I work for a company who operates a service for another company in UK. I'll call them LTF. LTF give my company a fixed sum per year to operate the service with no risk to my company. My company can only get bonuses or nothing extra if KPIs aren't' met. It's pretty much a no risk operation. All costs are met by LTF, anything left over is for my company to keep as a bonus.
Every year so far, our yearly raises have been based on February RPI (Retail Price Index). Agreed with unions to be February RPI+ or 2% whichever is greater. This year though, they've gone off the rails and despite February RPI being 8.2%, they're only offering us 5%, 1% of which is just a yearly increase to offset rising energy costs, which is not in any way pensionable.
Obviously our unions and members aren't happy with this. We're now being balloted for strike action. However, it's come to light that LTF have given our company March RPI of 9% to enable RPI increases, yet my company are still sticking to 5%. It's now oblivious that my company and our parent company are using my company as a cash cow, to enable them to prop up their other companies in the same field financially.
Looking at records, last year my company gave over £6million to shareholders, yet they can't find the stomach to give us an RPI increase in line with inflation. Absolutely disgusting. I hope LTF feel the same way and don't renew their contract. Thankfully due to TUPE laws, I'm safe in a job if they do change companies, but it's just the principle.