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Prospect recommends three-year pay deal to EDF nuclear staff

11 July 2014

Prospect is recommending that members in EDF Energy Nuclear Generation accept an improved three-year pay offer – with a 2.5% increase in 2014 – as the best that can be achieved by negotiations.

The offer comprises:

  • in year one (2014) a 2.5% increase in salaries and what the company describes as “flowthroughs” (issues like overtime and shift pay)
  • in year two (2015) an increase of CPI + 0.5% or RPI, whichever is greater, in salaries and flowthroughs
  • in year three (2016) an increase of CPI + 0.5% or RPI, whichever is greater, in salaries and flowthroughs.

It was agreed that in years two and three the figures above will be based on the May (published in June) government figures for CPI and RPI and will be moderated by a floor of 1% and a ceiling of 4%.

The payments in each year will be effective from 1 July.

Prospect and the other unions ruled against recommending an initial offer that would have been based on the consumer prices index of inflation, with a freeze on flowthroughs.

Unions are holding a series of site meetings to explain the offer to staff.

Ballot arrangements

The ballot will be carried out electronically, using the Snap survey system. Votes will be completely secret and soon each member will be sent their unique ballot login information. Members should respond by no later than midday on Friday 15 August.

The negotiations

In negotiations the unions pointed out that in 2013 the across-the-board element of the pay offer was 0.6% below the inflation rate. They highlighted the continuing impressive performance of the company, both in terms of electricity production and health and safety, which had contributed to significant profits in the nuclear generation part of the business.

The company thanked staff for their role in its good performance but said nearly all of the profit had been reinvested in lifetime plant extensions and nuclear new build.

It said a long-term pay deal would bring stability and certainty to the company and employees at a time when the price of electricity from nuclear generation is falling. The regulator Ofgem is also about to begin a review of the big six energy companies, which will put downward pressure on them in relation to controllable costs, including pay.

Prospect national secretary Alan Leighton said: “Eventually we were able to persuade management that we needed an increase for this year ahead of the current RPI rate (currently 2.4%), that it should drop the proposal to freeze flowthroughs and that we should ensure that there was a link with RPI.

“It was clear during negotiations that the company would like to move to CPI as the key indicator for future reference.

“The final offer reflects both the company position on CPI and our determination to ensure that RPI is the key index. It ensures a degree of certainty and safeguard for both sides.”

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