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To: All Branches
3rd February 2012 TO: ALL BRANCHES WITH POSTAL MEMBERS
Dear Colleague
PENSIONS UPDATE
Further to LTB 1078/11 issued on the 20th December, the Union has continued regular dialogue with the government and the Royal Mail Group covering the full range of pension issues. The purpose of this LTB is to update Postal Branches on some of the key activities that are taking place. CWU Policy
In our discussions the Union has set out to both government and Royal Mail our policy positions and in particular the assurances we require before the pensions solution is implemented. We have also had separate discussions with Royal Mail over our concerns on the new Defined Contributions Scheme, which applies for new entrants who joined after April 2008.
Secondary Legislation
In the last week, the Union has been provided with the Statutory Instruments of Secondary Legislation, due to go before Parliament, which subject to state aid clearance will implement the pensions solution. The Secondary Legislation is very detailed and incorporates the mechanics and rules of how the new government scheme will operate, how the split of assets and liabilities will be undertaken and the various safeguards required to protect members’ pension benefits. The legislative documents are currently with our lawyers and independent pension actuaries. Further dialogue will take place as appropriate.
Ongoing Work Streams
In our meetings the Union is regularly updated on the various work streams that are taking place in the background to support the pension changes that are due to take place on the 1st April 2012, subject to state aid clearance.
As part of this a team from CWU Headquarters has visited the Pensions Administration Centre in Chesterfield, to observe the work required to facilitate the distribution of members’ future pensions information.
Governance
The make up of the governance group for the new government scheme has been agreed and the CWU will have two nominees on this group. Given that this scheme is unfunded (i.e. no investment decisions required) this governance group will not have the same level of responsibilities as a normal trustee board. An independent Chair, Alan Pickering, has been appointed to lead the governance group.
Communications
The Pension Trustee Board has shared with us the communications they are planning in the coming weeks to explain what the government’s pension solution means to members of the scheme. We are also participating in a wider Stakeholder Forum that is discussing the need for accurate and timely information.
Separate from the above a CWU pensions pamphlet is being produced and this will set out a broader position covering the full range of pension issues.
Next Steps
You will see from the aforementioned that there is a lot of activity taking place on both the detail of the pension solution and the broader issues involved.
It appears there is now a high degree of confidence that the decision on state aid will be finalised in time for the pension solution to be implemented in April 2012.
In the meantime, our meetings and the activities outlined in this LTB will intensify over the next few weeks.
A further report will be issued in due course.
Yours sincerely
Dave Ward Deputy General Secretary (P)
Dear Colleagues
Labour’s links with the Trade Unions
The attached document – “Labour’s Link with the Trade Unions” - will be of interest to branches.
Any enquiries on this LTB should be addressed to the General Secretary’s Office quoting the reference GS.14.0
Yours sincerely
W HAYES General Secretary
TO: ALL BRANCHES WITH POSTAL MEMBERS
Dear Colleague
Angard AND Agency Staff Recruitment
Further to LTB 1063/11 forwarded to Branches on the 15th December 2011.
Please find attached a PDF Leaflet to assist Branches in the recruitment of Angard and other Agency Workers in Royal Mail. The Leaflet can be found on the JOIN US Section of the CWU National Website under Angard. To download the Leaflet for printing please go to: http://www.cwu.org/join-cwu-postal.html
Any Branch who requires any assistance in this matter should contact Lynn Browne on 07753 776 364 or email lbrowne@cwu.org.
Yours sincerely
Dave Ward Deputy General Secretary (P)
CWU supports Cervical Cancer Prevention week23rd January 2012 CWU members are marking Cervical Cancer Prevention Week (22-28 January) by raising awareness of the condition and urging women everywhere to make full use of the screening and treatments available.
Between the ages of 25 and 49, women are advised to have a screening every three years, and every five years after 50. "Cervical cancer is one of the more preventable cancers, and preventative measures are widely available, but, sadly, too many UK women are either unaware or unwilling to participate," Dave continued, adding: "In 2010, for example, one-in-five - 20 per cent - did not take up their invitation for cervical screening, while only 50 per cent of girls offered the HPV vaccine in the catch-up programme have elected to have this potentially life-saving jab.
