SANTANDER PAY DEAL RECOMMENDED
EMBARGOED UNTIL 09:00 AM ON TUESDAY 14 JANUARY 2020
TO ALL BRANCHES WITH SANTANDER MEMBERS
Dear Colleague
Santander Pay Review 2020
SANTANDER PAY DEAL RECOMMENDED
Following intensive negotiations with Santander UK the CWU has secured a pay offer for a two-year deal for 2020 and 2021.
Main elements of the recommended deal are as follows:
- A 2-year deal for 2020/2021 that provides certainty on pay during times of uncertainty.
- It maintains the unique Pay Progression scheme in the sector.
- It provides a simplified 2 box matrix for S1/G1 and S2/G2 and equivalent grades and an underpin of £450 (pro-rated) with an ability for IP improvers to benefit.
- It provides an award of 3% (80%-89.99% of range) and 2% for S1/G1 and S2/G2 above 90% to maximum.
- Non-consolidated awards of 2.2% for those above the maximum of the pay range, excluding protected grades who will receive consolidated awards.
- A fixed award of £825 for S3/G3, which is non-consolidated for those above the maximum of the pay range
- A small discretionary budget for S4/G4 and S5/G5 whose salary is within the pay range.
- Increases to the Inner and Outer London pay ranges reflecting the London Premium.
- For colleagues in Santander Technology equivalent to S1 and S2 consolidated awards of 2.2%, a fixed award of £825 for S3 equivalents and a small discretionary budget for S4 and S5 equivalent.
- The effective date for the pay increase if accepted via the CWU consultation process will be 01 March 2020 and 01 March 2021.
The offer is recommended by the Union’s National Team which includes local and national representatives from all CWU Branches in Santander around the UK.
THE OFFER IN MORE DETAIL
S1/G1 & S2/G2 Pay Matrix
- Santander has listened to the CWU National Team and is proposing a much more simplified 2 box pay matrix for S1/G1 and S2/G2 grades.
- Base pay will increase through pay progression (if eligible) and through the pay matrix relating to position in range.
- The matrix will apply for 2 years irrespective of performance rating with the exception of IP rated members.
- A mechanism for IP improvers will be introduced which will enable them to receive the pay increase award in September 2020 or 2021 if their performance improves to CP in that year.
- The process will be agreed with the CWU.
- An underpin of £450 in both years of the deal (pro-rated for part timers).
- The underpin is worth an average increase of 15% in the first year and 6,900 colleagues will benefit.
Pay Ranges
- An Increase to S1/G1 and S2/G2 salary ranges and midpoints of 1% with a further 1% applied in March 2021.
- An increase to the S1 P1 salary ranges and midpoints and maximum by 2% in both years.
- A commitment secured by the CWU that due to the complexity of the pay ranges they will review these with the CWU by the end of Q4 2020.
Increase to London Premium
- Inner London Pay area – premium increase in midpoint from £3,500 – £4,000
- Outer London area – premium increase in midpoint from £2,000 – £2,250
Pay Range Alignment
- To apply the current pay range design of 80%-120% to those S1/G1 & S2/G2 members who currently have a 70%-130% range from March 2020.
- Those currently below the new minimum of 80% will receive an average increase of 9.35% in March 2020.
- Those currently with a salary above the new maximum of 120% will receive a consolidated increase for the next 2 years. Any increase above the 120% range from 2022 will be non-consolidated.
Increases to the Minimum Salary
- The minimum entry salary for S1:P1 will be increased by 2%.
- In March 2021, the minimum full-time entry salaries for S1 P1 will increase by a further 2% or match the new rates to be published in November 2020 by the Living Wage Foundation.
Those over the Scale Range Maximum
- All members that are above the pay range maximum will receive a non-consolidated payment. S1/G1 & S2/G2 members whose salary is above the pay range maximum will receive a non-consolidated payment of 2.2% for 2020.
- If still above the range in 2021 a further non-consolidated payment of 2.2% for 2021.
- Exceptions to this are those in Santander Operations with personal pay protections and former clerical grades, who will receive a consolidated 2.2% for both years.
S3/G3 Increase
The CWU argued hard for a real increase in pay for the S3/G3 grades and although the final offer is not as much as we would have liked. This is is a fully consolidated pay offer for those in range.
- For S3/G3 grades whose salary is within the pay range a fixed consolidated award £825 in both 2020 and 2021.
- This is worth up to 85%.
- a non-consolidated award will apply for those above max.
- IP improvers to benefit from increase in September of 2020/2021 if their performance improves to CP. Process to be agreed with the CWU..
S4/G4 & S5/G5
The CWU National Team also argued that the S4/G4 & S5/G5 grades should not be excluded but were unable to persuade the Bank to provide anything other than a small discretionary budget for S4/G4 grades
- Guidance on how these awards will be determined will be agreed with the CWU.
- The 2020 and 2021 Pay reviews will exclude those with IP rating.
SANTANDER TECHNOLOGY
The approach used in the 2019 pay award will be used to form the basis of the 2020 and 2021 pay awards for members working in Santander Technology and UK contracted Santander Global Technology.
The read across for 2020 and 2021 is therefore as follows:
- Those S1 and S2 equivalent grades will therefore receive a consolidated award of 2% in both years.
- S3 equivalent grades will receive a consolidated award of £825 in 2020 & 2021 and a small discretionary budget will be available for equivalent grades S4 & S5 in both years.
- IP improvers to benefit from increase in September of 2020/2021 if their performance improves to CP. Process to be agreed with the CWU.
In addition the CWU has also secured a commitment from the Bank for a review of the San Tech reward which will be concluded by the end of Q4 2020. However, base pay awards for 2021 and the read across to be used as set out above will be out of scope of this review.
Next Pay Review date
- The next pay review date will be 01 March 2022.
Ballot Arrangements
You will shortly be given an opportunity to vote on the proposed agreement via an electronic ballot.
The electronic ballot opens on the 14 January 2020 and closes on the 31 January 2020.
UNION RECOMMENDATION
It has been the aim of the CWU National Team to simplify the pay deal along with securing a decent increase in our members pay.
The two year deal is to ensure that there is certainty for our members at a time when there is uncertainty and where we know that the bank has a number of challenges including intense competition, declining profits, and a focus on cost control.
We have now exhausted the negotiating process and believe that this is the best offer that can be achieved.
The CWU National Team are recommending that you vote YES to accept the offer in the consultative ballot.
Yours sincerely
Sally Bridge
National Officer
| Algus National Branch | 0116 200 3620 | info@cwualgus.org.uk |
| Bootle Financial Services | 0151 966 2420 | 4north@cwubootlefs.com |
| Northern & National Financial Services | 0151 966 2221 | john.nicholas@santander.co.uk
cwu.nnfsb@santander.co.uk |