NETWORK RAIL OFFERS FAIR DEAL

Thursday 17 Apr 2008

NETWORK RAIL OFFERS FAIR DEAL

Region & Route:: National

Network Rail today reacted to the news from the RMT that it was balloting for industrial action over pay for its signallers and other supervisory, clerical and support members.

Peter Bennett, Director of Human Resources, said: "A very fair and reasonable offer is on the table (4.8% increase this year and RPI + 0.5% next year) one that people in any walk of life would recognise as a good deal. But the RMT want even more. Their demands are unreasonable.

"We would ask all our employees to carefully consider the offer on the table that compares very favourably with wage settlements across the country. We'd ask that they use their vote to turn away from damaging industrial action.

"There will be no public sympathy when such a reasonable deal is on the table especially as we have already tried to break the negotiating deadlock by improving the offer. We have no-where left to go as our best offer is already on the table but even so, our door remains open to resolve this matter."

Notes to editors

· Network Rail is offering employees a pay increase above the cost of living for each of the next two years. The average signaller would be £1,252 better off after the first year of the two-year pay increase Year One Pay increase: 4.8% Travel subsidy: April 2008 – increased to 50% London Allowance: Unchanged Year Two Pay increase: RPI + 0.5% Travel subsidy: April 2009 – increased to 60% London Allowance: April 2009 – Raise Inner London Allowance by almost 7% • There are 6,000 signallers nationwide covered by this pay deal. Approximately 4,500 are RMT members • The average signallers earns £26,089 but higher grade signallers can earn up to £50,000 • The deal is based on higher benchmark of inflation - RPI, not CPI • The deal compares very favourably with other pay awards: Pay increase % Network Rail 4.8 BT employees 4.7 Average Earnings (in the year to January 2008: Office for National Statistics) 3.7 Police, Nurses, Firefighters 1.9 • To break the deadlock, Network Rail had proposed to increase the first year pay to 4.9% on the condition that the RMT and TSSA accepted the award without going to strike ballot. Because they walked away the offer now reverts back to the original pay award, i.e. 4.8% • Network Rail recognises that a signallers strike would have a very severe impact on rail services. Despite contingency planning, only a small percentage of services would run • Passengers and freight users would suffer the most if a strike went ahead and it would cost the company £millions per day - money it can ill afford to lose. It would mean less investment in the network but conversely it can ill afford ridiculously high pay settlements that would increase the annual wage bill by similar amounts

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