Cervical Cancer Prevention Week activities that CWU members will be supporting include distributing posters, leaflets and postcards in workplaces, displaying posters in prominent places - including in the ladies loos! - organising awareness raising events, and/or highlighting the issue in branch newsletters and other communications. If you want to get involved in this week's activities - which are aimed at helping save women's lives - you can download campaign materials by visiting Jo's Cervical Cancer Trust. Or ring the Jo's Trust office on 020 7936 7498 to find out about events and activities near you. If you are concerned about the condition, or if you have any further questions, you can contact Jo's fully confidential Cervical Cancer Trust - 'Ask The Expert'.
To All Postal Branches To All Divisional Representatives To All Area Processing Representatives
Dear Colleague
Mail Centre Budgetary Savings
The department received feedback at a recent Divisional Representatives’ meeting that that Mail Centre managers had been charged with achieving a generic and arbitrary 7% budget saving in all Mail Centres. Representation has been made to the business and the department has received a response from Steve Cameron, Operations, and Process & Programme Director.
Mr Cameron has categorically stated, and I quote:
‘There is no standard arbitrary 7% savings target for all Mail Centres’
This information should be used by all Area Processing representatives to challenge back on any local proposals presented under such a banner. All local negotiations should be conducted consistent with the BT Agreement and all other relevant National agreements.
In regard to the BT Agreement, management may well quote the generic section on productivity and bring everyone’s performance up to the top 10%. However, it should be noted that talks on this measurement system are still taking place at National level and have not yet been concluded.
There has not been any new revisions agreement for Mail Centres since RRP, although the PBS agreement did include a 12 step revision process. As far as the department is concerned in the absence of any new revisions process these agreements are still relevant and should be used in conjunction with the IR Framework to ensure a professional response to any managerial performance proposal.
To ensure consistency in our position the above is also supported by the LTB 219/2011 issued by the previous ‘Indoor Department’ at CWU HQ on the 8th March 2011. It is our opinion that any proposals, be they based on BSI, upper decile or top 10%, are all one and the same and should be responded to accordingly.
Any enquiries in relation to this LTB should be addressed to Terry Pullinger, Assistant Secretary, email dwyatt@cwu.org, quoting reference 711.03.
Yours sincerely
Terry Pullinger Assistant Secretary
TO: ALL BRANCHES WITH POSTAL MEMBERS
Dear Colleague
BUSINESS TRANSFORMATION – UPDATE ON NATIONAL TALKS
The purpose of this LTB is to update Branches on developments since the publication of LTB 1080/11.
BACKGROUND
In December the Postal Executive took a decision, which was communicated to all Branches, to give Royal Mail a deadline of week commencing 16th January to address the Union’s growing concerns, predominantly in delivery, that were seen to be undermining the successful deployment of the Business Transformation Agreement. The Deputy General Secretary was asked to write to the Chief Executive of the company explaining what the problems were and stating that if we could not make sufficient progress by week commencing the 16th January, then we would be advising our members to suspend all involvement in revision activity.
This decision followed an earlier report to the Postal Executive and subsequent LTB from the Outdoor Secretary Bob Gibson, which responded to Royal Mail’s unilateral actions in the field and placed an embargo on the Royal Mail indoor workflow process.
In line with the overall policy, the Deputy General Secretary wrote to the Chief Executive and the relevant national officers also held meetings with Royal Mail. The Postal Executive agreed to meet on the 18th January to review progress and take appropriate decisions.
ISSUES CONSIDERED BY THE POSTAL EXECUTIVE AT ITS MEETING ON THE 18TH JANUARY Accordingly, our meeting took place on the 18th January 2012 and to ensure the Postal Executive had an informed debate full consideration was given to the following:-
Having taken full account of all the above mentioned the Postal Executive agreed the following policy:-
SUMMARY
The Union continues to recognise the need to deploy the Business Transformation Agreement in all locations and we remain fully committed to the terms of the National Agreement. However, it is crucial that what actually takes place in local revision activity reflects the agreement and in particular that our members receive the full benefits that are due. A further letter has been sent to the Chief Executive explaining the outcome of the meeting. A further report will be issued in due course.
