Five-year deal in power distribution

Staff at the power distribution firm National Grid are set to agree a five-year, part inflation-linked pay deal, running from July 2013 to June 2018.

First off is a 3.3% increase to basic salary backdated to 1 July last year. The inflation-linking kicks in from July 2014 and will be effective for each settlement date between then and 2017. The annual pay increases will flow through to other allowances.

The inflation figure to be used is the annual rise in the All Items Retail Prices Index (RPI) for March to be applied to the July settlement date later in the year.

Although the RPI is no longer recognised as a “National Statistic” by the government number crunchers at the Office for National Statistics, RPI inflation figures are still being produced. The RPI inflation rate is used for petrol and alcohol duties as well as UK government bonds.

However, the National Grid agreement says that if the RPI becomes a de-recognised formula during the period of the agreement, then an alternative mechanism for pay movement will be negotiated.

Subject to the outcome of any future collective agreement regarding defined benefit pensions, no changes are expected to the current definition of pensionable pay, including the elements of pay that are defined as pensionable under the staff handbook.

www.unison.org.uk/news/articles/members-back-national-grid-offer