LTB 464/20 – Capita TVL: Formal Pay Offer Rejected

No. 464/2020

23rd September 2020

Dear Colleagues

CAPITA TVL: FORMAL PAY OFFER REJECTED

Further to LTBs 016/20 and 220/20 dated 10th January and 23rd April respectively.

Branches are advised that despite the obvious practical constraints due to Covid-19, we have continued our pay negotiations with Capita TVL management throughout the summer period.

The following Joint Statement has been agreed and published in respect of our ongoing pay negotiations and is designed to update members on the current situation. In this regard, there is a 2% offer on the table; however this has been rejected and further details are provided below.

Capita and CWU Pay Negotiations

We are mindful that an update on our pay negotiations is needed. Clearly, we are in the most abnormal year any of us have ever experienced and this has impacted on the traditional way we conduct negotiations. We do though have a good and constructive working relationship which has helped us considerably during our various discussions over the course of the pandemic.

Capita has made a formal 2% pay offer from 1 January 2020 for 12 months, which it believes to be fair in the circumstances. Capita has also introduced the Real Living Wage for the lowest paid staff from 1 April this year, although the policy means there is no pay award for those earning in excess of £28,000 p.a. The CWU, on behalf of its members, has however rejected this offer as it falls short on a number of levels. Despite both parties being keen to find a mutually agreeable way forward, unfortunately we are at an impasse.

Whilst some progress has been made, we are sorry we are unable to be more positive at this stage. We are considering next steps including raising this matter through the agreed Disputes Procedure.

However, at this stage the TVL team are not confident of any further offer being made. We know you will be disappointed by this news; however, both parties are doing what they feel is right in the prevailing situation. We are though committed to reaching an agreement. To this end, further discussions will be held to see if this is possible and of course your pay rise would be backdated to 1 January 2020.

Both parties would like to thank you for your patience in this matter and reassure you that we wish to establish an agreement that you would support as soon as possible.

Yours sincerely

Paul Johnston                                                         Andy Furey
Partnership Director                                             Assistant Secretary
Capita TVL                                                              CWU

As referenced in the Joint Statement, the current offer still falls short of our aspirations as it fails to address a number of the key components of our pay claim which are as follows:

• Improvements to the employers’ pension contribution rates

• A one hour reduction in the 37.5 hour net working week

• 3% minimum pay increase for those members who, on moving up to the Real Living Wage, would receive a pay rise of less than 3%

• 3% minimum pay increase for all members whose basic hourly pay rate is greater than the Real Living Wage

• The introduction of the Real Living Wage hourly pay rate of £9.30 from 1st January 2020 rather than 1st April 2020

• Capita TVL commits to automatically introducing further increases in the Real Living Wage each year to take account of the Living Wage Foundation’s recommendation.

For ease of reference LTB 016/20 which expands upon the above key components is attached.

Further developments will be reported following our additional discussions with management which are in the process of being scheduled. We are also in the process of arranging a meeting with our Capita Reps on the TVL contract as membership engagement going forward is critical.

Yours sincerely,

Andy Furey
Assistant Secretary

Attachment 1: LTB 464/20 – Capita TVL – Formal Pay Offer Rejected

Attachment 2: LTB 016/20 Capita TVL – Formal Pay Claim 1st January 2020