Manchester: Update to Employees on 2012 Pay Review

Further to our update on 6th June, pay negotiations have continued and the company has made a second pay offer to UNITE, based on the approach to the pay review being taken nationally as set out in Ella Bennett’s notice yesterday.
You can read a copy of the offer here on CafeVIK which shows as tracked changes from the current Manchester Pay And Benefits Agreement. Some sections may be easier to read if you hide the tracked changes. In recent versions of Word you can hide these by going to the “Review” option on the ribbon and changing the drop-down option in the “Tracking” panel from “Final Showing Markup” to “Final”.
UNITE members will be debating and voting on the offer at their members’ meeting:

1:30 – 3pm, Friday 22nd June
MAN35 canteen

To ensure the meeting is fully representative all UNITE members are encouraged to attend and managers are encouraged to facilitate release.
If the offer is accepted, the agreement will be implemented. If UNITE members decide to reject the offer, negotiations will continue at stage 3:

  • Negotiations: Monday 2nd and Tuesday 3rd July
  • Company offer to UNITE by: Friday 6th July
  • UNITE members’ meeting and response to offer Friday 13th July

In this table we have summarised the company offer alongside UNITE’s claim:

UNITE pay claim Summary of company offer 21st June 2012
This claim is for an updated version of the Manchester Pay And Benefits Agreement.

At the time of writing, the current version of the agreement was effective 22nd July 2011. However, it is anticipated that prior to the conclusion of 2012 pay negotiations the agreement will already have been updated to incorporate points relating to Rise+ and a number of less significant changes. For this reason, the claim refers to the headings of the agreement rather than section numbers, which could change.

An updated version effective 14th June 2012 was agreed and is being used as the baseline for negotiations for a new version including the August pay review.
  1. For “Appendix 1”, points for the 2012 pay review:
  1. All pay rises to be fully consolidated
  1. A substantial budget for the pay review
The budget is 2.5% nationally, which due to the population mix in Manchester would mean a spend of approximately 2.6% for Manchester
  1. Most of the budget to be spent on a substantial cost of living element, expressed as a £ value
The offer does not include a cost of living increase for everyone. However, it would mean a pay rise for all employees other than those with a “U” PAC rating.
For employees currently with full-time equivalent salaries of under £55,000 the rises would be (subject to slight smoothing):

Pay Bands for Flat Rate Increases
Salary From Salary To % Increase
£17,999 5%
£18,000 £23,999 4%
£24,000 £39,999 3%
£40,000 £54,999 2.25%
  1. Additional increases, expressed as £ values, for those with A, NS, E and O PAC ratings
The company is offering a PAC-related increase only for employees on over £55,000, for whom a 1.5% budget will be distributed as follows:

