Carillion pay freeze

15 July 2010

You may be aware of recent developments relating to Carillion’s position on pay and how PCS bargain on behalf of members within Carillion.
 
On May 20th PCS representatives from the three sites had an initial teleconference with Carillion to discuss pay. Regrettably Carillion have taken the decision to resist our members’ claim that, under TUPE, there was an agreement that members would receive pay awards in line with the Siemens pay agreements going forward.
 
The Company dispute that our members should benefit from the terms of the collective agreement, which PCS maintain was agreed as part of the TUPE consultation.
 
PCS asked Carillion to outline what they would offer in terms of pay for 2010. Carillion stated that there is currently a company wide pay freeze therefore the review would deliver 0%. Clearly this represents a pay cut in real terms taking into account an RPI figure of 5.1%. Your representatives reminded the company that you have all taken on an increased workload and now perform a number of additional tasks. Furthermore, PCS members do not enjoy the on-call payments which apply to the wider Carillion workforce.
 
It was agreed that the matter would be reviewed. Subsequently PCS had a further teleconference with the employer on 28th June, during which lengthy discussion took place. However, Carillion’s position remains unchanged and they confirmed the pay freeze will still apply to our Members. They have, however, asked PCS to supply copies of the agreement and all relevant TUPE documentation. PCS has also asked for an update on the on-call allowances Keith Mitchinson is currently reviewing the matter and has agreed to discuss the findings with your Union in due course.
 
PCS has also written to our Parliamentary Group asking them to raise the matter with MP’s. We have asked them to write to John McDonough in condemnation of Carillion’s shoddy approach to industrial relations and their imposed pay freeze.
 
It is ironic that our Members are being subjected to an imposed pay freeze whilst John McDonough features prominently on the list of top paid executives within the UK. Although he has agreed to take an 18% pay cut, this is small beer to staff, none of whom share the same luxury of an annual salary in excess of £1 million per year.
 
PCS will update you further once we receive a response from Carillion.
 
Caroline Turner
Industrial Officer