Scottish Water gets green light for pay reforms

Utility group Scottish Water has narrowly avoided industrial unrest after its 4,363-strong workforce voted to accept pay harmonisation across the company.

The company confirmed that it passed the controversial measures by just seven votes, with 1,690 staff voting for the reforms compared to 1,683 employees who were opposed.

The salary structure at Scottish Water will now be re-graded into six bands with other conditions such as overtime payments and holiday entitlements also being harmonised.

HR director Paul Pagliari said the ballot result demonstrated how changes could be made through a working partnership. He said the new pay structure was agreed by a 24-member company council, including shop stewards and union officials, before going to a full staff ballot.

"I am absolutely delighted for Scottish Water and all of its employees," he said.

The victory comes after some insiders claimed the changes would breach TUPE staff transfer regulations, and would dent staff pensions and National Insurance contributions.

The move is the latest in a series of changes at the company since its formation through the merger of three separate regional councils. Scottish Water was ordered by the Scottish Parliament to cut £1.45m from its operating expenditure before 2006.

Early retirement and voluntary redundancy schemes, which include helping employees to find other jobs in Scotland, have so far reduced the workforce by more than 1,200.