Unite in AXA reps attending the AXA European Works Council in Paris today, took the opportunity to raise the issue of the cost of living crisis and pay with AXA Group CEO Thomas Buberl.

This is what we said:

The cost of living crisis crisis is a trans-European issue. In many countries people are struggling with energy bills, the cost of food, increasing fuel prices, rising interest rates etc. The impact, of course, varies from country to country depending on the level of Government support and other factors, but regardless it is a major issue of an unprecedented scale faced by many AXA workers across the continent many who are now being forced to make extremely difficult choices this winter.

Like many financial institutions AXA reported a strong performance in the first half of 2022 with an increase in profits of 11% to €3.9 billion, following on from what you called an “excellent performance” the previous year with underlying earnings up 61% to €6.8 billion. 

Whilst we appreciate you need to maintain strict controls on issues such as Solvency 2, the immediate negative impact of the cost of living crisis on many employees is such that it is not unreasonable for employee representatives such as ourselves to ask what actions AXA are taking to help its vulnerable workers across Europe and also ask that it give some more consideration to the problems the employees are facing, rather than the size of the dividend given to shareholders in 2023 or billion Euro share buy-backs.

When confronted with the reality that some employees of this company are faced with decisions about either switching on the heating or eating, and when others will be soon seeing increases in their mortgage payments that could well see them lose their homes, can it be right for a company as rich and as strong as AXA to enforce a real term pay cut on its employees by insisting its entities implement below inflation pay rises on the very workers who generate the “excellent performance” and generate the company’s multi-billion Euro profits through their hard work.

Please do not think the good will of the employees will last if you make them worse off in real terms at such a desperate time. There is a very big risk of them becoming disengaged negatively impacting company performance. There is a very big risk to their metal health which will negatively impact company performance. There is a major risk of skilled employees leaving negatively company performance 

AXA is a good employer, it has a good reputation, please ensure that remains the case in 2023 by not penalising your employees by effectively cutting their pay with below inflation increases and negatively impacting their well being as well, just so the company can make a few million more Euros and pay the shareholders a few cents more.

Thomas Buberl responded: The cost of living crisis clearly concerns all of us. It is very frightening. AXA is a responsible employer and has taken action with financial support for less well off in France and UK, and will continue to look at this. AXA will address issue of inflation in current salary negotiations looking to balance short and medium term issues and we have no doubt will find a good solution through social dialogue.

With over 1500 employees having signed our Working From Home allowance petition, we are very pleased that AXA UK have listened and will be putting a place a £26 a month tax and national insurance free allowance for all hybrid workers (except those in very senior positions) over the winter period backdated to the beginning of October.

Unite in AXA are pleased that AXA has agreed to take this action following our discussions given the pressures hybrid workers are facing on heating and electricity costs this winter.

This does not of course bring an end our discussions with the company on the Cost of Living Crisis and we are still working with them on a number of our suggestions to help staff at this extremely difficult time. Hopefully there will be more good news regarding help for struggling employees in the coming weeks…

The success here does demonstrate the importance of having your voice heard and there are more issues coming up, including the 2023 pay talks, which we will need the opinions of our members in AXA on soon.

If you do not feel you need the allowance and would like to donate it to charity you might consider giving it to the likes of National Energy Action, The Trussell Trust or Fareshare who are helping people struggling with the Cost of Living crisis…

Unite in AXA have issued a newsletter as we start the 2023 pay roundly consulting with our members. Please leave your feedback below or talk to your local union rep.

Unite the Union have increased the ‘low pay’ subscription threshold from £18,000 gross per annum to £21,500 with immediate effect.

If you pre-tax annual take home is £21,500 or less (even if you work less than 35 hours a week) you qualify to pay the lower subscription rate for Unite membership.

If you now qualify for the lower subscription rate please contact your local Unite the Union office membership department and they will talk you through the process of reducing your subs.

After representations by Unite in AXA, and other employee representative groups in AXA UK, the company have advised that they “won’t be expanding the scope of the one-off £1k cost of living payment”.

They said that they “recognise that all employees are making difficult decisions about how to save money and juggle their finances, and understand the approach taken own’t solve everyone’s household budget challenges” and that in their opinion “no solution… will be perfect”.  They “feel the package launched was the most sensible balance between the needs of employees, who are more likely to vulnerable vs. protecting the commercial health of the business”.

We are disappointed with this response, given the divisive binary nature of the threshold that upset many members, especially those unfortunate to fall just above the line, as well as the where this line was drawn. We will however continue to campaign for further and ongoing cost of living provision from the company, and do not regard this payment as all we are expecting to see AXA do to support its staff during this increasingly difficult time.