CONTRACTORS MODEL PAY CLAIM
Please note: This model pay claim has been written to assist branches who may have to negotiate
on pay at a local level with private contractors. This kind of local pay negotiation may well
become more common following the Alemo-Herron judgement and recent changes to TUPE
regulations.
This pay claim is intended to be subsidiary and complementary to national public sector pay
agreements/negotiations/processes (such as Local Government NJC and Agenda for Change).
Using this model pay claim
This model pay claim provides a framework for you to use in pay negotiations with private and
community and voluntary sector organisations at a local level. You should feel free to change, add
or delete sections as required.
Text in square brackets [like this] is for guidance or for you to add in information which is
particular to this claim. Bracketed text will also tell you where to find the information included in
the claim and how to update or adapt it. Obviously, these guidance notes are for your use only.
Make sure that you delete them from the final version of the claim that you submit to your
employer!
While it is always good to have a well researched, professional looking claim, the most important
thing is to use pay negotiations as an organising and recruitment opportunity. Make sure that you
involve as many of your members as possible in preparing for negotiations. Hold meetings to
consult on the content of the claim. Set up a working group to research the issues and develop
bargaining proposals. Use the issues raised in your negotiations to recruit new members. You will
be most effective if your employer knows that the membership is fully involved and solidly behind
you as their negotiators.
Advice Notes on Drawing Up a Pay Claim
1. Planning
Plan in advance and consult fully with the members. The starting point should be approximately 3
months in advance of the annual settlement date – also it is a good idea to have an input into the
annual budget setting exercise.
2. Information in the Claim
A pay claim should take account of the following:
-
Current pay awards in the sector
Average Earnings figures and forecasts
Inflation (always focus on RPI, not CPI, partly because it includes housing costs)
Economic Indicators
Background information on conditions issues, such as annual leave, travel allowances and
family friendly provision
Information you can seek from your Employer
-
Last Year’s Pay Award
Turnover projections
Impact of restructuring/reorganisation
-
Pay bill and Gender Breakdown
Annual Accounts
Directors Pay Awards
Accessing information
You can request information directly from the employer, and if you have recognition the employer
has a legal duty to provide bargaining information including on pay, conditions of service, staffing
levels and financial information. See the ACAS code of practice on
http://www.acas.org.uk/media/pdf/2/q/CP02_1.pdf
The Information and Consultation of Employees (ICE) Regulations can give workers the right to be
informed and consulted about an employers current situation and future plans. You can view a
factsheet on the ICE Regulations here: http://www.unison.org.uk/for-activists/help-andadvice/supporting-members/negotiating-and-bargaining/in-depth-guides/
You can also access further background information about individual companies (such as press
stories, registered accounts and contract awards) by emailing UNISON Bargaining Support at
bsg@unison.co.uk
3. Consultation with members
Above all keep the members informed and on board – this strengthens your position. You may
want to consider setting up a working group to put forward negotiating proposals. Use the pay
consultation as an opportunity to recruit new members.
4. Training
Training on negotiating skills is available via your regional office.
PAY CLAIM FOR [INSERT YEAR]
SUBMITTED BY UNISON TO [NAME OF ORGANISATION]
INTRODUCTION
This pay claim is submitted by UNISON on behalf of staff working for [Organisation].
UNISON’s claim seeks to achieve the following:
-
A pay rise to help restore and maintain living standards of staff in the face of significant
rises in the cost of living.
-
Appropriate reward for the hard work our members have put in to provide quality
services, boosting the reputation of [Organisation].
-
Reward for the increasing levels of stress faced by front line workers arising from
[important elements of job, e.g. increasing number of clients, reduced funding per
client]
-
[If you have decided to ask for a Living Wage, otherwise delete] a settlement which
ensures that nobody is paid less than the nationally recognised Living Wage rate.
UNISON is therefore submitting the following claim for [year] which seeks to improve and
enhance the morale and productivity of these staff. Meeting our claim will give the
[Organisation] the opportunity to demonstrate its commitment to creating a workforce which is
well-paid and high in morale and productivity. The claim is straightforward and realistic.
SUMMARY OF CLAIM
We are seeking:
-
A [__%] cross the board increase on all salary points and allowances
[any other additions in payments or conditions]
BACKGROUND TO THE CLAIM
A substantial increase will help restore and maintain living standards of the staff who have seen
their pay eroded considerably in recent years
[Where appropriate insert details from consultation – this need only be brief and draw
reference if appropriate to the previous years pay offers if they have been low, any changes to
working practices that have taken place, also again if appropriate if the settlement of the
previous years award was late.]
The greatest asset of the [Organisation] are its employees. Staff are looking to this pay round for
evidence of the value which the [Organisation] places upon them.
This claim is both realistic and fair. The following gives full justification for the claim. UNISON
hopes that the [management board] will give this claim the full consideration and response which
the staff expect and richly deserve.
