Pay 2018: Removal of bonus for appointed staff

Pay 2018 Campaign Archive

Following the 2008 financial crash, NatWest Group (then known as RBS Group) pursued a programme of savage cuts and cost-saving exercises. Many long-standing terms and conditions were removed. By 2017, Clerical staff (now known as A grade) had had their variable pay (usually known as bonus to workers) removed and incorporated into fixed pay. Immediately prior to 2018 pay negotiations, the bank announced the removal of variable pay from appointed staff (now known as B Grade).

While some workers received an increase to their fixed pay to ‘buy out’ their bonus, this was quickly eroded over time as the bank continued to offer below-inflation pay rises under the justification of the company’s financial position and the fact that the tax payer held a majority ownership stake in the bank following a government bailout in 2008.

This Unite newsletter was originally published in November 2017.

Appointed Staff Pay Simplification

In advance of the negotiations over the 2018 pay settlement, RBS have confirmed to Unite negotiators that they will be making changes to variable pay for appointed staff.

From 1st January 2018, the bank will move all appointed employees (including, Gibraltar, Jersey, Guernsey and the Isle of Man), who are currently eligible for discretionary bonuses on to a ‘fixed pay only’ system. This means that for performance year 2018 onwards, the bank will no longer award bonuses, instead the majority of employees will get an increase in their pay on 1st January 2018.

The changes

The changes broadly reflect those that were introduced in previous years for the clerical populations across RBS. Fixed pay increases will take effect from 1st January; however employees will still be eligible to be considered for a bonus for this current performance year (i.e. 2017). In addition impacted colleagues will also be eligible for the April 2018 annual pay review. The bank will review salary ranges to reflect the new pay system.

W&G

The bank has confirmed that W&G are also planning to move all clerical and appointed employees who are currently eligible for a discretionary bonus onto a similar ‘fixed pay only’ proposition.

What’s it worth?

he bank worked out fixed pay increases for performing employees by taking the higher of an employee’s average variable pay for performance years 2015 and 2016 and 4% of salary (the average bonus for appointed employees).

The bank will convert the higher of these numbers into fixed pay at a rate of 95p into fixed pay for each £1 in variable pay; (this is the same formula used for clerical employees in previous exercises). The fixed pay increase will be spread across salary, pension and benefit funding. This means that for performing employees the average consolidated payment will be based on at least 4% of salary (the underpin). However, colleagues may receive a higher payment if their average discretionary bonus awards for the past two years were in excess of this amount. Full details of how the payments will impact employees are being provided by RBS directly to staff.

Unite comment

As a result of the guaranteed underpin, a majority of employees will receive a consolidated payment on their salaries that is higher than their bonus payments over the past two years.

However Unite still has concerns about those members whose performance may have dipped in 2015 and 2016 and may miss out on these consolidated payments. Where members feel unfairly impacted, they should contact their local Unite representative for guidance and support.

What are your views on the proposed changes to Variable pay for appointed employees?

If Unite members have any immediate comments, they should contact their local union representative in the first instance. Members can also contact the Unite RBS information point at rbsinfo@unitetheunion.org.

Unite representatives

The union is always seeking members to take on one of the four Unite Representative Roles i.e. Workplace, Union Learning, Safety and Equality. If Unite members are interested in finding out more about becoming a Unite Representative please contact the Unite RBS Helpline or e-mail rbsinfo@unitetheunion.org.

Unite RBS updates & update your details

If you would like to receive regular updates electronically from the union and have not already advised us, please email from your preferred email address to rbsinfo@unitetheunion.org.

It is also important that members ensure that their membership details are up to date and accurate (e.g. home address, work address, whether you are full time or part time etc.) If you believe that your membership details are out of date, please also e-mail the above address or alternatively you can contact your local union office or log onto ‘Member Login’ at the website www.unitetheunion.org where you can update your own details.

Not a Member?

RBS employees who are not already members of Unite are urged to join the trade union now. Join Unite’s 1.4 million members and have a voice on this and other issues, as well as receiving support, advice and representation. Membership forms can be obtained by emailing rbsinfo@unitetheunion.org plus you can join online at www.unitetheunion.org.