Pay Negotiations 2011 – Alstom Metro Trains – Blue-Collar Group.

Summary of final offer agreed with the to the RMT Trade Union representatives on 26 October 2011.

In response to the pay claim from the trade unions, the Company has extensively listened to our staff and the RMT and this paper sets out the agreed terms
of the offer as follows;

Basic Rates of Pay

1. An increase in basic rates of pay effective from 1^st April 2011 as follows;

· A 2 year pay deal effective from 1^st April 2011 – 31^st March 2013

• Year 1, = 4% on basic pay
• Year 2, = 4% on basic pay + £400 Olympic attendance bonus* and a £400 operating Olympic bonus** for the 6 week Olympic period of the 2012 games.

For the purpose of this agreement the Olympic period is from 27 July 12 – 9 September 2012.

*Olympic attendance bonus, for the Olympic period. Payments will be made on a pro rata basis based on attended shifts / work days, against those rostered
during this time. E.g. if you are rostered to work 20 shifts and work 15 (or 75%) you will receive £300.

**Operating Olympic bonus will be paid based in accordance with the above attendance calculation. The operating Olympic bonus will be output based; availability offering is a minimum of 91 trains + 3 spares daily, Lost Customer Hours below 7000 hrs, and Mean Distance between Failures (reliability) above 10000 km as contracted to by Tube Lines within a 1 week period.

Targets will be published each week and where a target is not met over the Olympic period no bonus payments will be made for that week.

For Example;

• If you attend work for the whole of the Olympic Period (£400) and Metro meet its operating targets (£400) you will receive £800 Olympic bonus payment.
• If you attend work for 50% of the Olympic Period (£200) and Metro meet its operating targets (£400) you will receive a £600 Olympic bonus payment
• If you attend work for whole of the Olympic Period (£400) and Metro only meet 75% of its operating targets (£300) you will receive a £700 Olympic bonus
  payment. etc

The only exception where non-attendance bonus payments will be made during the Olympic Period will be for compassionate purposes only based on Alstom
guidelines.

Spirit of agreement during the Olympic Period

The Company and the RMT now commit to follow a binding special procedure for dispute resolution for all disputes arising in preparation for or during the Olympic Period, as follows.

During the Olympic Period and for the preceding month any dispute which the RMT has with the Company shall, if it cannot be resolved by the parties, be referred to ACAS and both parties now commit to participate fully in good faith in the ACAS conciliation process and to abide by any recommendations made by ACAS to resolve the dispute in question. The RMT undertakes that it will not ballot its members or induce them to take industrial action during this conciliation process and the Company undertakes that it will suspend any disciplinary proceedings which might lead to the dismissal of any member of staff in grades represented by the RMT during the Olympic Period and for the month preceding that period until after the Olympic Games have finished.

Assistance with Travel Costs

2. It is agreed to offer a level of support with the cost of an annual season ticket by making a refund of £1,300, for a further two years. This is to be reviewed in April 2013

As regards the offer of travel assistance, as detailed above, it must be noted that the assistance payments proposed will NOT be provided where the following circumstances apply;

• Where employees already receive Oyster Cards or other annual season tickets as part of their transferred terms and conditions from a former employer.
• Where employees travel to work using their own methods of transport i.e. car, motorcycle, bicycle etc.
• Where an employee travels to and from work by public transport but does not hold an ANNUAL season ticket that has been purchased using the Company’s annual season ticket loan facility.

It must also be noted that any financial assistance given to employees that relates to travel to and from work, as described above, will be treated as a taxable benefit by the Inland Revenue.

The Company therefore reserves the right to withdraw or, alternatively, reduce the level of support provided towards assistance with travel costs from 1 ^st April 2013 and beyond. The Company however is committed to continuing with offering this benefit if at all possible.

Appraisal for all

During 2012 / 13, through full consultation with the RMT local representatives, Metro intends to introduce an annual interview scheme in August 2012, called “Appraisal for all”. This allows BC workers to have an opportunity to discuss with their manager their performance, training and development needs, opportunities to progress and be set targets for the next 12 months. It is not linked to the Olympic or pay deal.

Dated 1.11.2011