Unite Fujitsu News

Company 2009 Pay Offer -13th February

Thank you for your pay claim of 20th October 2008.

This year’s pay review is set against the background of an unprecedented global economic situation. While the impact on the company is not likely to be as dramatic as for those in other sectors we are finding already that customers, mindful of their financial positions, are pushing us to reduce charges and are reconsidering future plans. We need therefore to be even more mindful than usual of expenditure in order to maintain our competitive position in the marketplace.

Despite the uncertainty that this situation causes, the Company is pleased to be able to offer a pay review from 1st April 2009.

Outlined below is the 2009 Company Pay offer for employees within the Unite Manchester bargaining unit.

Pay Principles – April 2009 review

We have previously indicated that a priority will be rewarding high levels of performance, balanced against a review of an individual’s salary relative to the internal comparators for their role. We have also indicated the need to ensure some discretionary pay budget is available to Managers to recognise additional factors such as the size of an individual’s role and scarcity of their skill-set. The guidelines for the “standard” pay review also include key principles to which we will adhere.

At the outset of negotiations, we agreed a collective goal to ensure the pay review is easy to understand, equitable and agreed as soon as possible, to ensure it can be implemented for 1st April 2009.

We have a budget of 2.5% for the April 2009 pay review. If additional funds become available during the year, employees in the bargaining unit will have access to these on the same basis as those outside of the bargaining unit.

If Managers have difficulty meeting the commitments outlined below, due to the pay and performance profile of the individuals they manage in the bargaining unit, they should raise this up their management chain for assistance.

Company Pay Offer – 2009 review

1. This offer applies to all employees within the UNITE Manchester bargaining unit, except for five employees on the Graduate Scheme whose pay is managed centrally.
2. Most employees are managed on a pay system based on the median pay of Fujitsu Services’ UK employees in a particular professional community role. Employees in Customer Services’ Region 1 Service Desks on role codes TSS1, TSS2 and TSM1 are managed on the “D1-D4” pay system. In addition there are thirty-five employees not on the D1-D4 system for whom no median pay figure is available.
3. When referring to an individual’s basic pay, this is the individual’s “reference” salary i.e. before any Salary Swap choices.
4. The lower comparator for employees managed on the “medians” is 75% of the median for their role. The lower comparator for employees managed on the D1-D4 system is the minimum figure defined for their D1-D4 level within their professional community role.
5. For part-time employees, pay, comparators, increases etc will be calculated pro-rata in relation to a full-time employee with a 37 hour week, except for employees in TSS/1 in Customer Services Engineering or TSS/1, TSS/2 and TSM/1 in Customer Services Service Desks where a 40 hour week is the norm.
6. Where relevant, employees will receive an increase to bring their basic pay to the applicable lower comparator. This will be funded outside of the 2.5% budget and the pay review will be calculated on the basis of this increased rate of pay. For clarity, for those managed on the D1-D4 framework, this relates to their D1-D4 level prior to the review and not progression up the D1-D4 structure this year which is dealt with separately below.
7. All employees will then receive a 1% or £200 increase in basic pay, whichever is the larger (but see section 4 above on part time employees). This “cost of living” increase is calculated based on the individual’s pay after any increase to bring them up to their lower comparator.
8. For employees managed under the D1-D4 framework, the following will also apply: i) Managers are having 1:1 reviews with each employee to compare their capability against the D1-D4 criteria and determine their new level. ii) As in the past, D1-D4 scales are based on capability (including performance) as set out in the level descriptions. Work not being available at the level of the employee’s capability is not a reason for refusing progression up the levels. Employees will never be moved down their D1-4 scale unless this is a disciplinary sanction. iii) An increase (where applicable) to bring the basic pay up to the relevant lower comparator for their latest D1-D4 level. iv) An increase (where applicable) to basic pay of at least that set out in the matrix below, based on performance (PAC) and current pay. v) An increase (where applicable) to basic pay allocated at managers discretion (see below) and within the pay budget.
9. For employees managed using the medians, the following will also apply: i) An increase (where applicable) to basic pay of at least that set out in the matrix below, based on performance (PAC) and current pay, and, ii) An increase (where applicable) to basic pay allocated at managers’ discretion (see below) and within the pay budget.
10. For employees with no median available, the “100% of median” column from the matrix for non D1-D4 employees will be used.
11. When allocating any discretionary increases, Managers should consider:
    • Awarding a discretionary increase to employees who had a disturbance allowance consolidated into basic pay in October 2007, as this part of their pay was compensation for additional costs incurred by the employee. This is to ensure that pay increases are still equitable after the matrix has been applied. For the 2009 pay review the company will provide pay planning managers with details of these allowances.
    • the pay principles outlined above
    • employees whose pay falls near the boundary of the bands defined in the matrices below (to avoid anomalies)
    In principle this discretionary element of the pay review should all be allocated to increases in basic pay rather than non-consolidated bonuses. The only possible exceptions are specified in the notes to the matrices.
12. Having reviewed our current D1-D4 pay guidelines and the scales applicable to staff managed on the D1-D4 system against our market benchmarking data, our attrition rates, feedback from our recruitment partners and against the increasingly competitive market conditions it has been decided that we will not be increasing the pay scales for these roles. It should be remembered that whilst we are not increasing the pay scales, all those already in these roles will receive a pay increase as part of this review.
13. If, as part of the normal moderation process, changes to PAC ratings are proposed, these will only be changed following discussion with the employee.
14. Promotional pay rises in April and throughout the year must be clearly distinguished from the pay increases above and funded outside of the budget. For clarity, the term “promotion” is used to mean a change in an individual’s Professional Community Role Code to one with a higher guideline rate of pay. On promotion, an employee is normally paid at least the lower comparator for their new role. Except by agreement with the Union, the only exception to this would be where a lower rate of pay was agreed as part of the acceptance of an “alternative job” (as opposed to a “suitable alternative job”) during redeployment. Any exception will include a plan with specified performance criteria to raise pay to at least their lower guideline level within a year, provided those criteria are met.
15. When an employee changes professional community role, their benefit levels will be reviewed. If the employee’s benefits (e.g. medical, bonus, car) are below the lower guideline level for their role, they will normally be increased to that level. Any exception will be discussed with the employee and an appropriate plan (with timescales) agreed with them, identifying what is required for the company to increase the benefit level to the lower guideline level.
16. It was agreed in 2005 that on promotion, an immediate review should take place with a plan agreed with the individual to include reward and development. By August 2009, the Company will implement a mechanism to monitor and ensure that this consistently takes place. The first meeting with UNITE to discuss this will be by the end of May 2009.
17. The Company is currently reviewing the Expenses Policy and has already decided in principle that it will introduce a mileage allowance for car sharing on business trips. This change will be communicated to employees through the normal channels.
18. As part of its Corporate Responsibility programme, the Company is already developing national schemes to allow employees to purchase annual bus passes at favourable rates and by deduction from salary. When finalised, this change will be communicated to employees.
19. The Company will work with Unite to ensure that this agreement has been implemented fully and fairly. The company will provide information to allow Unite to monitor this by the end of May 2009.
20. The Company is committed to spending the 2.5% budget on pay rises effective from 1st April 2009. If, due to any miscalculation, any of the budget remains after the pay review, the Company will discuss this with Unite and agree how to spend the remaining money on employees.
21. The Company will work with UNITE to create a single Manchester Pay Agreement incorporating the content from this offer with the previous commitments, to make future pay negotiations clearer and simpler. The aim is to have this completed by 23rd April 2009 and the first meeting will be in March.
22. By 1st April 2009 the Company and UNITE will document the company position on the various points in the pay claim and the union’s outline proposals that have not been included in this offer.

