Members shouldn’t be fooled by the headline figures. It’s still a massive pay squeeze.
The bank says for grades A-D staff: “Adding these together (£2000 minimum increase and £500 cash payment) this represents a cash value typically in the range of 8 to 13%”. The reality is that for the vast majority of the 42,000 staff in these grades, the proposed total pay increase is closer to 8% than it is to 13%. And don’t forget that inflation is currently running at 12.6%. So, those getting 8% – the vast majority of staff – are going to be 4.6% worse off. And inflation is set to carry on rising over the next few months, so the pay squeeze is only going to get worse.
For grades E, F & G members, the bank’s proposed pay squeeze is going to mean that they are between 7.6% and 8.1% worse off based on the current rate of inflation. If inflation rises between now and April 2023, which is almost inevitable, then that squeeze is going to be much worse.
So, on the bank’s own figures, all Lloyds staff are going to see their pay fall relative to the cost of living.
And that’s why Lloyds & Accord are trying to rush through these pay awards now because they are concerned that inflation is only going to get worse and staff will demand bigger pay rises next year. It’s a cynical but something we expect from Lloyds and Accord.
We are in uncharted waters and that requires a unique response from the bank. The bank’s latest pay proposals fall significantly short of what is required for all Lloyds staff.
We will be producing a further analysis of the bank’s pay proposals next week. In the meantime, members with any questions can contact the Union’s Bedford Office on 01234 262868 (Choose Option 1).