation (4.9%) and the going rate of settlements in outside industries (4.5%) • £311.50 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

  7. 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

  8. 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

  9. 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

  10. 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

  11. 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