Interpretation and application of the Framework and the Memorandum of Understanding
Pre-1992 employers have agreed that new pay arrangements adopted under the terms of the Framework Agreement will avoid detriment to the present pay progression expectations of academic and academic-related staff.
The MoU establishes key national principles:
Principle 1
Contribution thresholds in the pay scales for academic and academic-related staff are to be set no lower than the present non-discretionary maxima for equivalent grades
Principle 2
That academic and academic related staff will have a normal expectation of progression to the contribution threshold for their grade
Principle 3
That this incremental progression to the contribution threshold will take no longer than under current equivalent arrangements
Current career progression is protected
•	To construct the AUT model you must begin with the agreement that current career progression expectations will be protected.
•	The current career expectations (ie the point to which staff can normally expect to progress without requiring promotion) which must be protected are:
o	Researchers, point 13 RA1A
o	Academic related staff, point 13 ALC 2
o	Lecturers, point 18 Lecturer B
The understanding of these current progression arrangements is critical to the construction of any new grading model.
The employers' original proposals failed to protect career progression
Under the original employers' proposals point 18 was protected as the top point of new grade Academic 3. However the proposed top point of grade 7/academic 2 did not protect the salary level at the top of RA1A and ALC 2.
Point 36 is the key to the AUT model
Therefore any new grading structure must move the top point of grade 7/academic 2 to point 36 on the new pay spine. This also complies with principle 1, the protection of current non discretionary maxima.
Current incremental progression must be matched
•	Progression from the bottom point of Academic 1/grade 6 to the top point of academic 2/grade 7 (which will remain a through grade as currently) must take no more than 10 incremental steps in order to match current incremental progression of researchers and academic-related staff and therefore to comply with principle 3. Therefore the preferred new grading structure starts at point 27 for grade 6/academic 1.
•	Academic 2/grade 7 has 4 increments to meet current Lecturer A incremental progression.
•	Academic 3/grade 8 has 7 increments to meet current Lecturer B incremental progression. For ALC 3 staff incremental progression on this grade must take no more than 5 years to meet current incremental progression arrangements.
•	Academic 4/grade 9 has 5 increments to meet current Senior Lecturer and ALC 5.
•	Since this grading structure reduces the number of academic-related grades from six to five, current ALC 4 staff will either assimilate to grade 8 or grade 9 depending on the results of role analysis. The removal of grade 4 meets a long-standing policy position of AUT.
•	Other related staff will either assimilate to one of the academic grades if their function is principally academic (eg teaching fellows) or to grades 6-10 if their function is academic-related. Assimilation will be as set out above.
•	Progression arrangements for staff on RA1B and Other related 1 are slightly different. There is currently a bar at point 6 at the top of these grades. Therefore these staff will assimilate to academic 1/grade 6, with automatic progression to the top of this grade. They will not have automatic expectation of progression to academic 2/grade 7.
Contribution points
Local agreement must be reached about the number of contribution points. Under the AUT model we propose an additional contribution point at the top of academic 3 to protect the salary level of staff on the top discretionary point of Lecturer B.
Academic 4 only has two contribution points – 50 and 51 – where senior lecturer currently has 3 points. Local negotiators should seek agreement on the most beneficial assimilation arrangements for staff currently on the senior lecturer discretionary points.

Assimilation to the new grading structure
Salary at 1 August 2004 on current pay points following award of 3.44% from 1 August 2003 and 3% from 1 August 2004.
Assimilation to the appropriate point on the new grading structure on the basis of protecting both salary and current incremental progression. Assimilation is determined by counting back from the non discretionary maxima on current grade.
March 2004