MATRICES

Both parties recognise that there are a number of conflicting and legitimate priorities to address in the pay review. In arriving at the figures in this matrix, a balance had to be struck between them due to the limited funds available.

This is the first year using a matrix to provide a transparent link between performance and pay for people in the bargaining unit. Remember that the increases indicated in the matrices are minimums, not maximums, are in addition to the “cost of living” increase and increases at managers’ discretion are also available.

[Matrices and pay scales omitted on website]

I appreciate your cooperative approach to these negotiations and trust this is an offer you can recommend to your members.

Yours sincerely
Larry Upton

Employee Relations Manager

Fujitsu Services.

Position Statement on RISE+

Our approach to development within role in our Service Desk operation has for many years developed through the D1-D4 framework. This framework looked at capabilities and exampled at each level how an employee could progress their capability.

Approximately 18 months ago, we looked at improving D1-D4 through linking more comprehensively to the company competencies and the role specific technical and behavioural competencies. This review involved people from our desks, the HR team, and our People Development Advisers. A pilot was launched and a roll- out plan for RISE+ created.

Across the UK our Desks have embraced this approach and feedback informs us that our employees:

· Appreciate the transparency on recognising achievement
· Like the Desk profiles and the examples of capability at each level, illustrating how personal development within a role can occur
· Understand how the information collated assists in the performance plus processes on appraisal and personal development planning
· Can link their individual capability to the delivery of results

In Manchester D1-D4 has been the bedrock for development and pay review, in Service Desks. It is recognised following feedback and meetings with your Unite Representatives that applying the new RISE+ approach at a time of pay negotiation in Manchester could concern some people. As a result of the issues raised and discussed we have taken the decision to de-link RISE+ from our pay planning process this year and concentrate on using it for its primary purpose – staff development. The result of this is that we will, as in previous years, utilise the D1-D4 approach to feed into our pay planning process.

