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Lloyds TSB: Pay – Old Wine In New Bottles
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Date: 27th Feb 2004
Lloyds TSB Group Union is arguing that the Bank’s offer of a 3.5% pay pot, for an organisation which analysts are now predicting will post pre-tax profits of some £4.2 billion, will fall well short of the amount required to pay fully competent and experienced staff the ‘rate for the job’.
The Bank has said that it needs 2.1% out of that pot just to keep staff at the same position they are now relative to the market but the fact is that when you strip out that 2.1% it leaves just 1.4% to move staff through the new pay zones announced by the Bank this year as part of its new pay structure.
LTU believes that is clearly not enough if the Bank is to meet its own new ‘commitment’ of getting staff to the ‘market’ zone in 2 to 3 years. And don’t forget it never achieved its old commitment of getting staff to the ‘market indicator’; the Bank’s previous name for what it regarded as the ‘rate for the job’.
Chief Executive Eric Daniels has said that he wants to create a high performance organisation. LTU says that if he believes that, why has the Bank not felt able to ‘put its money where its mouth is’ and provide sufficient funds in the pay pot to allow the Bank to meet its own commitments?
The Union argues that the Bank is currently in very real danger of allowing the introduction of a new pay system not so very different from the old and with insufficient financial backing to make any real difference to its staff.
The bottle may be different but what’s inside is essentially the same.
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