In the meantime, any enquiries on the general issues contained in this LTB should be directed to the DGS (P), specific enquiries on functional issues should be directed to the relevant officers.
Yours sincerely
Dave Ward Bob Gibson Deputy General Secretary (P) Assistant Secretary
Terry Pullinger Ray Ellis Andy Furey Assistant Secretary Assistant Secretary Assistant Secretary
TO: ALL BRANCHES WITH POSTAL MEMBERS
Dear Colleague
Royal Mail Work Experience Programme
Branches are informed that the union has been in discussion with Royal Mail over a proposal for the business to participate in a government initiative to provide work experience to unemployed 16 – 24 year olds. The initiative coordinated by Job Centre Plus is designed to provide participants with an introduction to the world of work and enhance their prospects of finding employment in the future. Following extensive discussion and clarification the union is happy to support the initiative which will be deployed from January 2012 on the following basis.
To ensure that the programme produces the optimum outcome for the participants with the minimum impact on normal operational arrangement, the following criteria have been agreed.
Following this initial deployment the programme will be the subject of a joint review between the Royal Mail and the CWU at national level prior to any further ongoing or expanded commitment.
To support the deployment the following Joint Statement has been agreed.
“Royal Mail has committed to participate in a new government initiative to offer young people the opportunity to gain valuable work experience within a business, which will have a positive impact upon their confidence, their employability and their future prospects. Following full consultation on the detail of the initiative the CWU are pleased to support the Royal Mail Work Experience Programme and would encourage our representatives and members to ensure that the Work Experience participants placement with Royal Mail is a positive experience that will reconnect them to the world of work.”
Any enquiries on the above LTB should be addressed to the DGS (P) Department quoting reference NC/24005.
Yours sincerely
Dave Ward Deputy General Secretary (P)
Mail Centre Rationalisation : Rumours are abound that the Process element of work is to close earlier than expected, I can assure everyone that to date this is not the intention and the original proposed date of 2015 is still RM target date. That's not to say that they will be looking to scope / have feasibility studies over the coming months at further options. There has not been any project board meetings since last November 2011 due to Christmas pressure! However, a latest C&N update notice has been circulated stating that they are looking at a possible option of moving MGV work to Sheffield MC. If this is indeed the case then it would be appropriate to include MGV drivers to open a Clear Choice Centre to deal with the personal issues / choices!!!
POSTAL SECTOR
ANNUAL REPORT 2011/12
POSTAL ANNUAL REPORT 2011/12 CONTENTS
Contents
Introduction by – Dave Ward DGS (P) - 2 Introduction by - Jane Loftus - Chair - 3
SECTION 1 – Postal Industry General Matters - 4
SECTION 2 – Postal Industry Pay and Related Matters - 9
SECTION 3 - Sectional Issues
SECTION 4 – Postal Industry Organising (including Training, Equality Issues and Postal Regulation) - 23
SECTION 5 – Officers and Advisors - 24
INTRODUCTION
INTRODUCTION
Dear Colleague
Welcome to the Annual Report. The content has been compiled by the relevant CWU National Officers and covers the work undertaken by the Postal Executive in 2011.
Although the report is a record of the subjects we have been dealing with - in itself - it does not begin to tell the story of the scale of change taking place within the Postal Industry.
Our members now work within a much harsher business environment, and the combined challenges of competition, pensions deficit, modernisation, the digital revolution, privatisation and separation of Post Office Limited, are unprecedented.
To address these issues, the terms of Emergency Motion 3, agreed at Annual Conference, set out a very clear direction for the Union. Increasingly, this will mean dealing with the impact of the Postal Services Act and developing new strategies that protect our members and maintain the role of the Union in all eventualities.
Undertaking Business Transformation was never going to be easy, but CWU members do now recognise that change is necessary to sustain long term jobs and the future of the company. The debate is no longer about whether we change – but how we change. Unfortunately, the task has been made even harder by some actions of the company, prevailing economic conditions and the destabilising political background.
