I suppose you could argue that the above-inflation increases to the National Minimum Wage have been a "race to the top"?
'Race to the bottom' is a term used by the most stupid union leaders who don't know a thing about the operational side of a business and then their members start repeating it like sheep. How can you be racing to the bottom when your pay is increasing?
Agreed - I wish we could have one of these threads without the "race to the bottom" cliché being trotted out.
Northern's statement says it is 2% this year followed by RPI+0.1% for two/three years after that.
From yesterday:
RMT General Secretary Mick Cash said:British passengers are paying the highest fares in Europe to travel on rammed services while the private train companies are laughing all the way to the bank. Companies like Southern Rail and their French owners are siphoning off cash to subsidise rail services in Paris and beyond."It's a national scandal and will only be stopped through public ownership of our railways."
https://www.rmt.org.uk/news/rail-fare-increases030117/
So they are complaining about fare rises and the subsidies for rail franchises being too high one day and then demanding better pay rises for one of the most heavily subsided franchises the next day. :roll:
It is the April 2016 pay deal that they put forward in September/October (not sure exactly when).
The offer is rpi +0.1% for each year, for 3 years with an option for a 4th year.
The first year is stated as 2% because rpi was 1.9% in 2016, I think they say it's whatever rpi is in January of each year.
Can't speak for anyone else but I don't think it's a completely terrible offer but no one wants 3 or more years.
I'm not in the rmt so can't vote in their ballot, but I'm in favour of action short of a strike, but would vote against full strike
An annual pay rise of RPI +0.1% sounds reasonable to me - it's guaranteed to see pay increase faster than inflation, it'd avoid the predictable hassle of renegotiating salary each year (with the threat of strikes).
But then, if you have pay negotiations settled for the next three years then that removes some of the need for Unions to argue on their members behalf on an annual basis, so is this partly because the Union would rather have an argument each year (than get their members signed up to something giving guaranteed RPI + 0.1% for future years, which means less requirement for Unions)?
As a non-rail employee, I think that it sounds a reasonable enough figure, and is in line with ticket prices. Makes sense to me.
Arriva's profit last year rose to £350m, a 7% increase. Why shouldn't the people who do the grafting get rewarded for it?
...so if Arriva's profits go down then staff should take a lower than inflation settlement, or even a reduction in pay?
Be careful what you wish for.
It does beg the question, if franchises like Northern are such bad loss makers that have to be propped up by grants / subsidies, why on Earth do companies line up to bid for them let alone offer substantial investment?
Call me a cynic, but if these really are loss makers with no hope of profits and the risk of future subsidies being lowered or removed, no company would touch them with a barge pole. Unless of course there is a bit of <cough> creative accounting going on, a bit like those poor energy companies who struggle so to make a profit (unless you dig a little deeper and find the accounting trail). Three decades of public service, often working with private sector partners, has taught me not to listen to the headline figures. That's all I'm going to say on that....
Lots of government tenders are "loss making" but see a number of companies bid to do them - emptying bins is loss making, building schools is loss making, maintaining highways is loss making - it just depends what "premium" you can charge above the expected cost of providing the service required in the contract.
And, as running a railway franchise is a lot more complex than some things that the Government tender for (e.g. office cleaning), there are fewer organisations capable of meeting the requirements, which means they face less competition.
No need for conspiracies.
I don't think this 'benchmark' is connected to the National Minimum Wage - I'd be surprised if any of the RMT people being balloted are on the NMW, but I'm happy to be corrected if that is the case.
I'm unsure what this "benchmark that the union has set elsewhere in the rail industry" as the RMT describes it is - is it an expected % pay rise, or a minimum salary, or something else? Maybe someone who knows could advise?
Good question.
I personally think that something guaranteeing a real terms pay increase each year is a sensible benchmark (RPI + 0.1%?).
There's an argument for linking pay to ticket prices.
But, otherwise, the RMT are going to pick the highest increasing figure out of dozens (the rise in the National Minimum Wage, the rise in profits at the parent company, the increase applied to other TOCs...).
It's a bit like the ticket price arguments. It's not great to be increasing ticket prices faster than average wages are increasing, but something around RPI seems a fair unarguable benchmark. If you want to increase ticket prices in line with wage rises, then are you okay with ticket prices going up faster than inflation when the economy is booming (which is bad news for pensioners/ students/ economically inactive people who aren't seeing inflation busting increases in their incomes).