COMPARATIVE PAY
[Organisation] staff have endured years of comparatively poor pay settlements, as the following
data clearly indicates. [Delete if not applicable]
COMPARISON WITH AVERAGE EARNINGS AND INFLATION
[Organisation] pay
increases
Retail Price Index
rise for year (April
to April)*
Median gross weekly
earnings (Increase to
April, taken from
ASHE)*
2010/11
0.00%
5.20%
0.40%
2011/12
1.00%
3.50%
1.50%
2012/13
1.00%
2.90%
2.20%
*Source: Office of National Statistics, www.statistics.gov.uk
Between 2006 and 2009 pay in [Organisation] rose by only [__ %] ,falling behind the rise in
average earnings, which grew by [__ %] and inflation which rose by [__ %] This represents a fall in
real living standards for [Organisation] employees.
PAY AWARDS
The median of pay settlements in [insert sector] was [__ %] in the year to [insert year]. [Add
additional commentary on the need to complete with other employers to avoid issues with
recruitment and retention, if you feel this is appropriate]
[Up to date data for this section can be obtained by contacting UNISON Bargaining support at
bsg@unison.co.uk]
Organisation
SubSector
name
United
Society for
the
Propagation
of the
Gospel
Royal Star
and Garter
Home
Effective date
Numbers
%
Comments public
Increase
Advice &
campaigning
01/01/2014
25
2
Care services &
housing
01/01/2014
250
2.5
Wychbury
Care Home
Morrisons
Care services &
housing
Retail
01/11/2013
71
2
07/10/2013
10500
2
Morrisons
Retail
07/10/2013
96000
2.1
Prior’s Court
Care services &
housing
01/10/2013
480
1
Warren Care
Home
Care services &
housing
01/10/2013
30
1.9
Heritage
Manor
Care services &
housing
01/10/2013
120
2
01/10/2013
29
2
01/10/2013
66
2.12
01/10/2013
50
3
3.86
Quarry
Mount Care
Montrose
Care Home
Care services &
housing
Care services &
housing
Care services &
housing
Blue Sky
Care
Care services &
housing
01/10/2013
75
Forestry
Commission
Central government
01/10/2013
2671
1
Halfords
Retail
01/10/2013
1369
1.5
Tiphereth
Hoopers
Department
Store
Retail
01/10/2013
430
1.5
House of
Fraser
Retail
01/10/2013
6532
1.9
Next
Halfords
Retail
Retail
01/10/2013
01/10/2013
36000
7869
1.9
1.94
Argos
Retail
01/10/2013
20000
2
Asda
B&Q
Debenhams
Marks &
Spencer
Retail
Retail
Retail
01/10/2013
01/10/2013
01/10/2013
11075
20370
21100
2
2
2
Retail
01/10/2013
66000
2
on adult established
rate. All adult rates
increased by 14p an
hour
increase only for
employees on the
NMW
increase applies only to
staff earning less than
£10ph
average increase within
a range of 2 to 6%
on paybill. Payscale
revalorisation meant
staff received increases
of between £200 and
£625
average increase. Pay
freeze for those on
market rates; NMW
uplift applied plus
increases to maintain
differentials
NMW uplift and pay
band minimums
increased to maintain
differentials. Pay band
maximums frozen
adult staff in zones C to
F. Zone B rates
increased 2.6%;
supervisors 2.75% and
under 18s 1%
pot for merit rises
average
Marks &
Spencer
Retail
01/10/2013
9600
2
Poundland
Retail
01/10/2013
6500
2
Screwfix
Booker Cash
& Carry
Retail Cooperative
Societies
Retail
01/10/2013
4441
2
Retail
01/10/2013
3000
2.2
Retail
01/10/2013
130000
2.5
budget for
performance rises;
range zero to 4%
on paybill. 16 to 17 and
21+ rates rose by 2%;
18 to 20 rates by 2.8%
and senior sales
assistants by 3.3%
COST OF LIVING INDEX
The Croner Reward Cost of Living Index works out changes in the required income to maintain a
given standard of living. The figures for recent years are given in the table below.
Year
2010
2011
2012
2013
Total
increase in
cost of
living
5.3
5.7
3.9
3.9
INFLATION FORECASTS
[For the most up to date version of these statistics see the document entitled “Economic
materials to support pay claims spreadsheet” which can be found here:
http://www.unison.org.uk/for-activists/help-and-advice/supporting-members/negotiatingand-bargaining/in-depth-guides/ ] The spreadsheet allows you to demonstrate the fall in value
of wages resulting from inflation.
The Treasury average of independent forecasts places RPI inflation in the region of 3% right up
until 2017. The medium term forecast put the expected rates at the following levels.
Year
2014
2015
2016
2017
2018
RPI
forecast
2.8
3
3.2
3.2
3.3
Cumulative increase in
cost of living
2.8
5.9
9.3
12.8
16.5
If these rates turn out to be correct, the cost of living employees face will have grown by 16.5% by
the close of 2018, as reflected by the graph below showing the cumulative impact of inflation
forecasts.
