The South Tees Hospitals NHS Foundation Trust (STHFT) announced to shocked trade unions last week (17 April) its proposals to cut holiday pay enhancement by over 4%, dropping from 16% to just 12.04%. This potentially breaches important legal precedent and directly penalises nursing staff who already prop up the NHS with overtime and extra shifts.

The cut in holiday pay is a double blow for staff. The Trust has also introduced an 8.5% increase in staff car parking charges and is about to change its car parking contract to Parking Eye, which could make onsite parking for staff more difficult and result in system of prohibitive fines.

Roaqah Shaher, RCN representative and nurse at the trust said:

“Nursing staff are being financially pushed to the edge by their own employer.

“These are the same staff who worked tirelessly throughout the Covid pandemic and went onto tackle the enormous care backlog afterwards. 

"They continue to care for their patients 24 hours a day 7 days a week. Instead of recognition and thanks from the trust however, they’re being hit with pay cuts, extra charges and the threat of parking fines.

“Unsurprisingly nursing staff feel angry, let down and incredibly demoralised.”

According to the recent Flowers legal ruling, holiday pay must reflect “normal pay”—including regular overtime, weekend work and enhancements. The cut to 12.04% proposed by the trust is widely used for casual or zero-hours workers, not for core NHS staff with regular contractual patterns and responsibilities.

Sarah Hughes, Senior RCN Officer said: 

“The trust has a clear legal and moral obligation to pay their staff correctly and in accordance with the agreed rate of pay.

“Cutting holiday pay will hit frontline nursing and support staff, many of whom already struggle making ends meet whilst the cost of living continues to skyrocket. It is fundamentally wrong.”

The RCN also condemned the trust’s failure to consult properly with staff-side trade unions, accusing the employer of unilaterally imposing unfair, unsound, and controversial decisions.

Sarah Hughes added:

“This isn’t partnership working at all — this is management from behind closed doors. The trust seems entirely focused on balancing the books - rather than supporting the very staff who run the hospital for the people of Teesside.”

The RCN and the joint trades unions are calling on the trust for:-

• an immediately halt to the proposed reduction in holiday pay
• a full and transparent consultation with union representatives
• a reversal of the car parking charge hike and Parking Eye rollout
• an urgent review of the financial pressure being placed on staff, many of whom are already using food banks or taking on second jobs.

The RCN is campaigning to reverse the trust’s recent decisions on pay and parking and is calling on the public and local leaders for their support.