RISE+ has been integral to the appraisal discussions and the data collected will be invaluable for this year’s personal development planning and discussions our employees have with their managers throughout the year.

We are committed to working with Unite on the replacement of D1-D4 with RISE+ and linking it to the reward processes in future years.

Debbie Stirrop & Richard Batty – Customer Services

For the avoidance of doubt for those in the bargaining unit, there will be a pay review for you, it will be carried out by your manager and increases will be effective from the same date as those outside the bargaining unit.

As stated in the Recognition Agreement, the company and the union are committed to encouraging effective relationships between each employee and their manager, between union members and their representatives, and between the company and the union. The Company recognises the benefits of collective bargaining as an efficient and effective mechanism for dealing with issues that affect groups of employees.

The company has committed to ensuring that its managers and HR team act in accordance with this approach, and to actively policing compliance.

Thank you for your pay claim of the 20th October 2008.

This year’s pay review is set against the background of an unprecedented global economic situation. While the impact on the company is not likely to be as dramatic as for those in other sectors we are finding already that customers, mindful of their financial positions, are pushing us to reduce charges and are reconsidering future plans. We need therefore to be even more mindful than usual of expenditure in order to maintain our competitive position in the marketplace.

Despite the uncertainty that this situation causes, the Company is pleased to be able to offer a pay review from 1st April 2009.

Outlined below are the key elements of the 2009 Company Pay offer for employees within the Unite bargaining unit. Other elements that are included within the Draft offer discussed on 26th January have been excluded for the time being as there are still a number of areas that need further discussion, in particular the situation of employees paid under D1-D4/Rise+ arrangements.

Pay Principles - 2009 review

We have previously indicated that a priority will be rewarding high levels of performance, balanced against a review of individual’s salary relative to the internal comparators for their role. We have also indicated the need to ensure some discretionary pay budget is available to Managers to recognise additional factors such as the size of an individual’s role and scarcity of their skill-set. The guidelines for the “standard” pay review also include key principles.

At the outset of negotiations, we agreed a collective goal to ensure the pay review is easy to understand, equitable and agreed as soon as possible, to ensure it can be implemented for 1st April 2009.

We have a budget of 2.5% for this review.

Company Pay Offer – 2009 review

1. All employees, other than those managed on the D1-D4 or Rise + scale, whose current salary is below 75% of the median for their role will receive an increase to bring their salary to 75% of the median (full-time equivalent). This will be funded outside of the 2.5% budget.
2. A 1% increase in basic pay for all employees within the bargaining unit. This “cost of living” 1% is calculated based on the individual’s salary after any increase to bring them up to 75% of the median.
3. An additional increase (where applicable) to basic salary related to individual performance and salary relative to the pay comparators. This increase to be at least that defined on an agreed matrix. This is in addition to the “cost of living” element.
4. An additional discretionary increase (where applicable) allocated by Managers in accordance with the principles outlined above and within the overall budget. In principle this should all be allocated to increases in basic salary rather than non-consolidated bonuses. The only exceptions would be where people are paid over 125% of the median with exceptional performance
5. The company will provide pay planning managers with details of the disturbance allowances that were consolidated into basic pay in October 2007. In considering the discretionary increases, managers should take into account the fact that this part of their pay was compensation for additional costs incurred by the employee. Impact on D1-D4 employees TBC
6. Customer Services employees managed on the D1-4 or Rise+ systems (typically helpdesks) will be paid at least the minimum salary for the relevant D1-D4 or Rise+ scale for their role. This will be funded within the 2.5% budget.
7. Changes to Rise+ or D1-4 pay scales and other related points TBC.
8. Promotional pay rises must be clearly distinguished from the pay increases above and funded outside of the budget described above. For clarity, the term “promotion” is used to mean a change in an individual’s Professional Community Role code to one with a higher guideline salary. On promotion, an employee is normally paid at least the lower comparator for their new role. Except by agreement with the Union, the only exception to this would be where a lower salary was agreed as part of the acceptance of an “alternative job” (as opposed to a “suitable alternative job”) during redeployment. Any exception will include a plan with specified performance criteria to raise the salary to at least their lower guideline level within a year, provided those criteria are met.
9. It was agreed in 2005 that on promotion, an immediate review should take place with a plan agreed with the individual to include reward and development. By August 2009, the Company will implement a mechanism to monitor and ensure that this consistently takes place. The first meeting with UNITE to discuss this will be by the end of May 2009.
10. The Company will work with Unite to ensure that this agreement has been implemented fully and fairly. The company will provide information to allow Unite to monitor this by the end of May 2009.
11. The Company is committed to spending the 2.5% budget on pay rises effective from 1st April 2009. If, due to any miscalculation, any of the budget remains after the pay review, the Company will discuss this with Unite and agree how to spend the remaining money on employees.

Larry Upton
Employee Relations Manager
4th February 2009