RAILWAYS PENSION SCHEMES – 2010 ACTUARIAL VALUATION

#My Ref: MRP: 1/8 15th July 2011

Circular No. NP/132 /11

To: The Secretary All Branches & Regional Councils

Dear Colleague,

RAILWAYS PENSION SCHEMES – 2010 ACTUARIAL VALUATION

As I am sure you are aware the Railways Pension Scheme (RPS) tri-annual actuarial valuation is presently being carried out by the scheme Actuary and as part of this consultation process the RMT, along with other trade unions, has been having discussions with railway management about these results.

The draft valuation results reveal that the majority of RPS sections are in deficit although some are showing a surplus. The Actuary has indicated that like other UK pension schemes which are in deficit this can be contributed to a number of factors, including poor investment returns and improvements in mortality.

As with past valuation, talks between management and the trade unions have centered on the affordability and sustainability of the RPS. The Actuary has outlined a number of options which could be used to reduce each sections deficit, which include further increases in employer and employee pension contributions and benefits changes.

The valuation results for each section are still to be finalised and whilst there has been discussions about reducing future pension liabilities, the RMT’s policy will be to protect existing and future pension benefits.

I would therefore like to remind all RMT representatives that no agreement should be reached on amending contributions or benefits, either through Pensions Committees or in direct discussions with the employer, without prior consent from Head Office. Details of any employer proposals should be forwarded immediately to Head Office.

The RPS 2010 Actuarial Valuation must be completed by 31^st March 2012. If, however, there are any proposed changes to RPS pension arrangements a member consultation period will begin at least 60 days before the 31^st March 2012.

I shall, of course, keep you advised of developments.

Yours sincerely,

Bob Crow,

General Secretary

New Inflation Rates

Tuesday 12^th July 2011

Circular No. National Policy 127/11/MC

To the Secretary all Branches,

Council of Executive members,

Regional Councils and Regional Offices.

Dear Colleagues,

New Inflation Rates

The Office of National Statistics has just published new inflation figures for the twelve months to June 2011.

The Retail Price Index (RPI) for this twelve monthly period is 5%, down 0.2% from the previous figure of 5.2% for the twelve months to May 2011.

The Consumer Price Index (CPI) is 4.2% for the twelve months to June 2011. This is down 0.3% from the figure for the twelve months to May 2011.

By far the largest downward pressure to the change in CPI inflation came from recreation and culture where prices, overall, fell by 0.9 per cent between May and June this year compared with a rise of 0.5 per cent between the same two months a year ago. The fall this year was a record for a May to June period. The main downward effects came from games, toys and hobbies, particularly computer games, and from audio-visual equipment and related products, where price discounting this year of items such as digital cameras, DVDs and televisions contributed to the downward movement.
There were also large downward pressures from:

• miscellaneous goods and services where prices, overall, were little changed between May and June this year compared with an increase of 0.6 per cent between the same two months a year ago. The downward effect came from a wide variety of goods and services with the largest contribution coming from insurance where premiums rose by less than a year ago
• communication, driven by telephone equipment and services, particularly mobile phone charges
• second-hand cars which fell in price this year but rose a year ago

By far the largest offsetting upward pressure to the change in CPI inflation came from food and non-alcoholic beverages where prices, overall, rose by 0.9 per cent between May and June this year but fell by 0.1 per cent between the same two months a year ago. The upward effects came from a wide range of product groups, most notably from bread and cereals, meat, and milk, cheese and eggs. In each case, prices rose this year across a range of products compared with falls a year ago.
There was also a large upward pressure from fuels and lubricants where prices fell this year by less than a year ago. Petrol pump prices fell by 0.7 pence per litre between May and June this year to stand at 135.6 pence per litre. This movement compares with a fall of 2.6 pence per litre between the same two months a year ago.

The next publication date will be 16^th August 2011.

In pay submissions the RMT will continue to emphasise that your financial commitments have increased at a much greater rate than inflation and your living standards have suffered as a result.

Yours Sincerely

Bob Crow,

General Secretary

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Telephone Lines Unity House

Dear all

Please be advised that BT have now repaired the fault and the telephones at Unity House are now working.