We all know that 2012 will be a crucial year and the Union remains committed to deploying the agreements we have reached. We continue to recognise the wider business context – but, where necessary, we will also hold the company to account.
There remains a lot of work to do to truly align the interests of our members, customers and the company. In 2012, we will also need to take further steps to implement positive reform of the Union.
Dave Ward Deputy General Secretary (P) INTRODUCTION
INTRODUCTION
Dear Comrades
All of us will have been affected by the Tory led coalition cuts and attacks on services. The levels of attacks are unprecedented and will continue for the foreseeable future. Trade Unions, communities and social movements have united together to fight job losses, pension attacks, wage cuts and general attacks on ordinary workers living standards. The Government, led by millionaires, want us to pay for the banking crisis that they created and have benefited from. The CWU has rightly stood shoulder to shoulder with workers taking action, no matter how small or large the dispute. Capita workers are a good example and show how a small workforce can impact on a multinational by defending their working conditions. Many CWU workplaces have balloted and won decisive YES votes, which have ensured a resolution to disputes that different sections have been involved in.
The Postal Executive have been working with Branches to put in place our organising strategy, “Meeting the Challenge”. This will assist building active workplace representation in these difficult times thus, ensuing members participate and get active in campaigns and involved in the workplace supporting their representatives. There will be problems ahead and the CWU will not be immune from Government and Employers attacks. A strong united and fighting Union will ensure victories for the future.
The first Policy Forum was held in November and set a model for democratic decisions to be made as, and when, required. The Postal Industry Report and Conference now includes opportunities to set policy on all issues affecting the Postal Sector from Organising to Regulation, as well as work place issues. This is a welcome move and will inform how we work at National, Regional, Divisional and Local level that best represents the members.
Together, organised, united and defending workers, we can stop the Government and Employers making us pay for their greed, while the rich get richer and the poor get poorer.
Jane Loftus Chair, Postal Executive
POSTAL INDUSTRY GENERAL MATTERS
SECTION 1
EU State Aid
At the time of writing this Report, the process for securing State Aid is well underway and regular meetings are taking place between the European Commission, the Government and the Royal Mail Group. These meetings are testing the State Aid case put forward by the Government against the viability of the company’s restructuring plan and the rules laid down in Europe for clearing such cases. Having made a strong submission to the European Commission, the Union continues to press for clearance of State Aid without any onerous conditions that would impact adversely on our members or the company.
We pursue CWU policy in regular dialogue with the Minister, the Shareholder Executive, Senior Management, and directly with the European Commission.
We anticipate that a final decision on State Aid will be around April 2012.
Pensions
A comprehensive Pensions Policy Document was submitted to our first ever Policy Forum. The outcome was that we adopted Pensions Policy in a number of areas and this continues to be addressed with the company and the Government both separately and in tripartite Meetings.
Regulation
Over the course of the year we have begun to see a shift in the balance of forces on regulation away from the competitors and towards a more level playing field and Royal Mail as the USO provider. This has been achieved through the work we have jointly undertaken with the company and our lobbying during the passage of the Bill through to the royal assent of the Postal Services Act 2011. Further evidence of this can be seen in Ofcom’s first Consultation Paper. At the time of writing this Report, responding to the Ofcom Consultation, which concludes in early January 2012, is now an immediate priority.
Privatisation/Employee Ownership
In line with CWU policy, we continue to oppose privatisation, whilst recognising that the Union must deal with the industrial impact of the Postal Services Act.
In meetings with the Minister, the Union has made it clear that we expect to be fully involved in the shape and type of sale, should it proceed, alongside the construction of any Employee Ownership Scheme. At meetings with the Minister it has been confirmed that there was no real prospect of a sale taking place in 2012.
POL Separation
The Union has held a number of meetings with the company on all the issues associated with the separation of Post Office Ltd. This includes formal consultation over the transfer of employees to Post Office Ltd as a separate company. At the time of writing this Report the company had indicated that they expected separation to go ahead around April 2012
PO Mutualisation
While Post Office Ltd cannot be privatised, the Postal Services Act gives the government the power to transfer its share in POL to a mutual, subject to approval from both Houses of Parliament. The government initially commissioned Co-operatives UK to conduct a study into the options for mutualisation of the Post Office, who engaged with the Union as one of a number of stakeholders. This was published in May, making recommendations on the form a mutual Post Office should take.
