Further to previous correspondence, Network Rail has written to confirm that the proposals in relation to Family Friendly Policies have been withdrawn from the 2007 Pay offer and these aspects will now be dealt with by the Joint Working Party.

Increase in basic rates of pay:

In a 21 month deal, rates of pay will be increased from 1st April 2007 by the February 2007 RPI (4.6%) + 0.75%, ie 5.35%.

From 1st January 2008 basic rates of pay will be increased by the greater of the November 2007 RPI (published December) + 0.5%, or a minimum of £700, a minimum increase of not less than 3.2% increase will apply.

For those employees covered by Role Clarity or personal contracts, the respective pay awards of RPI + 0.75 for 2007 and RPI + 0.5% (minimum 3.2%) for 2008 will be the 'Met All' benchmark awards, consistent with other employees in Network Rail.

Increase in London Allowances:

For those on Role Clarity contracts within Maintenance, they will receive an uplift in London Allowances with effect from 1st April 2007 in line with employees on Role Clarity contracts in other functions. The Network Rail Allowances will, therefore, increase as follows:

* Inner London Allowance from £2,200 to £2,250
* Outer London Allowance from £1,210 to £1,240
* South East Allowance from £787 to £805

For those employees in the Maintenance Function on former IMC Terms and Conditions the allowances will increase by the same cash amount as the uplift to the Network Rail Allowance ie Inner London will increase by £50, Outer London will increase by £30 and South East Allowance will increase by £18. A cap of the actual Network Rail Allowances of £2,250, £1,240 and £805 respectively will, however, apply.

35 Hour Week:

For Maintenance employees on Role Clarity contracts, their weekly hours should be reduced from 36 currently, to 35 with effect from 1st April 2007. This will bring these employees into line with others on Role Clarity contracts.

A reduction of 1 hour per week will also be effective to those employees whose current weekly hours equate to 36, or greater.

Purchase of Annual Leave (Role Clarity Contracts only):

The amount of leave to be taken by an individual in any year will be capped at 30 days in total; ie individuals with 28 days entitlement can purchase a maximum of 2 days annual leave. Individuals with an entitlement of 30 days will not be able to purchase additional days. Implementation will be based on the annual leave buy/sell option for 2008. This change is consistent with other employees in Network Rail on Role Clarity Contracts.

Travel Subsidy:

As part of the 2006 pay talks it was previously agreed that the travel subsidy would increase to 45% with effect from April 2007 (with a corresponding increase in the maximum travel subsidy loan to £2,700) and in April 2008 to 50% (with an corresponding increase in the maximum travel subsidy loan to £2,740)

Family Friendly Policies:

Proposals in relation to Family Friendly Policies have been withdrawn from the 2007 pay offer and, unless these have been superceded by legislation, the former IMC Policies will continue to apply until these aspects are dealt with by Joint Working Party.

This pay award will only apply to those employees within the Maintenance Function of Network Rail who are covered by the General Collective Bargaining Agreement and includes S&T, Permanent Way, Overhead Line, Plant & Distribution as well as some Supervisory, Clerical and Technical Support employees (ie those with a review date of 1st April 2007).

However, there have been a number of other TUPE transfers into the business since the General Collective Bargaining Agreement was agreed, some of whom are covered by a separate Collective Bargaining Agreement and, by definition, these groups are not included in this pay award.

In particular, the company is referring to those individuals who have transferred from the following companies into Network Rail in the past 2 years:

Former Company Date of Transfer

Raynesway 31st March 2005
GTRM/Balfour Beatty JV 1st April 2006
Serco (litter picking) 1st June 2006
Serco (property Maintenance) 25th June 2006
First Engineering (prop Main) 25th June 2006
AMEC (Telecoms) 14th August 2006
AMEC (HV Cables) 11th September 2006
C Spencers 17th September 2006
IMS 4th March 2007
First Engineering (Prop Main) 1st April 2007

Network Rail has said that they will write to me separately regarding proposals in respect of these individuals.

The company has also suggested that there is an urgent need to consider how all of these discreet groups of people should, in the future, be dealt with and represented, particularly bearing in mind the work currently being undertaken by the Joint Working Party to 'standardise' Terms and Conditions of employment. It is proposed that this aspect should form part of the wider review of the bargaining arrangements, a meeting which is in the process of being arranged.

I shall keep you advised of further developments.

Yours sincerely,

Bob Crow
General Secretary