Santander ‘final’ pay offer out to ballot with strong vote ‘YES’ recommendation

Santander January 15 2024

Members across Santander UK are being urged to accept a simplified one-year pay deal that delivers total average increases exceeding 6% for the vast majority of CWU represented grade employees, a cash lump sum and one extra day off for everyone in 2024.

The Bank’s final offer – which emerged during intensive talks just before Christmas and is now subject to a consultative ballot which commences today (January 15) – includes a minimum pay award of the greater of 4.5% or £1,300 (pro-rata for part timers) for all S1-2 grade employees – notwithstanding the Bank’s existing Pay Progression arrangements.

For the majority of members that increase is fully consolidated – though for those already earning above the maximum of their pay range the award will either be unconsolidated or split into consolidated and non-consolidated elements as appropriate, unless special ‘protected arrangements’ apply.

Taken in conjunction with a new minimum entry level (S1:P1) salary of £22,400 – an uplift of 5.7% on the current £21,200 – and 5% and 4% respective minimum increases (automatically consolidated) in the S1 and S2 pay range midpoints, most of those in the two most populous CWU-represented grades will receive overall rises averaging 8.5% and 6.1% respectively on March 1, assuming the deal is ratified.

In line with the union’s objective of securing a further cash payment for all members, the package includes an unconsolidated lump sum that will be paid in February to all CWU-represented grades.  Worth £450 for S1s, £400 for S2s and £300 for S3s, S4s and S5s, that payment is not pro-rated, and will therefore be paid in full to part-timers, regardless of the number of hours they work. Paid in February, a month prior to the pay award becoming effective, this will be a welcome boost to post-Christmas finances.

The proposed CWU-brokered settlement maintains a pay progression scheme previously negotiated by the union for S1 and customer facing S2 grade employees in Santander UK that is unique in the banking industry.

And, in a sector where performance-related rises are the norm, the headline pay deal is importantly not performance-related – applying to everyone apart from those with a 2023 performance rating of ‘Not Achieved’. The CWU successfully argued, however, that those individuals will still qualify for the cash lump sum payment, which will be paid to all in the collective bargaining group.

For S3 band colleagues the deal on the table provides for fully consolidated rises of 3.5% up to individuals’ pay range maximum (unconsolidated after that) and targeted increases to salary range midpoints – delivering average pay increases of 4%.

Other highlights of the deal, which is set out in detail in Santander Members’ Bulletin No.01/2024,  include:

  • An improvement to Santander’s already industry-leading family friendly policies that extends fully paid Company Paternity Leave from 3 to 4 weeks – meaning a total entitlement to 6 weeks Paternity Leave (2 weeks Statutory and 4 weeks of fully paid Company leave)
  • The same increase applying to Adoption Leave, also coming into effect on March 1
  • An additional one-off day’s leave in 2024 for all S1-S5 colleagues.

CWU Telecoms & Financial Services (TFS) Executive member and Santander National Committee chair, Gordon Johnston – who led the union’s team in intensive talks with the Bank – told CWU News: “Against a backdrop of strong third quarter financial results, tempered with inflation continuing to fall, the CWU’s objective from the outset of the 2024 pay talks has been to negotiate an award that fairly recognises our all members’ contribution to Santander’s performance.

“Our other key objective has been the negotiation of a further cash payment for all grades across the Bank to support members with the continuing challenges of the cost-of-living.

“It’s the firm view of the Santander National Committee is that we have delivered on both counts – securing a strong final offer that compares favourably with other pay deals in the sector.

Santander National Committee vice chair and Bootle Financial Services Branch secretary Tracey Griffiths agrees: “The Santander National Committee has no doubt that this is the best pay deal that can be negotiated,” she stresses.”As such we wholeheartedly commend the deal to members and urge them to vote ‘YES’ in the forthcoming ballot.”

  *   See the deal in detail here and information on the ballot timetable and member consultation meetings here