PAC Increase
O 8 x £amount
E 4 x £amount
A or NS 2 x £amount
P 1 x £amount
U £0
  1. Any part of the budget over 3% to be spent at local managers’ discretion
The company is not offering a budget of over 3%, and not proposing an element at local managers’ discretion.
  1. Increases (outside the pay budget) to bring everyone up to their lower comparator
  1. Increases (outside the pay budget) to address progression anomalies within a role, based on their last three (non-NS) PAC ratings in their current role. For example someone with 3 PACs of A or above should be on at least the median, someone with 3 PACs of E or above should be on at least 110% of the median, someone with 3 PACs of O should be on at least 120% of the median
  1. An annual option for individuals to “sell” bonus entitlement in exchange for increased basic pay
  1. For roles with no median, a comparator should be defined for the purposes of the pay review
  1. For “Appendix 2”, for the Rise+ pay system:
  1. Service desk employees are typically taking on more technical duties, work and skills are being “moved to the left” and staff are increasingly expected to multi-skill across contracts. Meanwhile the D1-D4 pay rates declined rapidly in real terms. From their introduction in 2001 they have only been increased twice. For TSS1 D1 for example, the scales have had a total increase of just 3.6% over 11 years. Many service desk staff are paid well above the pay bands, making the bands decreasingly useful. The increase in some scales with the move to Rise+ is welcome, but only affects a minority. A substantial increase in the Rise+ pay scales is required.
Increases proposed of between 4.69% and 9.72% compared to the 2011 D1-D4 scales.
The company believes that most people will be paid within the new bands for their Rise+ level but is not guaranteeing this will occur in every case.
  1. The agreement should be applied to Temporary and Agency workers as well as directly employed staff.
The company has reviewed the Agency Workers Regulations, believes it complies and does not believe it appropriate to refer to agency workers in the agreement as these individuals are not Fujitsu employees, so proposes to remove the commitment to a review from the agreement though discussions continue in the Joint Working Group. UNITE remains concerned about the company’s implementation of the regulations.
  1. For the “Median Salaries” section:
  1. All pay and benefit scales, guidelines and comparators to be published.
  1. For the “Pay Comparators” section:
  1. Increase the minimum basic salary from £13,500 to £15,000 a year, to be comparable with the Minimum Income Standard for the UK for a single person of working age with no children. Increases to bring people up to this level should be funded outside the pay budget.
Increase to £14,500
  1. Nobody should be paid less than 5% of the highest salary in the company (a 1:20 ratio).
  1. Increase lower comparator to 80% of median.
Not in 2012
  1. Agree a plan with timescales to move away from internal comparators to a pay policy which ensures equal pay for work of equal value.
  1. For the “Appraisals” section:
  1. Objectives and targets must be agreed and be set so that they can realistically be achieved or exceeded without relying on working additional hours.
The offer includes “Objectives and targets must be agreed and be set so that they can realistically be achieved or exceeded”.
  1. Employees should be informed of their provisional PAC rating in writing before moderation.
This is not in the offer, but the company has no policy which prevents this.
  1. Employees recorded as “NS” will be treated for the purpose of pay reviews as “O” unless it can be shown that this was not due to a failure on the part of the company, for example to allocate a suitable appraising manager or to hold an appraisal.
No, they will be treated in the same way as an “A”.
  1. The company should involve UNITE in monitoring completion of appraisals to help minimise the number not completed in time for the pay review.
The company will consult UNITE about updating the appraisal process and timescale and agree revisions to the timescale for pay negotiations in Appendix 4 before the end of 2012.
  1. For the “Role Code Changes” section, being on the wrong role code can cause serious detriment in pay reviews. Introduce a fair and objective process with clear criteria for employees to appeal if they believe they have been doing work which matches a different role code better than the one they are on.
Section 10 of the offer provides further clarification on how to determine the correct role code, the process employees should follow and how such situations are resolved.
  1. For the “Promotions” section, add a guarantee of a rise of at least a specified percentage on promotion.
  1. For the “Pay for Non-Standard Hours and Your Choices” section:
  1. Standard working hours reduced to 37 in the remaining areas without loss of pay.
No, the company proposes the standard weekly working hours should remain as 40 for:

  1. TSS/1 in End User Services – Engineering Services, and
  2. TSS/1, TSS/2 and TSM/1 in Region 1 Service Desks
  1. All employees currently contracted to work longer hours than the standard for their area to have a reduction in their contracted hours to the standard without loss of pay.
The company and UNITE will complete by September 2012 the review that has already resulted in many staff having a reduction in hours.
  1. Any individual receiving an annual pay rise less than the year-to-March RPI inflation to have a corresponding reduction in their contracted hours. Employees receiving rises greater than RPI inflation to have the option of trading some of their increase for a corresponding reduction in hours.
  1. For the “Other Benefits” section:
  1. Agree minimum benefit levels for each role and address anomalies below these levels.
No, but the existing company commitment to a review in the agreement stands
  1. Open discussions about including benefit cars in the company-wide Choices scheme so that all employees could cheaply lease a car through the company and pay reviews could take account of both pay and benefit cars when comparing levels of remuneration.
No, but the company has other discount schemes available
  1. Commit to offering “double matched” contributions (at least up to 5% employee, 10% employer) for employees auto-enrolled into a pension scheme.
No, the company believes it is too early to commit to anything on this

We will continue to keep you updated throughout the process.

Fujitsu negotiating team:
Catherine Kelly
Ellie Sims
Richard Batty
Stuart Chadwick

Unite the Union pay & benefits team:
Ian Allinson
Lynne Hodge
Mark Norman
Pauline Bradburn
Phil Tepper
Posted in news
'Fujitsu Whistleblower' hotline. Concerned about unethical or illegal practices? Contact the hotline on 0800 852 7479 or It is run by Unite the Union and your identity will be kept strictly confidential. Don't let Fujitsu silence whistleblowers.

Unite members working for Fujitsu Services Limited in the Manchester bargaining unit have taken 32 strike days over compulsory redundancies, victimisation of reps and breaches of agreements. This follows 27 previous days of strike action.

Industrial action is currently suspended but the fight continues.

Further information is available here including a downloadable appeal for support leaflet and how to donate to our strike fund.

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