rmt pay claim 2015 - london underground

8/9/2019 RMT Pay Claim 2015 - London Underground

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National Union of Rail, Maritime & TransportWorkers

Rates of Pay & Conditions ofService 2015

London Underground Ltd


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Introduction

This document represents the RMTs application on behalf of our members

working for London Underground Ltd for an improement in pa! and conditions

of serice prior to the ne"t pa! negotiations# $er the course of this document

we will address the following issues%

# ' substantial pa! award

(ramatic rises in liing costs necessitate a substantial, unconditional pa!

award at the earliest opportunit!, in order for our members pa! to keep pace

with both the increasing cost of liing and rates of pa! in the industr!#

)# ' minimum *at rate increase for those on the lowest pa!

Those members who receie the lowest salaries bear the brunt of an!

increase in liing costs and, as such, should be a+orded additional protection

in the form of a minimum *at rate increase#

# Reduction in the working week

RMT members hae identi-ed a reduction in full.time working to a / da!, )

hour week as a ke! target 0with a pro.rata decrease for part.time workers1#

/# 2nding the practice of permanentl! managed acancies

The unions polic! is for management to increase leels of coerage in the

roster and to cease the practice of permanentl! managed acancies#

3# 4est trael facilities for all sta+

'll sta+, whether directl! emplo!ed or not, should receie free access to all

trael facilities as standard# This includes indiiduals who proide support

serices such as cleaning ia outsourced companies, being entitled to the

same trael facilities as directl! emplo!ed workers#

5# $ertime

The union opposes the use of oertime where e"tensie and continued

acancies e"ist% we also oppose contractual, compulsor! and the rostering of

oertime#


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6# 7amil! friendl! policies

The desire for improed work.life balance is coupled with a demand for more

progressie 8famil!.friendl! policies and a claim for 3) weeks full pa! for all

women on maternit! leae#

Financial information

London Underground Ltd

7or )9:/ reenue from fares was ;)#)


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>n the !ear to March )9/ London Underground Ltd had total assets 0less

current liabilities1 of ;6#)< billion#

This was up from ;5#/ billion the !ear before ? a rise of oer 3=#

LUL had ;@ million in the bank: on deposit#

'nd Mike 4rown, Managing (irector of Rail and Underground receied total

remuneration 0e"cluding pensions1 of ;@/,33#

Tube Lines Ltd

>n the !ear to March )9/ Tube Lines Ltd 0owned b! London Underground Ltd1

had total assets less current liabilities of ;6


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Passenger ourneys

The number of Aourne!s on the Tube are proAected b! TfL to increase as followsB

Service volume


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The number of kilometres traelled on the Tube are proAected b! TfL to increase

as followsB


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Sta!ng levels

Cet, the number of workers emplo!ed b! LUL has sharpl! decreased in recent

!earsB


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Su"stantial increase in rates of #ay

Infation over the past 12 months

The Retail Drice >nde" 0RD>1 is the onl! in*ation measure for negotiating pa!# 0RD>

is also used to calculate inde".linked goernment bonds, priatel! issued inde".

linked bonds, National Eaings and >nestments, Forporation Ta", business rates,

'lcohol (ut!, Tobacco (ut!, Gaming (ut!, 'ir Dassenger (ut!, Flimate Fhange

Le!, car and an 7uel 4ene-t Fharge, regulated rail fares, regulation of water

and sewerage charges, inde"ation of 4ritish Telecoms wholesale charges and

interest pa!ments on student loans1# RD>, which includes housing costs and

e"cludes high earners spending, stood at 1$%for the !ear to (ecember )9/#

The Fonsumer Drice >nde" 0FD>1 is designed for comparing di+erent 2U countries

economic performances and not for internal UH purposes# >t e"cludes housing

costs 0though includes stockbrokers fees and foreign students uniersit! tuition

fees1, is calculated to a mathematical formula less responsie to price

*uctuations and doesnt adeIuatel! re*ect changes to ordinar! workers cost of

liingB so sa!s the Ro!al Etatistical Eociet!# FD> stood at 9#3= for the !ear to

(ecember )9/#


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'ccording to the $NE oer the !ears )99 . )9), the aerage weekl! household

e"penditure in the UH was ;/


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The ta" changes introduced throughout the Foalition goernment continues to

undermine our members incomes and spending power# The >nstitute for 7iscal

Etudies table below shows the impact of the )9/ budget and how the poorest

households hae lost the most of their income oer the life of this goernment#


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>n addition, the $NE has found that people on lower incomes continue to pa! a

disproportionatel! higher amount of ta" than those on aboe aerage incomes#

>n )99., the bottom -fth of households paid = of their disposable income

in indirect ta"es, compared with = for the richest -fth, increases of = and =

respectiel! on )[email protected]#

7ood prices

1Dg 5httpB::www#ons#go#uk:ons:dcp666


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The following chart from National Etatistics shows the increase in food prices

since @


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7ood prices hae risen in real terms b! )= since )996 causing additional

su+ering to hard working families# The shocking state of 7ood poert! in the UH

is now well documented and the eidence suggests that while the cost of liing

crisis has hurt eer! socio.economic group, it has been a disaster for the poorest#