Thank you for your patience.

Unity House: Temporary Phone lines

Unity House: Temporary Phone lines

Due to continuing problems with RMT telephone lines, BT have provided a number of mobile phones which have been allocated to each department at Unity House.

While the main switchboard number (020 7387 4771) is diverted to an additional mobile, the switchboard will be unable to transfer calls and will provide the caller with the number for the relevant department.

The numbers are:

• Industrial Relations...07918 778498
• Membership...07918 778164
• Finance...07918 674146
• Personnel & Constitution...07918 693444
• Press/Communications...07918 674157
• National Policy...07918 767901
• South East Regional Office...07918 77867
• Private Secretary...07918 778456

RMT PAY BULLETIN June 2011

Circular No. NP/107/11/MC

15^th June 2011

H.O. Ref: R14/5

TO: ALL BRANCHES, REGIONAL COUNCILS, REGIONAL OFFICES,

COUNCIL OF EXECUTIVES & HO OFFICERS.

Dear Members,

 

RMT PAY BULLETIN

June 2011

The Office of National Statistics has just published new inflation figures for the twelve months to May 2011.

The Retail Price Index (RPI) for this twelve monthly period is 5.2%, unchanged from the previous figure of 5.2% for the twelve months to April 2011.

The Consumer Price Index (CPI) is 4.5% for the twelve months to May 2011. This is unchanged from the figure for the twelve months to April 2011.

The largest upward pressures on the level of CPI inflation came from:

• alcohol and tobacco with the effect coming from wine and beer partially offset by spirits. Prices, overall, of wine and beer rose this year but fell a year ago, particularly for new world wine and lager. Whisky and vodka prices were the main causes of the downward contribution from spirits

• miscellaneous goods and services where prices, overall, rose by 0.6 per cent between April and May this year compared with an increase of 0.2 per cent between the same two months a year ago. The upward effect principally came from appliances and products for personal care

The next publication date will be 12^th July 2011.

In pay submissions the RMT will continue to emphasise that your financial commitments have increased at a much greater rate than inflation and your living standards have suffered as a result.

Recent non-RMT settlements

Company /Sector	Award	Effective From
SKF Bearings	· 4% increase to basic pay	1 Jan 2011
Colt Telecom	· 2% increase to basic pay	1 Jan 2011
Housing 21	· 1% increase to basic pay	1 Apr 2011

