Basis of Arrangements September 2014

2014 Business Change

Understanding between

Heathrow Express and RMT

Version 7 (26 September 2014)

1.Introduction

Heathrow Express and RMT have entered into formal talks under the auspices of ACAS over the matter of the business change proposals for 2014 onwards and the resulting industrial action.

•This arrangements and agreements apply to the following grades represented by the RMT:

oHeathrow Express Train Driver

oTrain Driver Instructor

oCSRs/ECSRs

oCSAs

oCustomer Hosts

oRevenue Centre

oHECR Team

oDSMs

oMSA/Concierge

oResources

oAdministration(Covered by collective arrangement)

•The final pay agreement is conditional on acceptance of the business proposals as set out on 26th February 2014

•The 2015 and 2016 pay settlement is basic RPI based on November 2014 and November 2015 respectively. There will be no basic pay reduction if RPI falls below 0%.

2.Background

The key areas of the business change are:

•protect existing jobs and pay

•meet Heathrow Express operating cost targets over the next five years

•shape the business to compete with Crossrail from 2018, and

•position ourselves to win the right to run trains west to the Thames Valley from 2021.

3.Outline of the Arrangements

Heathrow Express is intending to introduce driver dispatch methodology at its three subterranean stations at Heathrow from the end of 2014 and at Paddington in the future when a satisfactory safe method of Driver Dispatch has been identified and approved. The current method of CSR dispatch will be withdrawn, although the current CSR graded employees will remain in place on the platforms to assist customers and provide the highest level of service and safety.

The type of installation requirements are covered in the section below on Sub-Group.

It should be noted that the current dispatch at Paddington will remain using competent Heathrow Express personnel until a fuller technical solution is achieved.

4.Working Sub-Group

To ensure full compliance and driver input into the installations and methodologyassociated with dispatch, a working party sub-group has been set up. This sub-group is constructed of a managerial project team and representatives from the driver group, including driver RMT representatives.

5.Details of the Agreement

a.RMT agree to fully participate in a constructive working sub group and comply with the staffing arrangements shown below.

b.As a norm the front unit of Heathrow Express services will be staffed with Customer Hosts as part of Heathrow Express plans to place the Driver “in charge” on Connect and Heathrow Express

c.The rear unit of a multiple set in customer operation will always have a competent person on board-in normal circumstances this will be a Customer Host, except in the following circumstances;

i.On single unit Hex services, in extreme circumstances where no CSR is available through normal roster and cover arrangements including additional hours, should this occur frequently reps and company will jointly review the resourcing procedures.

ii.In an emergency situation where an evacuation of the station or airport is required

iii.Where exceptional and extreme situations or circumstances require, such as major incidents, severe weather that prevents staff being available. It is anticipated at the time of agreement that this is likely to be no more that 9 to 15 occasions per year.

iv.In all circumstances for the on-board element on the Inter-Terminal Transfer service, although driver staffing arrangements remain unchanged whilst 15 minute frequency is required.

v.Connect services will be staffed for the majority of journeys (c95% subject to agreement with 3rd party provider) with a security and revenue protection officer; however, the units can run with the driver where no provision is available(as per current arrangements, but extended to airport stations).

d.Heathrow Express plans to introduceDriver in charge to maximise the potential for Heathrow Express to be a reliable proposition for our customers, Heathrow Express remains fully committed to the provision of high quality customer service personnel (in the form of Customer Hosts) on all Heathrow Express services.

e.As an absolute minimum where multiple units are in customer service, a competent person must be provided on the unit not being driven.

f.All personnel working on board will be trained to assist the driver in the event of an incident in the appropriate industry safety requirements.

g.In the extreme case of a driver being incapacitated, the competent person will be required to advise the signaller and use the PA system to keep customers informed. Assistance will be provided to the train in these circumstances.

h.All Hex Employees will also be given Safety, Security and Emergency Awareness training and can be called upon to assist the driver in the event of an incident occurring.

6.Application to CSR and CSA Grade

a.Commitment to take customer service to an exemplary level

b.The revised rosters for CSRs and CSAs (Trains) will be posted by September 30th. Heathrow Express remains committed to constructive working relationships with our recognised Trade Unions. The RMT representatives will have one week to scrutinise these rosters and provide recommendations to the management team for consideration. This process will not delay the implementation date of October 20th

c.In any event, the rosters will be subject to a formal review after a suitable test period under the normal principles

d.All CSR to remain fully trained and competent CSR until it is agreed that they transfer to Customer Host (Protected CSR) positions that do not have dispatch competency as part of their contractual role. This can only happen after there is an agreed safe alternative method of dispatch which has been fully implemented.

e.The new grade structure, staff establishments and pay scales will be introduced from an agreed date. The transfer of the CSAs from Connect to CSA (Trains) on the Hex will come into effect on 29th September.

7.Details of the Pay Agreement

On acceptance of the above conditions the following shall apply:

a.The 2015 and 2016 pay increase will be a minimum of the RPI figure based on November 2014’s actual. If RPOI falls below 0%, no reduction in base salary will be applied.

b.The 2015 pay settlement is basic RPI with further negotiation on the implication and recognition of the extended driver dispatch requirement, applies to Drivers only.

c.Safeguarded CSRs who are not members of another trade union (a separate agreement applies) at the time of agreement, an additional lump sum will be paid in lieu of the 2015, 2016 and 2017 pay increase on the following basis:

▪2015 - £600 per CSR and CSA

▪2016 - £600 per CSR and CSA

▪2017 - £600 per CSR and CSR

▪Alternatively the company is prepared to consider a single payment to be paid on the implementation of Driver Dispatch at the three Airport Stations, this would be a single payment of £1,200. This will replace the three individual payments as an option.

d.Heathrow Express will commit to reviewing the CSR (safeguarded) salary for January 2019 onwards. There can be no implied right of a negotiated increases for this group and will entirely depend on the economic position of the business at that time.

e.CSR (safeguarded) employees will be paid overtime at their current rate of pay at the time of agreement.

f.The company commits to working with the representatives on a reward scheme for CSR/Customer Hosts that will be introduced in parallel with driver dispatch. This could take the form of commission for additional upselling etc. this will be discussed with the reps before the implementation of Driver Dispatch once details are finalised.

In addition, the company will commit to continue the discretionary practice of Shift Swaps subject to a mutual understanding with the RMT representatives on a process for ensuring it is applied fairly. This agreement shall put in place no later than 14 days after the acceptance by RMT members of these proposals.

Accepted on behalf of:

Keith HardingBrendan Kelly

Operations DirectorRegional Organiser

Heathrow Express RMT

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