Overtime to be replaced by "hours banking" at Voith

A system of "hours banking" is expected to improve flexibility and job security next year at paper-finishing machinery manufacturer Voith Paper in Manchester.

The scheme, to be introduced in January under the terms of this year's pay agreement, will replace part of paid overtime. Employees working overtime in periods of high activity will "bank" a portion of their overtime hours rather than being paid for them. In subsequent periods of low activity, they will not be required to attend work but will be paid. If workers accumulate unused banked hours, they will eventually be paid for them at the prevailing pay rate.

A maximum of four banked hours can be built up in one week, balanced by a similar number of paid overtime hours. Overtime worked on Sundays and bank holidays is not included in the scheme.

Hours will be banked at the rate of time-and-a-half, so four hours of overtime would count as six hours banked. The company will decide when to operate the scheme, in conjunction with the recognised unions, and will give a minimum of 30 days' notice.

During periods of operation, the overtime rate will include a 7.5% enhancement. Workers will be able to accrue hours up to a maximum of 130, plus 20 more on slightly different terms.