Pay is not settled yet regardless of what TSB and Accord might think. And nor are bonuses for that matter.
According to the latest report and accounts, TSB was able to recover post-migration charges from Sabis, strategic IT partner of the Sabadell Group, for its part in the IT meltdown. The extent to which Sabis was responsible for the meltdown will become clearer once the results of the investigation undertaken by Slaughter and May are published. That report is already 3 months overdue. One can only assume that the delay is as a result of some of the key stakeholders involved in the IT meltdown not being happy with Slaughter and May’s conclusions. The Union will be writing to Mrs. Nicky Morgan, Chair of the Treasury Select Committee, to register our concerns at the length of time TSB is taking to produce this report. A few weeks delay is acceptable, almost 3 months delay is completely unacceptable.
That post-migration payment by Sabis was worth £153 million. TSB said:
“The MSA and OSA contracts provide TSB with the right to seek recovery of losses from Sabis, the Sabadell Group IT provider, for breach of contract up to the level of liability caps in each agreement. TSB and Sabis have reached provisional agreement, subject to mutual reservations of rights while negotiations are concluded, to recognise an aggregate estimated recovery under the agreements of £153.0 million. Claims under certain insurance policies are ongoing and are not yet sufficiently advanced for any amounts to be recognised in the financial statements.”.
What that means is that potentially TSB could recover most of the costs of the IT meltdown including regulatory payments from Sabis and its insurance policies. Staff were denied their full TSB Award because of the IT meltdown and were instead fobbed off with a one-off integration award worth 7% of salary compared to the TSB Award which was worth 12%. The table below shows what staff have lost because of the decision to withdraw the TSB Award. That decision was agreed by Accord.
If TSB can claim most of those losses back, even if that won’t happen immediately, TSB should commit to make good the difference between the integration award and the TSB Award when they get the money from Sabis. Sabis should be told to fund the full pay pot this year. Why should TSB staff be worse off as a result of decisions made outside their control? Equally, why should TSB staff receive pay rises less than those which apply to Sabis staff?
Put another way, why should TSB make money out of the shambles it created whilst staff pay the cost?