The idea of rewarding staff based on their skills whilst encouraging them to develop their abilities and expertise sounds appealing in theory, but it’s bound to fail.
Why? Quite simply: cost.
Lloyds is not going to allow all staff to progress to the higher skill levels 3, 4 and 5. It will limit the numbers at those levels, as it does now with grades.
Skill based pay systems were all the rage a few years ago, including in Lloyds Banking Group, but they were soon abandoned because progression was subject to business demand, not the ability of staff. Staff soon became disillusioned when they’d worked that out for themselves.
It will be no different this time.
The Have Nots
Many long serving staff will find themselves above the skill level 2 maximum salary and because Lloyds will limit the number of level 3-5 roles almost all those staff will get nothing from the new pay system. In fact, many of them won’t even get a salary increase should they move up a skill level in future.
Lloyds has also confirmed, in the small print (and where else would it be?) that those staff above the maximum pay for their skill level could get no annual pay increases in future. Shockingly, that was agreed by Accord and Unite. We think that could potentially be thousands of hardworking staff.
Those heritage Lloyds staff on non-harmonised contracts will retain their status even if they qualify for ‘bring to minimum’ salary increases. We don’t expect that many staff will fall into that category. However, if a member on a non-harmonised contract decides to move up a skill level, he or she would have to accept the new harmonised contract. Given that most staff on non-harmonised contracts are female that could be indirectly sex-discriminatory. Members who find themselves in that position should contact the Union’s Bedford Office immediately.
So, even before the new pay system starts on 1st July, a significant number of staff in Grades A + B are going to get nothing. We accept that those who are new to Lloyds or have been in the Bank a few years will get salary increases but that’s only because they have been underpaid for their skill levels relative to the external market. Lloyds is simply paying them the going rate; no more.
Lloyds Will Limit Progression
Lloyds says the new system will be “Linear” with a “greater opportunity to progress.”.
That’s not strictly true. Progression through the skill levels will be closely controlled by Lloyds and will be demand-led. Not everyone in Lloyds is going to be able to progress to Levels 3, 4 and 5. And that’s despite the fact that staff might be performing at the higher skill levels on a regular basis. So, some staff will be doing the higher-level jobs but won’t be getting the higher pay. Lloyds will be getting higher skilled staff for a fraction of what they are worth. That’s one of the main reasons why skilled based pay systems failed in the past. Employees quickly cottoned on that it was a con.
It’s All About Complexity
One of the main problems with the new pay system is its complexity. That must be deliberate.
There have been so many different pay systems introduced over the years in Lloyds, many of them just gimmicks or fads, that staff don’t know whether they are coming or going. That’s how many employers like to manage pay. Robert Maxwell, who plundered millions of pounds from the pension funds of companies he owned and then died in suspicious circumstances when his fraudulent activities caught up with him, once said: “if you keep money moving fast enough nobody really knows what’s going on”. It’s the same with pay systems. The balls are kept up in the air until people get wise to what’s going on and then a new pay system is introduced. In that way the illusion continues and people get suckered in.
Skill based pay is just the latest system.
Lloyds must commit to putting enough money into the new pay system to allow all staff to progress to the skill level they want. All staff regardless of location should have the same opportunity to progress through the levels. It can’t be right that only staff in the largest branches can progress to levels 4 & 5. The Bank must also guarantee that all staff receive an annual salary increase regardless of their position relative to the new salary levels.
Members who have been interviewed as part of the investigation should contact the Union immediately. Members with any questions should contact the Union’s Advice Team on 01234 262868 (Option 1).
MEMBERS SHOULD PASS THIS NEWSLETTER ON TO THEIR COLLEAGUES IN HALIFAX & LLOYDS SO THEY TOO CAN BENEFIT FROM THE ONLY INDEPENDENT TRADE UNION IN LLOYDS BANKING GROUP.