The number of 4ritish households falling below minimum liing standards has

more than doubled in the past 9 !ears, despite the siKe of the econom!

increasing twofold, a recent stud! on poert! and depriation in the UH said)#

>t showed = of households endure below.par liing standards ? de-ned as

going without three or more basic necessities of life, such as being able to

adeIuatel! feed and clothe themseles and their children, and to heat and insure

their homes# >n the earl! @t

suggests that one in three people cannot a+ord to heat their homes properl!,

while / million adults and children are not able to eat healthil!#

2httpB::www#poert!#ac#uk:take.part:eents:-nal.conference
http://www.poverty.ac.uk/take-part/events/final-conferencehttp://www.poverty.ac.uk/take-part/events/final-conferencehttp://www.poverty.ac.uk/take-part/events/final-conference


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The proportion of income that the poorest households spend on necessities rose

b! nine percentage points between )99 and )9), in the biggest rise endured

b! an! economic group#

$ther -gures published as part of the same report include the claims that 3#3

million adults go without essential clothing% that )#3 million children lie in damp

homes% that #3 million children lie in households that cannot a+ord to heat

them% that one in four adults hae incomes below what the! themseles consider

is needed to aoid poert!, and that more than one in -e adults hae to borrow

to pa! for da!.to.da! needs#

Drof (aid Gordon, from the Townsend Fentre for >nternational Doert! Research

at the Uniersit! of 4ristol, said about the -ndingsB The aailable high.Iualit!

scienti-c eidence shows that poert! and depriation hae increased# The poor

are su+ering from deeper poert! and the gap between the rich and poor is

widening#


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2nerg! Drices

This chart shows aerage standard domestic energ! bills, in cash terms,

produced from aerage domestic electricit! and gas bills#

Fombined gas and electricit! bills are estimated to hae grown b! ;6< 05#/ =1

between )9) and )9 to ;,95# Eince )996, bills hae grown b! ;/39 03 =1#

Eince )996, prices in real terms hae increased b! =#

3httpsB::www#go#uk:goernment:uploads:s!stem:uploads:attachmentJdata:-le:)@59:2DJMarchJ)9/#pdf
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/296011/QEP_March_2014.pdfhttps://www.gov.uk/government/uploads/system/uploads/attachment_data/file/296011/QEP_March_2014.pdfhttps://www.gov.uk/government/uploads/system/uploads/attachment_data/file/296011/QEP_March_2014.pdfhttps://www.gov.uk/government/uploads/system/uploads/attachment_data/file/296011/QEP_March_2014.pdf


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The current situation with regard to energ! prices continues to hae a signi-cant

impact on RMT members abilit! to keep their homes heated#

ousing

RMT members wishing to purchase their own home continue to face e"cessie

cost barriers which nothing short of a substantial increase in their rates of pa!

can address# UH house prices increased b! @#@= in the !ear to 'pril )9/#

'lthough house prices are increasing strongl! across most parts of the UH it was

prices in London again fuelling the highest growth with rises in London 0


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The aerage cost of renting a home increased b! )#@= during 'pril )9/ to ;


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Greater London saw monthl! and annual increases in aerage rents of )#/= and

