CAPITA TVL: 2023 PAY AGREEMENT, INCLUDING CONSOLIDATION OF COMMISSION MONIES, FOR FIELD MEMBERS
We are pleased to advise Branches the Postal Executive has unanimously endorsed a Pay Agreement for our Capita TVL Field members, which applies from 1st April 2023.
New Basic Pensionable Pay of £30,000 Per Annum for Visiting Officers from 1st September 2023
The vast majority of our Field members are Visiting Officers. The pay agreement includes an increase to the basic starting salary for VO’s from £23,680 to £30,000 per annum, an increase of £6,320 (26.7%) on basic pay. This increase is made up of a combination of new money and the consolidation of ALL commission scheme monies. There are many different rates of pay for the various grades of Field members, making this a complex matter; the full details of what this means for our members are contained within the attached pay offer letter from Paul Johnston, Partnership Director dated 13th July.
We have had a long-standing joint commitment with TVL management to review the Field commission scheme. Our policy has always been for commission monies to ideally be consolidated into basic pensionable pay, and this was our primary objective in this year’s pay negotiations. Therefore, we are pleased we have now reached agreement to wind up the Field commission scheme (from 31st August 2023) and recycle ALL of the monies into base pay. This means on average across the Field, the Agreement is worth 9.5% overall.
Lump Sum Payment of £650 (In Lieu of a Pay Rise from 1st April to 31stAugust)
As our members will earn commission scheme payments for April – August inclusive, and coupled with the fact the new pay rates are introduced from 1stSeptember, the pay agreement includes a £650 one-off lump sum payment (pro-rata for part-timers). This approach supports the migration from the old pay rates to the new pay rates and ensures our members do not lose out for the five-month period from the pay review date of 1st April to the introduction of the new £30k pay rate (from 1st September). This one-off payment of £650 (pro-rata for part-timers) is equivalent to 6.75% for those on a standard salary.
Transition Payment of a Minimum of £500 for VO’s
We have been assured via data and modelling shared by management that c.75% of VO’s will either be positively impacted by the new arrangements of £30k basic pensionable pay or will see no change to their overall earnings. To assist those members who earnt higher commission payments in 2022 there will be a one-off “transition” payment representing 15% of the reduction in pay based on 2022 earnings. This is underpinned with a safety net of a minimum £500 one-off payment. Those members who lose more than £500 get the 15%.
Company Car
The Agreement allows for the provision of a Company Car, Car Allowance (£3,700 per annum, pro-rata for part-timers) or retention of the private mileage option for those who qualify.
Ballot Timetable
The following ballot timetable has been agreed with the SDGS Department:
- Ballot papers despatched Monday 24th July
- Ballot papers returned and result declared Friday 11th August
The above timetable will allow for the £650 lump sum payment to be made with the August salaries.
Darwen & Bristol – Contact Centres & Admin
Due to the entirely different nature of the work for our members working in the Bristol Admin Unit and Darwen Contact Centre (and the relevance of Capita’s policy in regards to the Real Living Wage which impacts upon the majority of these members) these pay negotiations are taking place separately. Capita has made a pay offer for these members which we will be reviewing. This does not involve any commission scheme monies as these members don’t earn commission. Further developments in this area will be reported.
Conclusion
Commission scheme payments are not guaranteed, not pensionable and they are not paid for sick or annual leave and in reality the high earners essentially perform many additional unpaid hours over and above their contracted hours in order to earn high commission payments. The obvious benefits of consolidating commission scheme monies include all of these factors, along with the hourly rate increasing which flows through to the overtime rates. Due to the nature of the commission scheme (which was based on an individual’s performance) and the variations between the amounts earned across the membership, the new arrangements mean there will be significantly more winners than losers with the consolidation.
This new pay agreement will support Capita’s plans to recruit another 70 VO’s and it is essential they offer a more competitive pay & reward package. Coupled with the new £30k basic pay rate will be the offer of a company car.
The Postal Executive believes that the consolidation of ALL commission scheme monies leads to a fairer and more equitable distribution of earnings for the work performed by all VO’s. We also believe there will be an improvement in work-life balance as our members won’t need to work over and above their conditioned hours in pursuit of commission payments and crucially they will have the benefit of the increased basic pay, which is guaranteed. By incorporating the scheme monies into the basic salary we are safeguarding all current earnings for the future.
Yours sincerely
Andy Furey
A/Deputy General Secretary (Postal)
CWU Eastern No5 Branch 
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