Unite the Union Members' Pay Claim for THE CO-OPERATIVE BANK P.L.C. 2025
Unite the Union Members' Pay Claim for
THE CO-OPERATIVE BANK P.L.C.
2024 - 2025
Claim produced 03 December 2024 11:18:20
MAIN HEADINGS OF CLAIM
The claim on behalf of our members is for:
■ A Substantial Increase in Pay (across all grades)
■ Enhancements to the existing sick pay scheme
■ Agreement to continue to undertake Equal Pay Audits
■ Role Re-evaluation
■ Standby & Call Out Payments
ABILITY TO PAY
The parent company of THE CO-OPERATIVE BANK P.L.C. (THE CO-OPERATIVE BANK HOLDINGS P.L.C.) has had a very impressive financial performance. Our members must now be rewarded for the success they have contributed to. The following examples from the 12/2023 accounts prove that THE CO-OPERATIVE BANK HOLDINGS P.L.C. is well positioned to meet our request:
Key Figures from THE CO-OPERATIVE BANK HOLDINGS P.L.C. Accounts 12/2023
| ACCOUNTS ITEM | 2022 | 2023 | % CHANGE |
|---|---|---|---|
| TURNOVER | £755.9m | £1.2bn | 61.2% |
| TURNOVER PER EMPLOYEE | £282,368 | £368,744 | 30.6% |
■ An increase in turnover of 61.2% to £1.2bn
■ An increased turnover per employee to £368,744
Key Figures from THE CO-OPERATIVE BANK HOLDINGS P.L.C. Accounts 12/2023
| ACCOUNTS ITEM | % CHANGE |
|---|---|
| PROFIT MARGIN FROM THE CO-OPERATIVE BANK HOLDINGS P.L.C. ACCOUNTS 12/2023 | 5.86% |
■ A pre-tax profit of 5.86% of turnover
Our members therefore expect to share in this success, knowing full well that the CO-OPERATIVE BANK HOLDINGS P.L.C. can comfortably meet this claim in full.
THE COST OF LIVING
Year-on-year rises in the cost of living are a direct hit to the livelihoods of Unite members. While THE CO-OPERATIVE BANK P.L.C. can plan to offset the inflation of its operating costs, this option is not open to our members outside of this claim. The evidence below proves that the Bank must significantly increase rates of pay in this year's pay round.
The UK's Retail Prices Index (RPI) increased to 3.4% in the year to October 2024.
Retail Prices Index (RPI) Changes for the 12 months to October 2024.¹
| RPI BASIC ITEMS² | THIS YEAR |
|---|---|
| ALL ITEMS | 3.4% |
| Alcohol & tobacco | 4.8% |
| Clothing & footwear | 7.1% |
| Leisure Services | 5.7% |
| Fares & other transport costs | 6.2% |
| All services | 5% |
Source: Office for National Statistics, November 2024
Transport Costs
The cost of transport has increased 6.2% over the last year. This is higher than the UK's overall RPI figure.
Transport is a basic amenity and transport inflation creates unavoidable costs, including an increase in the cost of getting to and from work. As with other core expenses, such essential travel takes up a greater proportion of our members' earnings than it does for higher paid staff within the organisation.
¹https://www.ons.gov.uk/economy/inflationandpriceindices/datasets/consumerpriceinflation
Table 41
²https://www.ons.gov.uk/economy/inflationandpriceindices/timeseries/dogd/mm23
ITEMS OF THE CLAIM
A Substantial Increase in Pay
On the grounds set out above, our members are demanding a substantial pay increase above inflation in both grades C and D.
Enhancements to Sick Pay Scheme
Our claim calls for further enhancements to the sick pay scheme, which is not currently sufficient to always protect our members' finances when they fall ill. Full occupational sick pay is only available after 5 years’ service. We believe this is inequitable for younger workers, and those with shorter service who are no less loyal and hardworking.
We are also keen to discuss the current application of the existing sick pay provisions. The indication of potential options meeting (which may result in dismissal) is frequently made long before full sick pay has been exhausted, which questions the true value of the current sickness benefit.
This is not only bad for Unite members, it is also bad for the organisation. Exposing employees to financial risk in times of illness has negative impacts on morale and staff retention. Furthermore, studies have shown that failure to provide sufficient extra-statutory sick pay can have adverse effects on productivity by encouraging presenteeism (ill workers attending work).¹
Conversely, providing a decent level of sick pay can significantly boost productivity and increase profitability.²
¹https://wpieconomics.com/site/wp-content/uploads/2023/07/01.-WPI-Economics-Making-SSP-Work-FINAL.pdf
²https://www.lebow.drexel.edu/news/do-paid-sick-leave-mandates-increase-productivity
Agreement to Undertake Equal Pay Audits
Our members wish to see the Bank continuing the practice of undertaking a gender based equal pay audit post ASR.
In addition, as per the recent announcements made by the government, we are keen to see the practice further extend to the issues of disability and race as soon as possible.
The audits should continue to be organisation wide and must have the active involvement of Senior Union Reps.
As a minimum, these audits should:
■ Identify any differences in pay
■ Investigate the causes of any differences in pay
■ Eliminate any instances of unequal pay that cannot be justified.
¹https://www.equalityhumanrights.com/guidance/equal-pay
²https://www.equalityhumanrights.com/guidance/equal-pay/why-equal-pay-matters
Role Re-evaluation
The Bank has contracted significantly in recent years, and staff have adapted to absorb work previously done by others. Many staff are no longer confident their role descriptions accurately reflect what they actually do, and are consequently unsure if their pay is fair and equitable. It has been a number of years since a full role evaluation was undertaken, and we believe it is now overdue. We request the Bank recognise this disconnect and commit to undertake a full role evaluation.
Standby & Call Out Payments
Whilst there was some movement on this issue last year, there still remains significant room for improvement and a need to address the legacy disparities.
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