Recent RMT Settlements
Company	Award	Effective From
Infrastructure
Volkerail	An increase in annual leave entitlement to 25 days per annum with immediate effect in 2011. A one-year increase in the loyalty bonus of £150 to £425.78. This will apply between 1st April 2011 and 31st March 2012 only.	1 Apr 2011
Babcock	· A basic rate increase of 3% for all employees covered by Procedure Agreement 1 (General Collective Bargaining). This is subject to the following conditions:- Working Away From Home In the first instance, the Company will seek volunteers where working away from home is required. It is expected the existing level of flexibility should resolve most problems. However, in the event there are insufficient volunteers, this will be resolved via discussion with recognised trade unions. Pay Interval All remaining staff that are on full-time employment contracts and currently paid weekly to be paid on a 4-weekly basis as per normal arrangements. The Company will offer the appropriate financial support to allow this small number of employees affected to make the adjustment to 4-weekly pay. Terms and Conditions The Company and Trade Unions will agree an appropriate method for transferring former staff of Jarvis and Carillion and current staff in Plant and Workshop Supervisor grades to standard Babcock Rail terms and conditions of employment. It is recognised that while this transfer will be subject to a positive ballot within each work group, it is a mutual benefit to the Company and the Trade Unions that such a transfer should take place and that every effort will be made to achieve this outcome.	1 Apr 2011
Colas Rail	Two Year Pay Deal · 1st April 2010: 1.5% increase on all base wages · 1st January 2011: 0.5% increase on all base wages · 1st April 2011: 2.0% increase on all base wages ·	1 Apr 2010
Network Rail
Network Rail Operations and Customer Services, Project and Engineering Support Staff and National Functions.	Year One A 5.2% increase (November 2010 RPI + 0.5%) Year Two An increase of November 2011 RPI + 0.5%, with effect from 1st January 2012. General Summary An improvement in travel subsidy facilities to 75%, with a maximum subsidy value of £2250 on all applications from the 1st July 2011 onwards. Olympics Arrangements Summary (Copy attached) · An Olympic premium payment of £3.50 per hour for staff whose duties are affected beyond the normal requirements of their job during the Olympics period. · In certain locations where meal availability is restricted, appropriate meal provision will be made, or Network Rail shall provide a meal allowance of £5 paid net of tax. · Furthermore the union has agreed dispute management procedures for the period of the Olympics and Paralympics. · RMT will participate in an Olympics working group which will discuss the Olympics arrangements in terms of staffing levels, health and safety and explain and discuss the company’s overall plans. More detail can be found in the attached document.	1 Jan 2011
Train Operating Companies & Freight Operating Companies
National Express Baron House Contact Centre Staff	· A one-off payment of £100 (net of tax) to all full time staff with pro rata for part-time staff.	-
First Capital Connect	Year One · Salaries together with dynamic allowances will be increased by 5.5% Year Two · Salaries together with dynamic allowances to be increased by 3% or February 2012 RPI whichever is greater from Sunday 1st April 2012. · Revenue Protection Staff on the GN line of route will be eligible to receive the attendance allowance on the same terms as the allowance is applied to Station Staff on the GN line of route. This allowance will replace the existing revenue protection bonus scheme. The allowance will be dynamic and will be increased in line with the salary review uplift this year. The full year increase available to each member of the Revenue Team will be up to £137.56 taking cognisance of this year’s pay uplift rate. It will be paid pro rata until 31st December and then will be paid on a calendar year basis. · Revenue Control Officers at Luton Airport Parkway who are rostered permanent night shift will receive an allowance of £6.75 per shift and this amount will be back dated to 1st November 2010. · The current attendance allowance paid to Revenue Protection Team (excluding RCOs) on the TL line of route will become dynamic with effect from this year. · An undertaking was given to the Pay Review Committee to consider whether there was any scope for bringing together the terms and conditions of Revenue Protection Staff working on the TL and GN lines of route. · In addition to these matters it was agreed that the use of agency staff will be a standing item on the quarterly Customer Services and Revenue Protection Consultation Committees. · First Capital Connect will undertake to pursue with a medical provider, voluntary health checks such as blood pressure, cholesterol level and weight checks.	3 Apr 2011
Workshop & Train Maintenance
VAE	· An increase of 4% to basic pay, no strings attached.	1 Apr 2011
Bombardier Derby	Year One A 2% increase on the basic rate of pay for Manufacturing Staff, Manufacturing Staff Team Leaders and Manufacturing Staff Trainers. This award to be backdated to 1st January 2011. Year Two A 2% increase on the basic rate of pay for Manufacturing Staff, Manufacturing Staff Team Leaders and Manufacturing Staff Trainers. This award to be effective from 1st January 2012. Plus a further 1% should a contract be signed to supply Thameslink, also awarded from 1st January 2012.	1 Jan 2011
Bus & Road Transport
Stagecoach Eastmidlands, Mansfield & Worksop Drivers	Year One 2nd May 2011 All duties scheduled to take a bus out of depot will be paid 10 minutes to clearly show the first use check. All duties will attract an additional 5 minutes paid allowance at the end of the duty for paying in. 20th November 2011 Grade 1 rate will increase by 15p per hour to £8.85. It should be noted that the paid allowances are in addition to the present arrangements where the time for the task was consolidated into the current rates of pay. Year Two 7th May 2012 Grade 1 rate increased by a further 10p per hour to £8.95. 19th November 2012 Grade 1 rate increased by a further 10p per hour to £9.05. The next pay review would then be due in May 2013.	2 May 2011
Bournemouth Transport	Year One · An increase of 2.7% in all applicable rates Year Two · A further increase of 2.3% in all applicable rates from 1st May 2012.	1 May 2011
Shipping
Hovertravel	A 2.5% increase on basic rates of pay. An additional quarterly bonus payment at 100% which equates to approximately £125 per person.	1 Apr 2011

Yours sincerely,

Bob Crow

General Secretary

McNulty Review into the Railways

Circular number: NP230//11/JC

Reference: NP/P11

To: - HO Officers, Executive, Regional Organisers, Regional Councils & All Branches

19^th May 2011

Dear Colleague,

McNulty Review into the Railways

As you will be aware the Government has today published the McNulty report into the railways.

