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THE HEADLINES

Headlines

We have tried to simplify the proposals in terms of the below summary. However, the various elements add a complexity to highlighting what it means. That is why we encourage you to read the grade breakdown details to see in more detail what this overall proposal means for you.

Some of your non-consolidated reward will become consolidated from the 1st July. This has been a Unite ask for a number of years and we are happy that colleagues are going to be able to take advantage of this.

All grades will see their flex cash allowance consolidated into their salary, which means this will count towards your GPS calculation, your pensionable pay (for those on a DC pension scheme) and towards financial products like mortgage applications.

Grades D-G will then also have part of their GPS consolidated into their core salary. This means that effectively you will see most of your GPS that you may have expected in March-June 2024 in monthly instalments between July 2023-June 2024. This guarantees that part of your GPS and leaves less to uncertainty. Grades D and E will fall into the same GPS approach from 2024 that Grades A-C have been on since the introduction of Your Best.

Unite campaigned and demanded the bank do right by colleagues on the back of the unprecedented pay deal that we all secured together and increase the pay range mid-points by the amount of consolidation for each grade. Your mid-point decides where you are within the pay range (market primary/market/market plus/above max) and this can lead to decisions in your annual pay, promotion pay rises and lateral move pay rises. As a result, we have secured movement to all mid-points, and also some extra movement which will lower the amount of colleagues not receiving pay rises. See below for an example pay group and where the ranges may sit .

Range Overview

Pay ranges overview

Pay ranges are how the bank determine that they are paying the right rate for a job. The bank decide a rate that is reasonable and this is then the mid-point for the role. This is classed as the '100%' part of the range. Between 95% and 105% of the mid-point is the 'market' range for Grades A to E, and each range will have a minimum (spanning from 80% to 90% of the mid-point currently, depending on your Grade) and a maximum (spanning from 130% to 150% of the mid-point currently, depending on your Grade).

The mid-point movements are subject to annual acceptance by union members and traditionally move at a pace similar to the annual pay rise. This ensures that colleagues don't move 'too quickly' through the pay zones and are able to receive a decent pay rise each year. In previous years, your pay rise has been based on your position in the market range. This means that the lower in the range you are, the more you got in terms of a pay rise. Unite have always opposed this way of awarding pay rises as it pits workers against each other.

What we call 'Market Movement' is just the term for what is added to the mid-point, causing a domino effect and increasng the other parts of the range. For example, a zone at Grade A-C with a mid-point of £27,000 will have a Market Primary range of £24,300-£25,649, a Market range of £25,650-£28,349, a Market Plus range of £28,350-£32,349, and anything from £32,350 and over is classed as Above the Maximum.

£27,000

£25,650

£24,300

£28,350

£32,349

Grade Breakdown

Consolidation

Market Range

Market Zone

Overnight salary increase of 4% (calculated at 30 June) - this will be higher than your current flex allowance but colleagues have told us that most of this will not be 'new money'

GPS amount is based on salary so in essence if you were awarded the same percentage GPS next year as you were this year, your award would be even bigger (assuming GPS set at 5%)

Pension contributions are based on salary so both yours and the bank's pension contributions will increase if on the Your Tomorrow scheme

Ability to take higher salary into consideration for things like mortgages

Previously you had to be competent at your role and be in role for 6 months to reach 95% of the range. Now you will start there overnight

Potential real pay rise of £4,000 overnight for colleagues in this position

Removal of the "bring to market" qualifier which used to hang over colleagues' heads when they started a new role

Previously the 'Market Zone' part of the pay range ran from 95% of the mid-point to 105%

This will now run from 95% to 110% meaning that some people will drop down from 'Market Plus' into 'Market', increasing their chances of a higher pay rise if the bank use your position in the range as a qualifier for your pay rise (typically, the lower you are in the pay ranges, the higher the percentage pay rise you would receive).

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If you have any queries, are struggling to understand the changes or want to provide further feedback please complete our contact form or email LBG.Support@unitetheunion.org

SURVEY

FAQs

Why has Unite remained neutral on the pay award / not recommend reject?

Although the bank has not met our demands of a pay offer that is two percent above inflation based on the RPI we recognized they have moved quite considerably from their initial offer due to union pressure in the give and take process of negotiations. As there are both positives and negatives to the final offer Unite feels it is unable to recommend a position and as part of the democratic process believes rightly the final decision should be left up to the membership to vote as they see fit.
Why is Unite waiting until February to ballot members?

When Lloyds announced there would be no bonus, and upon seeing all other UK banks deciding to pay one, we received a lot of feedback to say that people would have voted differently on that year's pay ballot because of it. This year we felt members would appreciate the complete picture on what their reward package for the year will look like before using their vote.
If I vote No, does that mean I won’t get a pay rise?"

If the result of the whole ballot is to reject, then the pay rise will be put on hold. Unite will tell the bank the members reject the offer, and we will look to see what further negotiations can achieve. Any further discussions would be on the basis that whatever the outcome is, any pay rise would be backdated.
What does the market movement mean?

It means the pay range will be increased by the relevant percentage before the pay rise is applied. Some people will move to a lower pay range because of it and get a higher pay rise as a result.
What was the bank’s original offer?

The bank has subjected both unions to an embargo preventing disclosure of any of the specifics as to how negotiations have progressed. All we can say is that the first offer was a LOT lower than what we ended up with but that shouldn’t matter. What matters is whether you think the current offer is good enough.
Will a reject outcome really make a difference?

It will show the bank a real signal that their workers aren’t as happy as they would maybe think and would be encouragement for them to negotiate further with the unions.
What if the bank doesn’t want to negotiate further?

Unite will look to see what action members would be willing to take
What would further action look like?

It could be a range of things. Negative publicity, demonstrations and even strike action. That said I think all parties would rather a mutual and respectful agreement to be struck.
What is the difference between CPI and RPI?

They are just different ways of measuring inflation. The major difference is RPI includes housing costs such as council tax and mortgage interest payments etc. However, CPI does not include such housing costs. Unite base their pay claim on RPI because it believes when looking at the rise in the cost-of-living housing costs are an important factor to consider in living standards.
What is inflation?

Inflation is the rate at which prices are rising - if the cost of a £1 jar of jam rises by 5p, then jam inflation is 5%. Hundreds of goods and services (known as a basket of goods) are compared each month. Some goods and services may go up in price while others go down and this is averaged out to give the inflation figure for a particular month. So for example the current inflation figure of 5.1% for December 2021 means that overall prices have risen by 5.1% compared to December 2020.
How does inflation affect me?

If your pay is rising by less than inflation, you will see a fall in the "real" value of your wages, because what you're earning will buy less. We're all affected by rising prices, but if you're on a low income or don't have savings to fall back on, you're likely to feel the impact more keenly.