AXA Union News

Recommended Pay Settlement 2007 (Joint Amicus-AXA statement)

We are pleased to announce that AXA UK and the Amicus National Company Committee (NCC) have reached an agreement for the 2007 pay review in AXA Life, Insurance, UK and Shared Services.

The deal is worth a total of 4.7% of the pay bill (around £9.7m), and is divided between pay increases (4%) and changes to harmonise employment benefits (0.7%). It demonstrates the real commitment AXA are making to all their employees as part of AXA's Employee Engagement agenda within the 2012 Ambition programme.

Although Amicus represent Levels 9 - 6 for collective bargaining, we are pleased to confirm that the pay settlement will apply to all Levels 9 - 3.

The Amicus NCC will recommend this pay review to their members for acceptance in the forthcoming pay ballot (5 February - 16 February). Further details of the settlement will be issued once the ballot results are known. However, the key aspects of the review are as follows:

Full briefing notes will be issued during the course of this week. However, the key aspects of the review are as follows:

Pay Review Details

• A total spend of 4% of the salary bill

• A managers guidance matrix for recommending pay awards (see below)

• For Levels 9 - 6 where an employee's Full Time Equivalent (FTE) salary is over the maximum of the pay range a lump sum payment will be paid in lieu of a pay increase. This lump sum will be based on the High in Range percentage from the above pay matrix using pay range maximum not actual salary. No lump sum payments will be made to L5 - 3 in this situation. Every third year the lump sum payment that would otherwise be payable will be consolidated into base pay and will therefore be pensionable. This approach will be used for the 2008 pay review. This lump sum arrangement will also be adopted for future settlements.

• Consolidation of Geographical Allowance into base pay for AXA Life. Employees receiving this allowance will be managed to a Market 1 pay range for the April 2007 pay review. Consolidation of the allowance will happen after the pay review has been processed and where appropriate employees will move to Market 2 if based in Central London for future pay reviews. The consolidated allowance will become pensionable and bonusable.

• Market 2 (Central London) pay ranges will, for Financial Services, Finance and IT, be 20% more than the National pay ranges.

• Pay Ranges will be 80% - 120% of market median (for AXA Insurance the lower end of the range starts at 76.5%, separate arrangements have been put in place to move employees to 80% by 2009).

Harmonisation Details

Worth 0.7% of the pay bill and effective 1 June 2007, the following policies will be harmonised (key details are given). Full details of these policies will be communicated separately.

• Holiday : Maximum entitlement of 28 days after 5 years service (to be backdated to 1/1/07). Entitlements for 5 years or less will be based on AXA UK & Shared Services. Any higher existing entitlement will be honoured.

• Redundancy : Historic terms banked and an agreed common methodology adopted for future service (which will be 2 weeks for each year of service for the first 10 years and 3 weeks for every year after 10 years plus statutory).

• Sick Terms: Common approach across all Operating Companies (based on AXA Insurance, UK and Shared Services entitlements).

• Maternity: Extend the period of weeks employees are paid in full to 15 weeks and remove the maternity returner bonus.

• Shared Services Bonus Scheme for 2007 (payable March 2008): One bonus scheme to replace the 5 existing schemes.

Future Commitment

AXA have committed with Amicus to review the following:

• Healthcare Provision for Employees (Q3 2007): the extent and availability of healthcare provision for the AXA UK Group

• Bonus Scheme: Operating Company bonus schemes will be reviewed as part of the SBU implementation

• Overtime (Q3 2007): Working towards a common framework

• AXA Purchasing Power (Q3 2007): opportunities for employees to benefits further from AXA's purchasing power in respect of cars, white-goods, 'trade' benefits and travel.

• AXA Products for Staff (Q3 2007): current offerings and availability

• Sports and Social (Q3 2007): current arrangements and availability

2nd February 2007

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