The union has made numerous representations into the McNulty review. Predictably however the report is underpinned by the same ideology that led to the disastrous privatisation of the railways and seems designed to appease the vested interests of the privatised train operating companies.

Essentially passengers and rail workers are being asked to pay the price of the privatization of the railways.

If the Government implements the McNulty report the railway could be set back for decades. There would be a massive cull in railway staff and attacks on terms and conditions and an increased structural safety risks.

The railway will become even more fragmented and complex and will see a significant shift of power to the privatised train operators. The cost of running the railways would increase with the tax and fare payer having to pick up the bill. Further fragmentation of the industry and attacks on rail workers jobs and conditions could lead to significant and protracted industrial relations problems.

Key points and RMT initial analysis are as follows,

• The report says our railways are 30% less efficient than European Comparators. It says that this inefficiency is cause by lack of government leadership and fragmentation and that closing this efficiency gap will result in savings of between £740million and £1050 million a year by2018/19.

• The report proposed to do this by breaking up Network Rail, longer franchises and attacking staff conditions and paving the way for an attack on regional railways. The report says 35 % of the total savings should come from staff including cuts in maintenance, DOO being the default position for all trains, a review of station staffing and scrapping regulations that protect ticket offices. (See attached document).

• The report says Network Rail should just a holding company with route level concessions being operated by subsidies or other organizations and there should be early pilots for joint ventures and concessions of rail infrastructure. The report lines up an attack on regional railways by saying they are about six times more expensive to run per mile than long distance and commuter franchises.

• The report has not considered the benefits of re-integrating the railways under public ownership. It has chosen to ignore the fact that billions of pounds is drained from the industry in profits and the evidence that railways in Europe are cheaper for the taxpayer and fare payer because on the whole they are in public ownership and less fragmented. Our research gives a conservative estimate that the cost of privatisation   (high borrowing cost, numerous interfaces and dividend payments) mean privatisation is costing the tax payer a billion a year.

• Instead, while the report rightly identifies fragmentation of the industry as the main cause of high costs, it then inexplicably recommends further fragmentation and privatisation of the railway by arguing for the breakup of Network Rail and the sale or leasing of its assets to the private train operating companies.

• These proposals will increase costs and reduce efficiency leading to poorer services and higher fares. Further fragmentation will also have a significant and adverse impact on the ability of the railways to contribute to strategic objectives such as contributing to economic growth, moving freight to rail and reducing carbon emissions.

• Re-introducing the profit motive coupled with fragmenting signal and track maintenance and signalling operations will create a Railtrack Mark 2 and is inexplicable given the woeful safety record of Railtrack. Following the establishment of Network Rail, maintenance and signalling operations were rightly reintegrated and passed to a not-for-dividend company. McNulty would reverse this.

· As stated previously the report proposes significant cuts in train, ticket office and maintenance workers – a false economy which could result in falling passenger numbers. Research by Passenger Focus and others shows that station and train staff are important to passengers for ticket sales, journey advice and general reassurance.

· The call for an assault on jobs and conditions also ignores the fact that rail workers productivity has increased at a greater rate than labour costs. Unlike the very close correlation between the profits of the privatised railway companies and public subsidy, which the report chooses to ignore, there is no correlation between public subsidy and increasing labour costs. Average earnings in the industry are not in excess of those in the wider economy

• The report proposes greater commercial freedom for the privatised train operating companies, loosening of fare caps and fares tied to market demand. This will see passengers have to pay even higher fares on top of the eye watering increases already announced by the Government. Our research shows that in the last ten years the real cost of motoring has declined by 8%, the cost of flights has declined by 34% but rail fares have increased by 15% in real terms.