[For the latest update to these figures see the HM Treasury Forecasts for the UK Economy at
http://www.hm-treasury.gov.uk/data_forecasts_index.htm ]
USING RPI
UNISON believes that the Retail Price Index (RPI) measure of inflation represents the best
measure of changes in prices faced by employees, as it includes the housing costs that form a
significant part of most employee’s expenditure, data collection is tied more tightly to working
households than the Consumer Price Index (CPI) and it is based on a less problematic statistical
technique. Therefore, UNISON supports the use of RPI, which remains the most widely used basis
for pay negotiations across the public and private sector1.
AVERAGE EARNINGS
[For the most up to date version of these statistics see the document entitled “Economic
materials to support pay claims spreadsheet” which can be found here:
http://www.unison.org.uk/for-activists/help-and-advice/supporting-members/negotiatingand-bargaining/in-depth-guides/ ]
The graph below shows trends in average earnings growth over the last two years. Prior to
September 2012, private sector average earnings had been growing at or above the rate of public
sector earnings for all but two months.
1
Incomes Date Services, RPI still dominant, November 20134
Source: Office of National Statistics, Labour Market Statistics, January 2014
Forecasts of average earnings predict that average earnings growth will rise to 2.2% over 2014
and 2.9% in 2015. For the latest update to these figures see the HM Treasury Forecasts for the UK
Economy at http://www.hm-treasury.gov.uk/data_forecasts_index.htm
[For the most up to date version of these statistics see the document entitled “Economic
materials to support pay claims spreadsheet” which can be found here:
http://www.unison.org.uk/for-activists/help-and-advice/supporting-members/negotiatingand-bargaining/in-depth-guides/ ]
RECRUITMENT AND VACANCY RATES
With unemployment running at 2.5m in May 2013, the Chartered Institute of Personnel and
Development (CIPD) exposed the scale of competition for vacancies when it reported that 45
applicants were chasing each job that it classified as “low skilled,” there were 29 for every
medium skilled position and 10 for every highly skilled job.
The costs to the employer of losing staff were highlighted in the finding that median
recruitment cost for filling senior manager / director vacancies stood at £5,000 while other
employees cost £2,000 to replace.
The occupations for which organisations are experiencing particular difficulties in recruitment
were highlighted in the table below.
Occupation
Managers and professionals / specialists
Technical
Senior managers / directors
Manual / craft
Services (customer, personal, protective and sales)
Admin & secretarial
% respondents facing
recruitment difficulties
52
46
29
9
7
3
Other
9
The 2013 XpertHR labour turnover report recorded a rise in voluntary resignation rates across
the economy to 10.6% in 2012, with private sector services hitting 12.2%, manufacturing and
production 7% and the public sector 8.1%. The occupations recording the highest resignation
rate were the voluntary sector (13.3%), higher education academic staff (6.7%) and housing
sector staff (6.7%). Average turnover rate (which measures the proportion of employees who
leave an organisation for any reason – resignation, retirement, dismissal or redundancy) was
17% across the economy in 2012. The breakdown with sectors was 19.1% in private sector
services, 12.6% in manufacturing & production and 13.9% in the public sector
MINIMUM WAGE
[For the most up to date version of these statistics see the document entitled “National
Minimum Wage Factsheet” which can be found here: http://www.unison.org.uk/foractivists/help-and-advice/supporting-members/negotiating-and-bargaining/in-depth-guides/ ]
The adult minimum wage rate will be increased to £6.50 in October 2014, from
the 2013-14 rate of £6.31.
Currently the lowest pay point in [Organisation] is [£]– just [£] above the minimum wage
For an employer aiming to provide high quality services, this kind of poverty pay is unacceptable.
It is even more concerning that this is happening in an area with a higher-than-average cost of
living.
12. LIVING WAGE
[For the most up to date version of these statistics see the document entitled “Campaigning,
organising and negotiating for a Living Wage - A UNISON Guide” which can be found here:
http://www.unison.org.uk/for-activists/help-and-advice/supporting-members/negotiatingand-bargaining/in-depth-guides/ ]
The ‘Living Wage’ is increasingly being used to determine the basic level of income required to
avoid poverty and have a ‘low cost but acceptable’ standard of living.
There are two Living Wage rates: one for London and one for the rest of the UK. The London Living
Wage is set by GLA Economics, funded through the Mayor of London. The new rate is £8.80 an
hour. The national rate is set by the Centre for Social Policy Research based at Loughborough
University. The new rate is £7.65 an hour.
It is becoming increasingly seen as unacceptable for employers to pay lower than the Living Wage.
The reputation of [Organisation] is at serious risk of long term damage if it continues to operate
by paying poverty wages.
[Organisation] should immediately increase the lowest pay rates to a level above the current
national and (for London) London Living Wage rates
CONCLUSION
There can be no doubt that all staff working for the [Organisation] have seen their real earnings
fall in comparison both with those doing similar jobs elsewhere. To deliver a quality service the
[Organisation] will have to rely on staff input and the retention of a specialist, skilled, experienced
and dedicated workforce. Competition for that workforce from other sectors is strong.
Despite the difficult financial context of this year’s negotiations, 2010 is the year in which the
[Organisation] can begin to make a real difference to the pay of its staff. This is a fair and realistic
claim which we ask the [Organisation] to meet in full.