Workplace Report April 2006

Bargaining news

Bus drivers' pay deal arrives 12 months late

Drivers at bus firm First Centrewest are finally to receive a pay rise for 2005-06, following the conclusion of negotiations at the end of last month.

The deal, which is backdated to 30 April 2005, increases basic pay, sick pay and holiday pay by 6%, raising the hourly rate for a driver on the lowest grade to £9.59. And the time taken to progress from this grade to the next level has been reduced from four years to three years and nine months.

Other rates for particular duties have also risen by 6%: operating a rail-replacement service now attracts a premium of £14.37, for example, while the rate for working a night shift on New Year’s Eve has increased to £44.64.

Additionally, the new agreement has altered pension arrangements at the company. Employees’ pensionable pay will be set in line with a particular pay band, and they will then be able to choose whether that pay band should increase by the retail prices index (RPI) or by the RPI + 1% in future years; the latter option will require them to increase their pension contributions by between 1.5% and 2.5%, depending on which of the three company pension schemes they are on.

The deal was approved by members of the T&G general union in a ballot earlier this month.