@#/= respectiel! to ;,/< per month ? the highest amount on record# >t is

currentl! @5#)= more e"pensie to rent a home in the capital than the rest of the

UH 0when the Greater London -gure is remoed1, fuelling ineIualit! and

preenting our members in London from bu!ing their own home# The National

ousing 7ederation also published a stark report in $ctober )9), Home Truths/,

which found that the cost of renting a home on the priate market in 2ngland

had increased b! 6= in the last -e !ears to )9) and predicted a 3=

increase oer the ne"t si" !ears# The number of people with Aobs forced to claim

ousing 4ene-t hit record leels according to the latest -gures making a

mocker! of the so.called fall in unemplo!ment# The number of in.work ousing

4ene-t claimants now stands at oer #9/@ million, the highest -gure on record#

>n Ma! )99, when this Goernment came into power, the number claiming this

bene-t was Aust oer 539,999# ousing 4ene-t is probabl! the best indicator of

how man! people in the UH are poor# 'ailable to those in or out of work, as well

as pensioners, the onl! criteria are being a tenant on a low income and haing

low, or no, assets or saings# 2en those with Aobs on ousing 4ene-t will hae

a disposable income little higher than someone on out of work bene-ts, as the

bene-t is reduced as earnings rise# 'll of the ousing 4ene-t bill goes to

landlords, and the rates are capped at the bottom 9= of properties in the local

rental market#

4httpB::www#housing#org#uk:D(7:omeTruths)9)J2ngland#pdf
http://www.housing.org.uk/PDF/HomeTruths2012_England.pdfhttp://www.housing.org.uk/PDF/HomeTruths2012_England.pdf


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RMT members access to a+ordable housing is seerel! restricted and worsening#

>n late )9, there were /#3 million people on the waiting list for social housing3

!et, in the months to Oune )9) there was a )/= drop in the number of new

homes, with the suppl! of a+ordable housing particularl! badl! a+ected#5This is

a direct result of the 5= cut in goernment spending on a+ordable housing

announced in the )99 Fomprehensie Epending Reiew#

This to"ic combination of rising rents, pa! stagnation, cuts to in.work bene-ts

and a falling suppl! of a+ordable housing should be combated b! a substantial,

aboe in*ation pa! rise for RMT members and their colleagues#

5httpB::www#housing#org#uk:media:factsJandJ-gures#asp"6httpB::www#insidehousing#co#uk::53))@


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Fost of childcare

The increase in child care costs is haing a seere impact on RMT members with

!oung children# Dart.time childcare costs for a famil! of two children hae

oertaken the aerage UH mortgage bill b! /#6 =, according to new research

from the 7amil! and Fhildcare Trust#6

The 7amil! and Fhildcare Trusts annual childcare costs report shows, for a famil!

of two children, the cost for one child in part.time nurser! care and one in an

after school club is ;6,3/@ a !ear# This compares to the aerage UH mortgage

cost of ;6,)96# The cost for the same famil! needing full.time childcare would

amount to a staggering ;,699 a !ear, 5) = higher than the aerage UH

mortgage#

7http://www.familyandchildcaretrust.org/childcare-costs-sureys
http://www.familyandchildcaretrust.org/childcare-costs-surveyshttp://www.familyandchildcaretrust.org/childcare-costs-surveyshttp://www.familyandchildcaretrust.org/childcare-costs-surveys


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Fhildcare costs are also outstripping other household bills# Twent! -e hours of

childcare in a nurser! for a child under two costs an aerage of ;9@#


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7ares prices though hae risen much more steepl!# There are man! di+erent

t!pes of rail fare and a number of wa!s of measuring the increases# Looking at

fares as components of the RD> shows that aerage rail fare prices hae

increased b! around 59= in a decade and aerage bus:coach fares hae

increased b! 55=#

Looking further to the (epartment for Transports bus statistics shows that

Londons local bus fares hae risen b! f !ou lie and stud! in London, it has been estimated that !ou

should e"pect !our total aerage e"penditure to be ;),3) each academic !ear#

This breaks down as followsB


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;9, for course costs

;,


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Reduction in t'e (or)ing (ee)

The RMT continues to campaign for a better work.life balance for its members#

7ull.time emplo!ees in the UH work for the third.longest amount of time in the

2U, completing an aerage of /)#6 hours a week compared to the 2U aerage of

6#/ hours, according to the $Qce for National Etatistics#@'s a result of the

RMTs campaigning, the maAorit! of T$Fs and infrastructure companies now

operate a 3.hour working week and seeral bus, cleaning and catering

companies hae followed suit#

While the Union is pleased with the progress made, we are still campaigning for

further improements in the form of a / da!, ).hour working week 0with a pro.

rata decrease for part.time workers1# This should take place at the earliest

opportunit! and without loss of pa!# >ncreased time awa! from the workplace is

crucial in a safet! critical industr! like the Underground where the need for

proper rest and recuperation is a priorit!#

#http://www.ons.go.u"/ons/dcp171776$24725#.pdf
http://www.ons.gov.uk/ons/dcp171776_247259.pdfhttp://www.ons.gov.uk/ons/dcp171776_247259.pdfhttp://www.ons.gov.uk/ons/dcp171776_247259.pdf


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Progressive *family+friendly, #olicies

