Drugs firm AAH simplifies its pay structure

Pharmaceuticals wholesaler AAH has simplified its pay structure, abolishing the junior rate and replacing a number of grades with a single warehouse rate. There will be two years' pay protection and "red-circling" for those who lose out as a result of the changes.

Overtime and night premia have been reduced to 1.25, but basic rates and allowances rose by 3.75% with effect from 1 April 2004. The settlement is for two years with a rise equal to inflation (RPI) plus 0.5% in 2005, subject to a minimum of 3% and a maximum of 3.75%. The second-year rise will be "revisited" if inflation is over 3.25% in January.

The settlement means new weekly rates of £214.96 for a warehouse operative and £232.18 for a driver, with heavy goods allowances of £62.08 (HGV1) or £45.15 (HGV2) and an overnight allowance of £37.84. There are fork lift and team leader supplements of £10 per week.

Other allowances continue to form part of the pay structure, including a London allowance of £2,423pa, annual long-service awards ranging from £109 to £778 for between five and 45 years' service, an annual first aid payment of £203.66 and call-out payments of £3.39 per occasion.