Rise secured after challenging negotiations at Royal Bank of Scotland

Most Royal Bank of Scotland (RBS) staff in clerical, appointed and management grades were due to receive a pay rise this year following “incredibly challenging” negotiations in December and January. Unite secured an increase to the bank’s annual base salary bill providing rises of 1% or more for 68% of staff, 2% or more for 39%, 3% or more for 24% and 4% or more for 12%.

Difficult conditions at the government-owned bank have seen the announcement of 21,500 job losses, and operating profits of £1.9 billion in 2010 offset by an overall loss of £1.1 billion. And while the union favours pay awards in line with the true cost of living (with performance rewarded through additional increases to base pay) it was once again up against the bank’s long-standing performance and market-driven pay philosophy.

Efforts to cut the number of “zero” pay awards resulted in an improved offer for more than 14,000 staff, but the “real turning point” was the achievement of a monetary underpin (0.25% or £100, whichever is the greater) for all those performing at a certain level . Negotiators believe that “for the first time in years” the bank has recognised the real cost of living and perhaps “at least reflected” on its current pay methodology.