To put TSB’s 2020 pay proposals into perspective, members should read the next sentence carefully. Compensation for key management personnel in TSB, which is the Board and Executive Committee, increased by 3,149.2% between 2018 and 2019. No, we haven’t got that figure wrong. The main reason for the difference is because of the lack of variable reward costs in 2018. So, despite creating the biggest IT disaster in history, the Board and Executive Committee got their big share options back in 2019. Lucky for them.
Once again, TSB staff are getting the worst pay deal in the finance sector. TSB staff have had average salary increases of 2% since 2017. Over the same period, the cost of living, measured by the retail price index (RPI), has increased by 9.9%. So that means, TSB staff are on average 3.9% worse off (inflation since 2017 = 9.9% – average TSB pay of 6%) This year staff are getting average pay increases of just 2% again. It seems that pay stagnation is built into TSB’s reward system and that’s set to continue for another 12 months as a result of the HR approved unions not being prepared to say enough is enough, and stand up for the interests of their members.
One of the TSB approved staff unions – Accord – says: “we’re a union that asks members what they think, not one that tells them what to think.” That’s a cop out. Given that members fund the union they are entitled to know what their union thinks of TSB’s pay offer. If a union is not prepared to say what it thinks, then that’s because either it secretly agrees with the pay offer or it’s so financially dependent on the support it gets from TSB that it’s scared of upsetting its financial master.
Worst Pay Deal In The Finance Sector?
Santander, which is the closest bank in size to TSB, had another relatively bad year but their staff are getting a significantly bigger pay pot.
As we reported recently, Santander has announced a two-year pay deal with staff getting increases of up to 3% for 2020 and 2021, depending on position in salary range. But that only tells half the story. Santander have put in place a unique pay progression mechanism which means that lower graded staff are moved quickly to 100% of their pay range. In some customer facing roles, 100% of the pay range, or rate for the job, can be achieved in 12 months. Staff eligible for pay progression, get annual pay increases and progression increases to make sure they are in the right position.
Why can’t TSB put in place something like that, especially for staff in its lowest bands? Those staff have seen their pay stagnate over the last few years. We hear stories of members having to take second jobs or rely on tax credits to make ends meet. For staff working in a bank, that’s unacceptable. And now, because of changes to overdrafts, in April many of those same staff are going to see their bank charges increase significantly. TSB is doing nothing to help those staff.
What, No Negotiation?
Accord and Unite try to give the impression that they have had detailed discussions about TSB pay and bonus awards. They haven’t. According to the latest Report and Accounts: “The Remuneration Committee has determined that the simplest and fairest approach to the annual pay review based on the 2019 performance year is to set a salary increase of 2%”. That’s it, no discussions or debate. Either take it or leave it. Unfortunately for staff, TSB know that the two HR approved unions will do nothing to oppose it. One of them doesn’t even ballot its members anymore because it’s afraid they will reject TSB proposals and it will have to do something about it; which it doesn’t want to do. Salary progression in TSB will be discussed in more detail in a forthcoming Newsletter.
Members with any questions on this should contact the Union’s Advice Team on 01234 716029 (choose Option 1).