BW director pay rise shock

THE ANNOUNCEMENT of a pay rise for British Waterways directors will come as something as a shock to the public and  employees alike, writes Allan Richards.

Huw Irranca-Davis, the Waterways Minister, made the announcement in a written statement.

Modest rise

A pay rise, backdated to the 1st July 2009, has been given to all ten board directors. An ex director, Richard Bowker, has also been made part of the award. The announcement does not say in percentage terms how much the pay rise is but comparison with lasts year's annual report suggests it is modest and is under 2%.

Board directors are part time and work up to 42 days per year (chairman 76). However, whilst annual reports give details of attendance at board and committee meetings they give no indication of how much time board directors actually devote to duties. The base salary (or fee) for board directors is now £13,225 with the vice chair £17,442 and chair £51,359. However, all directors with the exception of the chairman are eligible for allowances ranging from £1,000 to £4,500 for being members of various board sub committees.

The board salary bill for 2009/10 is expected to be in the region of £200,000, a drop in the ocean compared with BW's nine executive directors who landed the taxpayer with a massive salary bill of almost £2 millions last year.

Out of order

Although the pay rise is modest, it is completely out of order. Is the minister not aware that the board have approved a pay freeze for employees? Is he not aware that BW have 19 directors, and whilst he was re-appointing some of them to a second terms of office they were making employees redundant?

Does the minister not know that that the board has approved plans whereby they are expecting members of the public to work for British Waterways for no payment?

Board must act

BW's Chairman, Tony Hales, is letting it be known in some quarters that he is foregoing his salary and has asked that the money be given to a waterways charity. The way forward for the other board members is clear. They should do likewise. However, what better charity to give the money to than the organisation that claims it wants to be one—British Waterways?