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advance magazine Your voice at work Editor: Linda Rolph General Secretary

Special edition  |  2011 Pay Negotiations

telephone: 01442 891122

2011 Pay Negotiations

So, what have we agreed?

Advance met with Santander UK’s Senior Management Team throughout January to negotiate the 2011 pay awards. Our objective was to get the best possible deal for our members in a very difficult economic environment where many banks (and indeed, many high-profile companies in general) are either not giving pay rises at all, reducing jobs or individual’s working hours. Negotiations were tough and Santander UK’s Chief Economist, Barry Naisbitt, explained his predictions for 2011, referring to increased regulation, more supervision in the Financial Services industry, the introduction of the Bank Levy by the Government and reduced numbers of mortgages being approved despite low interest rates. Advance reminded management of how strong Santander’s current position is compared to many of their competitors and the fact that their half-year results were positive with their year-end results looking promising. We emphasised the immense contribution that you have made once again to the profits of Santander under extremely challenging circumstances due to the economy. Negotiations continued throughout January and both Advance and management gave opinions and options on the way forward. Advance understands that whilst Santander have achieved many of their main objectives including an improvement to customer service,there was an acknowledgement that this needs to continue in 2011. Prior to Pay discussions Advance continued to request additional staff to address customer service issues: we were delighted when an additional 1,000 front-line roles were introduced to branches and call centres.

Pay Matrix Members in Bands S1-5 will receive a fixed percentage increase based on their year-end performance rating and position in the salary range for their role.

The matrix that will apply from 1st March 2011 provides a guaranteed pay award of 3.10% for successful performers at midpoint (97% - 102.99%).

Advance have negotiated that managerial discretion will not be applied across the matrix for the 2011 agreement.

Members must have been employed on or before 1st November 2010 and still be employed on 1st March 2011 to be eligible for the 2011 pay review.

At the Pay discussions Advance’s negotiating team consisted of:

Position in Salary Range % of midpoint






80% - 89.99%






Linda Rolph

General Secretary

90% - 96.99%






Rose O’Neill

Assistant General Secretary

97% - 102.99%






Richard Mellows

Assistant General Secretary

103% - 109.99%






110% - 119.99%






Jim Leonard

National Chair

Gerry Moloney,

Head of Communications

Roberta Barbour

National Vice-Chair

Caroline Stephens NEC representative, South-West & Wales Sue Grundy

NEC representative, North-West & Yorkshire

Keith Hoyland

NEC representative, Risk

Salary Ranges

Minimum National Starting Salary

All salary ranges will be uplifted by 2.5% with effect from 1st March 2011 and the 2011 pay agreement will then be applied.

Advance raised the issue that we wanted to see an improvement to starting salaries. We are pleased to say that it was agreed that the new minimum national starting salary of £12,250 has been agreed for new entrants with effect from 1st March 2011. This minimum will apply to all roles within Santander UK. This will uplift the salaries of many of our members.

Minimum Payments


Santander Asset Management

Advance have negotiated that minimum increases to salary will apply as follows for members eligible to participate in the pay review, with a performance rating of CP, SP, OP and EP, and who are paid less than 120% of midpoint. These payments will be prorated for part-time colleagues.


Santander Consumer Finance



Santander Global Banking & Markets

Minimum increase of £400 for SP & above paid less than 103%.


Santander Cards



Santander Private Banking

Minimum increase of £350 for SP & above paid between 103% - 120%. Minimum increase of £200 for CP below 120%.

To be clear, this Pay award applies to all Santander UK employees in Bands S1 to S5 including:


Santander Insurance



Santander Global Facilities


Santander Universities

Payments above the Maximum of the Pay Range



It does not apply to Geoban, Isban, Produban and Santander’s operations off-shore.

Advance were concerned that members who are paid at 120% or above of the maximum of the pay range should receive a reward for their work. It was finally agreed to provide these members with a non-consolidated payment based on their year-end performance rating as follows: ●●

CP - £200


SP - 1.50%


OP - 1.70%


EP - 1.90%.

Pay and Grading Simplification Advance have negotiated for a joint review to take place to simplify pay and grading during 2011. This should be operational by the time that the 2012 Pay negotiations take place.

Pay Progression Although out of scope of the pay negotiations, Advance have ensured that Santander will commit to the implementation of a National Pay Progression Scheme. Terms of Reference, including the timeline for negotiations, will be scoped and agreed by the end of February 2011. Advance also negotiated the following commitments: ●●

Santander will commit a pot of money that is separate to the pay review to fund pay progression.


The aim of pay progression will be to clearly determine the length of time it takes an individual to progress through the salary range, subject to performance.


The Group scheme will be centrally administered within HR to ensure consistent application.


The priority will be to introduce the new scheme into Retail Distribution in 2011.

Improved Performance

Pay Progression (continued)

Employees with an IP performance rating below 120% will receive a consolidated pay award equivalent to that of a CP performance rating, for six months, subject to their performance having improved to CP or above by 1st September 2011.

We are delighted to report that we have also secured an agreement that all employees with at least 12 months service rated as a successful performer or above will move to an hourly rate of £7.41 (£13,500 per annum, pro-rated for part time / annualised hours) by March 2012.

Employees with an IP performance rating above 120% will receive a non-consolidated pay award equivalent to that of a CP performance rating, for six months, subject to their performance having improved to CP or above by 1st September 2011.

Continued over leaf >


Performance Management Advance wanted to see a fairer process for appealing against mid-year ratings. We discussed the need to introduce an appeals process which has now been agreed. Specifically, a new process will be implemented for the mid-year 2011 performance reviews that will include the requirement for Line Managers, during consistency sessions, to provide evidence justifying why an IP or CP rating is to be given. Advance will be attending many of these meetings. A joint review of the performance management policy will be undertaken during 2011. The terms of reference and scope of this will be agreed with senior management by the end of March 2011. As part of the process to analyse the distribution of the end-ofyear performance curves, it has been agreed that if Advance has specific concerns regarding any awards, these cases will be investigated. Santander will also share a summary of appeals analysis with us. The effective date for pay increases will be 1st March 2011.

Allowances Non-pay related allowances will be increased by 2.5% with effect from 1st March 2011. Specifically these are Call-out pay, IT Stand-by rate, Dirt & Dust and meal allowances.

Notification of Advance’s Annual General Meeting Advance’s 2011 Annual General Meeting will take place on Thursday, 12 May 2011 at: Santander House, 2 Triton Square, London Room 5F/5VC at 1.30 PM

Any pay-related allowances, such as extra-responsibility allowances or overtime payments, will be recalculated in line with any increases in pay. Car allowances remain unchanged.

Finally The Pay award that Advance has secured for our members is the best award in the sector with an award of 3.1% for a successful performance at midpoint. This is over 20% higher than awards made by other banks, and indeed, many other companies in other sectors of the economy. If you wish to provide feedback or if you have any questions please contact the Advance helpline team on 01442 891122: they will provide you with the contact number of either Linda Rolph or that of one of her senior team.

Election Update Advance’s elections have now closed except for vacancies for National Executive Committee positions in the North division, the West & Wales division and for UK Global Business and for local representatives for these areas.

advance 2nd Floor, 16/17 High Street, Tring, Hertfordshire HP23 5AH. Telephone: 01442 891122

2011 Santander Spring 2011  

Advance/Santnader Pay Mag 2011

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