>n order to ensure that parents and carers are not disadantaged in the

workplace and to promote a better work.life balance, the Union is seeking an

improement in 8famil!.friendl! policies across the board# Maternit! and

paternit! leae can onl! be a real and a+ordable option for our members when it

is paid at the indiiduals ullrate of pa!, based on aerage earnings rather than

basic pa!#

$ne of the most progressie agreements secured b! the Union is with Northern

Rail which proides for @ weeks at full pa!# Metronet o+ers / weeks maternit!

leae at full pa!# $ur agreement with Merse!rail a+ords one of the best paternit!

leae arrangements with weeks paternit! leae at full pa!# $ther good

e"amples of parental leae policies, outside the transport industr!, are proided

b! 'ccenture which o+ers maternit! leae at full pa! for @ weeks with no length

of serice reIuirement, and the National Trust which also o+ers @ weeks

maternit! leae at full pa!# oweer the UH currentl! ranks tenth in Eae the

Fhildrens Mothers inde" and RMT are seeking an increase in full pa! entitlement

to 3) weeks to ensure all children receie the best start in life#9

We are also seeking improements to both maternit! and paternit! leae

arrangements for all workers# We also maintain that all Darental Leae should be

paid, aailable from the -rst da! of emplo!ment and should appl! to all workers,

not Aust emplo!ees, whether contracted or full! emplo!ed b! the compan! and

regardless of length of serice and in line with best practice#

1%

http://www.saethechildren.org/atf/cf/&7'#def2e(e-1%ae-432c-#(d%-df#1d2e(a74a&7)/*+,+--+0-)*-+0*-+-2%12-,.)
http://www.savethechildren.org/atf/cf/%7B9def2ebe-10ae-432c-9bd0-df91d2eba74a%7D/STATE-OF-THE-WORLDS-MOTHERS-REPORT-2012-FINAL.PDFhttp://www.savethechildren.org/atf/cf/%7B9def2ebe-10ae-432c-9bd0-df91d2eba74a%7D/STATE-OF-THE-WORLDS-MOTHERS-REPORT-2012-FINAL.PDFhttp://www.savethechildren.org/atf/cf/%7B9def2ebe-10ae-432c-9bd0-df91d2eba74a%7D/STATE-OF-THE-WORLDS-MOTHERS-REPORT-2012-FINAL.PDFhttp://www.savethechildren.org/atf/cf/%7B9def2ebe-10ae-432c-9bd0-df91d2eba74a%7D/STATE-OF-THE-WORLDS-MOTHERS-REPORT-2012-FINAL.PDFhttp://www.savethechildren.org/atf/cf/%7B9def2ebe-10ae-432c-9bd0-df91d2eba74a%7D/STATE-OF-THE-WORLDS-MOTHERS-REPORT-2012-FINAL.PDF


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The current proision allowing for the taking of standard Darental Leae onl! in

blocks of one or more weeks is too rigid# The minimum leae period it is possible

to take at one time, should be reduced to one da!, thus allowing parents greater

*e"ibilit!# 7inall!, the leae entitlement should last until the childs 5 thbirthda!

0it is alread! < for disabled children1#

Full travel facilities for all

The two.tier trael facilities proision for the workforce is a great source of

bitterness amongst transport emplo!ees# ' member might hae spent the last

decade working alongside a colleague doing e"actl! the same Aob, !et one

receies the full entitlement because he or she is directl! emplo!ed b! LUL but

the other does not#

Not onl! are the! aggrieed, the! are perple"ed . the RMT has continuousl!

highlighted the nominal cost to the emplo!er of e"tending full trael facilities for

all# >n these circumstances, there is no logical reason to withhold the bene-t from

some emplo!ees# ' reasonable solution could easil! be obtained with the will of

the compan! to do so#

>n )99/ London Underground agreed to reimburse all emplo!ees who Aoined post.

'pril @@5, 63= of the cost of an annual season ticket on national rail serices#

This agreement, though welcome, was an interim agreement and it is time for it

to be substantiall! improed b! a moe to full parit!#


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Conclusion

$er the course of this submission we hae illustrated how oer recent !ears a

combination of the preailing economic climate and weak wage growth has

negatiel! impacted upon our members pa!#

With the economic recoer! slowl! beginning, it is now time that our members

wages caught up with the cost of liing# >n a recent report the igh Da! Fentre

notes that since the late ninet!s 2"ecutie pa! has grown from 59 times that of

the aerage UH worker to nearl!


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Underground Ltd will make eer! e+ort to address our claim in full during this

pa! round#

rmt pay claim 2015 - london underground

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