Pay 2009 – Questions and Answers

As the ballot approaches on the recently announced pay offer from NATS the BEC has begun to compile some questions that we have been asked by members or reps. Below are a selection of the most common points being raised so far. If you would like the BEC to answer a specific point or clarify any part of the deal please e-mail salaryandstructure@atcos.co.uk and we’ll put any appropriate responses up on this page of ATCOS.co.uk.

Does the ballot require all parts of the NTUS to vote ‘Yes’ in order for the deal to be accepted?
Yes. The ballot process is similar to that of the recent pension vote. In order for the deal to be accepted it requires all of the 3 trade groups within NATS (Prospect ATCO, Prospect ATSS and PCS) to vote in favour. As before there will be individual ballot papers for each branch sent out to members.

Why are the union recommending a 2 year deal?
Firstly, NATS made it quite clear that if we wished to receive any form of pay offer from the organisation then the unions would have to accept a deal that covered at least a 24 month period as this gave the company some certainty of costs in the current economic climate. This of course is not necessarily a reason for the unions to accept a 2 year deal, however, against a backdrop of RPI forecast to be circa -3.5% in August 09, the executive felt that on this occasion this was an acceptable position.

It’s important to note that whilst a positive RPI figure means that the NATS enroute charging mechanism allows for a possible increase in charges to the airlines, a negative figure means that the company would have to reduce its prices. The long term union policy on basing pay claims on RPI is a sound one however it would be untenable to change this simply because certain economic  circumstances weren’t in our favour at the time of a pay negotiation. Therefore the possibility of achieving any form of pay rise in August 09 if RPI was negative would be extremely challenging and NATS could well base a valid argument around the necessity for a pay cut if cost could not be removed from the business in other ways. The BEC believe that the current offer gives us the best opportunity of avoiding such a situation and indeed if RPI appears to be worse than forecast could result in a better than RPI pay award over a 24 month period.

Another point we considered was that if we did a 2 year deal and the total reward was backdated to January the 1st 2009,  this allows for the entire package to offer an uplift in pensionable pay. The cap detailed in the Memorandum of understanding, in terms of CAAPS ,would not come into effect (the cap for pensionable pay 2009 is currently set at 5.3%). If a pay award was given in January 2010 and the previous August RPI was anything less than – 0.4% then this would mean that any uplift would be non-pensionable.

What do I do if I don’t receive a ballot paper?
All members should receive a ballot paper in time for voting well before the close of the ballot. All ballot papers are sent out together so if your colleagues have received one and you haven’t then please contact the Prospect office in Chertsey on 01932 577011 and they will be happy to send a replacement. Your ballot form will be sent to your home address that our records have and so please take time to check these on our website and update them if required.

Will the 2% automatically be taken back if RPI in August 09 is worst than -3.5% ?
No. The union have committed to discuss the financial position of the company with management in this situation however this does not mean that you will lose any money received as part of this deal automatically.

The company has paid a large dividend this year, why should we accept this offer?
The dividend was paid as a result of the sale of the Heathrow old control tower. This is a one off payment and is not a recurring  annual cost to NATS unlike any pay offer. As you will see from previous NTUS statements, the unions made strong representations to management about the amount of money leaving the business as we are in opposition to this. This is not a decision that we had any involvement in , nor could have done, however it should also be remembered that as shareholders ourselves then we too have taken a share in the dividend pay out and this was awarded to us in April 09 pay cheques. The pay out also gave the NTUS a strong bargaining tool to use with NATS to back up our argument that all employees deserved a pay award and was instrumental in terms of our negotiating power.

When will we receive the money in the event of a ‘yes vote’?
It is hoped that the money would be in July or August pay however this is subject to a number of factors and we’ll update you with exact details when appropriate.

What are the details of our sectional claim and when this will be resolved?
The sectional claim was submitted last September and can be downloaded HERE. At the moment there are no proposals being made on progressing the items detailed as they have not formed part of the pay proposal from NATS. This is because the offer is no ’strings attached’ in it’s style which offers a basic rise in pay without any changes to working practises or terms and conditions. Indeed the offer was based on the NTUS agreeing that elements of the respective sectional claims may not be addressed.  The company has however indicated that they may wish to look at some of the issues before September this year but at the moment there are no meetings scheduled to move this forward and there is no agreement that this will definitely take place. The BEC will keep members fully informed if that changes and as normal any amendments to terms and conditions to would be subject to a ballot.