Thames Water workers to vote on improved pay offer

Thames Water workers are set to vote on an improved pay offer after knocking back the original renumeration package tabled by management.

Following the overwhelming rejection of the company’s 3% pay rise offer by members of GMB and other unions, Thames tabled an improved 4% offer.

GMB said that it felt the offer “still fell short of what the water sector is paying and the continued impact of the cost-of-living crisis”.

Following further negotiations Thames has agreed to:

• A 4.2% increase to base salaries for all eligible employees in Grades A&B effective from 1 July. This also includes colleagues who are “red circled” i.e. above the top of their pay bands.
• A 4.2% increase to standby, shift and call-out allowances effective from 1 July.
• A guaranteed final non-consolidated lump sum bonus payment for 2024/2025 of £1,250, to be paid in the earliest possible pay period after 1 July 24.

The 4.2% pay increase on offer is in line with pay offers agreed by other water companies including Affinity, South West Water, Bristol Water and Welsh Water.

Southern Water has negotiated a 4.3% raise for its workforce, while Northumbrian has offered a 4.9% pay rise. United Utilities, Severn Trent and Wessex Water have all negotiated 5% increases and Scottish Water has agreed to a 10.1% rise.

A GMB spokesperson said: “We feel that this is a significant improvement and the best achievable through negotiation and therefore we are recommending our members accept this offer.”

The ballot closes tomorrow (21 June).

As part of the offer the company has also pledged to review pay bands annually against market data and discuss a partnership with unions as part of the annual pay review.

In the previous ballot, held in May, just 2% of GMB members accepted Thames’ 3% offer. 97% of Unite members also rejected the offer and only 7% of Unison members were happy with the original pay rise on offer.

A joint letter sent by the leaders of the three trade unions also reveals workers are concerned that Thames’ ongoing financial uncertainty will impact on pay rise negotiations for frontline workers.

It states: “We are aware of a growing concern from our membership around the stability and future of the company, and how any pay settlement this year may impact the company’s position.

“However, Thames Water has continued to maintain its position that it is well funded until the end of the current AMP period with £2.4 billion in liquid assets.

This was further re-enforced in a recently public Q&A session with Thames boss Chris Weston where he re-assured staff that the current financial constraints would not have an impact on frontline staff pay negotiations due to the company having already forecasted and budgeted for such increases.

The letter adds: “Our members have continued to significantly contribute to Thames Water’s operating profitability despite reductions in the workforce and carrying out more duties with less resource. It is our firm belief that this should be rewarded.”