I will be providing a more detailed analysis shortly but in the meantime please be assured that the union will be mobilising a major campaign against these proposals.

Yours sincerely,

Bob Crow

General Secretary

Inflation Rates Circular

Circular No. NP/071/11/MC

12^th April 2011

TO: ALL BRANCHES, REGIONAL ORGANISERS, REGIONAL COUNCILS, & EXECUTIVE.

Dear Colleagues,

Inflation Rates Circular

The March rates of RPI and CPI were published by the Office for National Statistics on the 12^th April 2011. The next publication date is the 17^th May 2011.

March 2011 retail prices index rate is 5.3%.This is down from 5.5% in February. The Government’s preferred measure of inflation, CPI, is at 4%, down from 4.4% in February.

By far the largest downward pressure to the change in inflation came from food and non-alcoholic beverages where prices, overall, fell by 1.4 per cent between February and March this year compared with a rise of 0.3 per cent between the same two months a year ago. The 1.4 per cent this year was a record fall for a February to March period. The downward effects were widespread and reflected supermarket led sales this year. The most notable contributions came from fruit where prices fell by 4.7 per cent this year (also a record February to March movement) but rose by 0.7 per cent a year ago, and bread and cereals where prices fell by a record 2.6 per cent this year compared with a fall of 0.2 per cent a year ago.
There were also large downward pressures from:

• recreation and culture, principally from games, toys and hobbies (particularly computer games), recording media and data processing equipment
• air transport, where fares rose by less than a year ago, particularly on European routes

The largest upward pressures to the change in inflation came from:

• housing and household services: prices, overall, rose by 0.4 per cent between February and March this year compared with 0.1 per cent between the same two months a year ago. The main upward effect came from domestic heating costs where average electricity and gas bills rose this year but were unchanged a year ago
• purchase of vehicles, where prices rose this year but fell a year ago, particularly for second-hand cars

In pay submissions the RMT will continue to emphasise that your financial commitments have increased at a much greater rate than inflation and your living standards have suffered as a result.

Yours sincerely,

Bob Crow

General Secretary

7^th April 2011 My ref: EO/33

TO: THE SECRETARY

ALL BRANCHES & REGIONAL COUNCILS

Circular No. NP/067/11

Dear Colleague,

ABOLITION OF THE DEFAULT RETIREMENT AGE

As from 6^th April 2011 the law that allowed employers to retire employees at age 65 (the default retirement age) without having to explain why is being phased out. When discrimination on the grounds of age was made unlawful in certain circumstances in 2006, a provision of the legislation enabled employers to retire employees at age 65 without having to explain why, providing they carried out a certain procedure, which allowed for employees to request to work beyond retirement. In future, employees in theory will be able to choose when they want to retire. If the employer forces someone to retire, they will have to justify the decision at an Employment Tribunal if challenged by the employee.

Transitional arrangements have now been set out after considerable confusion caused by legislative drafting errors by the ConDem Government. If an employer retires someone because they are 65 then both the following must apply:-

1. The notice of retirement must have been given to the employee before 6^th April 2011.

2. The employee must be aged 65 or over (or the employer’s retirement age, if that is higher) by 30^th September 2011.

3. If the member has been given this notice, they still have the right to request to work beyond that retirement date and the employer must consider the request as set out in The Employment Equality (Age) Regulations 2006. (This procedure is readily available from Head Office.)

Any dismissal on the grounds of retirement notified from 6^th April on, if not objectively justified by the employer, will amount to unlawful age discrimination under Section 13 of the Equality Act 2010.

Whilst employees may now have the right to remain in work after age 65, the change in legislation no longer requires employers to make arrangements for or provide access to the provision of insurance or related financial services to those over 65 or state pension age, whichever is the greater.

The abolition of the default retirement age may be welcome by some but we need to ensure that our members can retire with dignity and at a time of their choosing. We do not want a culture where it becomes acceptable to work until you drop.

Yours sincerely,

R. CROW

General Secretary

Direct Line: 020-7529 8821

Direct Fax: 020-7529 8808

E-mail: p.wilkinson@rmt.org.uk