AXA Union News

Recommended Pay Settlement 2008 (Joint Unite-AXA statement)

After a period of extended talks and against a background of economic uncertainty and a difficult business climate we are pleased to announce we have reached an agreement on the following pay proposal for employees in Levels 9 - 3:

The overall deal is worth 3.61% with the spend on pay awards of 3.5% of the pay bill.

In addition we have agreed to a further 0.5% increase to all employees included in the April pay review provided the following criteria are met

a) An increase in the average of the Retail Price Index (RPI) indices from January to June 08 (inclusive) to 4% or over

And

b) achieving the target for AXA UK Underlying Post Tax Earnings (UPTE) for Half Year 2008 (figure to be finalised when group targets are finalised in March 2008).

This award will be payable 1 September 2008 (not backdated), normal rules will apply where an employee's Full Time Equivalent (FTE) salary exceeds the maximum of the pay range and payment will be consolidated into pay.

The AXA PPP healthcare pay review takes place in July 2008 and their settlement will be discussed with VOX at that time.

Where employees achieve a Below Expected/Partially Successful (4) bonus for 2008 (payable 2009) a bonus opportunity of typically between 0% - 50% of the on target Good/Successful opportunity will be made available. This arrangement will apply to all employees in AXA Life, Insurance, PPP healthcare, UK and Shared Services.

The Unite NCC will recommend this pay review to their members for acceptance in the forthcoming pay ballot 18 February - 29 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:

Pay Review Details

• A total spend of 3.5% of the salary bill

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

• As previously agreed for Levels 9 - 6 where an employee's Full Time Equivalent (FTE) salary is over the maximum of the pay range a pay award will be payable based on the High in Range middle percentage using the maximum salary for that pay range.

• Those employees in Level 5 to 3 where an employee's Full Time Equivalent (FTE) salary is over the maximum of a pay range will receive a pay award as described for Level 9 - 6 (this approach will not necessarily be adopted for future pay reviews).

• No pay award will be available for Below Expected/Partially Successful (4) performance until performance is back on track.

• Pay Ranges will be 80% - 120% of market median (for AXA Insurance the lower end of the range starts at 78.5% increased from 76.5% last year, separate arrangements have been put in place to move employees to 80% by 2009).

• Pay Ranges will be available via AXAnet.

Future Commitment

AXA have committed with Unite and VOX to review the following:

• Healthcare Provision for Employees (Q3 2008): the extent and availability of healthcare provision for the AXA UK Group.

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

• Review of On-Target bonus (for bonus year 2009 - payable 2010): In particular payments for Levels 6 in AXA Insurance.

15th February 2008

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