2009 Pay Review- SWT

SOUTH WEST TRAINS - GENERAL PAY REVIEW OCTOBER 2OO9 I refer to discussions ot the lost pay meeting held on 20th October when I undertook to respond to the further improvements requested by the trode unions present in relotion to the proposed two year pay agreement. Having considered the offer, I confirm that SWT is prepared to offer on improved two-year pay agreement, as follows: 1. Rates of Pay To increase rates of pay and salories for all grade groups covered by SWT Procedure Agreement '1, as follows: Year I (5th October 2009) Year 2 (4th October 2010) Next pay review October 2o11 . The current rates of London & South East (and associated Regional) Allowances to remain unchanged without increase. -2-

2. Reduction in the Working Week - Guard Grades

For the guard grades, there is on option to consider taking a lower pay increase in Year 2 of the agreement and a one hour reduction in the basic working week.

Should this option be exercised, the percentage pay increase in Year 2 (October 2010), os set out in clause I , will be reduced by an omount that is sufficient to fully fund the extra cost to the business of the one hour working week reduction. The earliest that the one hour reduction could take effect is the 2011 December timetable change.

The RMT will put this option to its.members in the guard grades in a referendum and the union must notify SWT by 17th September 2010 at the latest, if this option is to be exercised. The offer of this option is conditional upon there being a default position, which is that if, for whatever reason, the option is not exercised, the Year 2 increase set out in clause 1 will apply with no reduction in the working week.

3. Payment Arrangements

Employees in grades that continue to receive weekly payslips and payment by weekly bank-credit transfer will transfer to four-weekly payslips and payment by four-weekly credit transfer. lmplementation date and arrangements to be discussed and agreed.

4. SWT Travel Pass for Retired Staff

SWT is prepared to meet with the trade union,/company council representatives during June 2010 (or as otherwise agreed) to discuss with the trade union aspirations in relation to the SWT Travel Pass granted to retired staff.

Having met the further improvements sought by the trade unions present at the lost meeting, this offer must be regarded as SWT's final position. For the driving grades, ASLEF's aspirations for the pay review involve changes to Drivers terms and conditions linked to productivity improvements and discussion with ASLEF representatives on this aspect is ongoing.

SWT's aim for this year's pay review is to reach an early agreement and I would emphasise that the offer is made on the basis that there is early acceptance from the trade union parties. As previously discussed, SWT will have to review the position in the event that the trade unions recognised for the various grade groups are not in all agreement with the final offer.

I look forward to your early response.

Yours sincerely,

Andrew Welsby Human Resources Director