Over the summer we met with the Shareholder Executive and civil servants from BIS to engage with them on this and the government’s consultation on mutualisation, which was published in September. While the government was clear it supported mutualisation, we successfully argued that the consultation should not treat this as a foregone conclusion and had to include a question on whether this was a
POSTAL INDUSTRY GENERAL MATTERS
more appropriate model than state ownership. The deadline for the consultation was in December and we made a detailed submission to this raising our concerns on mutualisation and arguing that any change in the model would need to protect and enhance the voice of employees and the Union. We continue to engage with BIS on this as part of our meetings on the future of Royal Mail following the Postal Services Act.
Royal Mail Group Financial Results
Royal Mail released their financial results in March 2011 and are summarised as follows:
The half yearly results were communicated to Branches via LTB 543/11.
ColleagueShare
Royal Mail released their interim valuation, which included a report that the value of the ColleagueShare payment would be zero. Resulting from this announcement a series of meetings were held at which the business provided a comprehensive breakdown of the information used to value ColleagueShare.
Resulting from these meetings the CWU told Royal Mail that their explanation was unacceptable and, that due to actions taken by the company by introducing a new business plan, they had worsened the terms and conditions of CWU members. The Union called upon the company to either maintain the value of the ColleagueShare payment or renegotiate an alternative benefits structure for CWU members.
The endorsement of Emergency Motion 3 at the Postal Constituency Conference sets out a clear policy on the issue of ColleagueShare, which is being pursued in the current national negotiations.
Independent Assessment of Royal Mail’s Restructuring Plan/Finances
In line with the National Joint Statement, the Union has engaged an independent company to assess the overall viability of Royal Mail’s Restructuring Plan and the state of the company’s finances. The independent company has been given access by Royal Mail to all the information required to enable the independent analysis to be concluded. At the time of writing this Report, we anticipated this piece of work will be finalised in January and reported to Postal Branches, while respecting areas of commercial confidentiality.
Angard
In September, LTB 804/11 was circulated to Branches and it provided an update on Angard Staffing Solutions. Angard Staffing Solutions Limited is a new company set up in partnership with Reed Specialist Recruitment Limited to provide agency resource to Royal Mail. Angard is a company wholly owned by the Royal Mail Group.
The Union met with Royal Mail in September. At this meeting we raised a number of issues, e.g. Trade Union recognition in Angard, operational staffing arrangements, local industrial relations, etc. The Recruitment and Workplace Organisation Group are currently considering what further actions/recommendations need to be introduced to promote recruitment of Angard staff into the CWU.
At the time of writing this Report, further meetings are being arranged with Royal Mail to progress this subject.
CWU/RMG Joint Statement National Talks
The endorsement of Emergency Motion 3 at the Postal Constituency Conference led to the Union holding a series of meetings with Royal Mail. These meetings focused on the POSTAL GROUP INDUSRY GENERAL MATTERS
internal and external issues affecting the future of the company and the workforce, including the prospect of privatisation, the separation of Post Office Limited, Business Transformation, the new Business Plan and ColleagueShare.
Eventually the following Joint Statement was agreed between the Union and Royal Mail:
“ROYAL MAIL/CWU JOINT STATEMENT – NATIONAL TALKS
Our respective senior teams, led by Moya Greene and Dave Ward, held a review day on 19 July to look at the impact of recent internal and external developments affecting the future of the company. It was a constructive meeting which identified the key challenges facing the company and its employees and agreed the importance of working together to address these challenges and the concerns of the workforce. We agreed on a programme of national talks which will be wide ranging and structured around three key areas.
The Joint Statement was communicated to postal Branches along with an individual letter to members, which positioned the Union and the policies we are pursuing in our national talks with Royal Mail.
Since the publication of the Joint Statement a number of meetings have been held with Royal Mail and progress has been reported in various LTB’s.
Parcelforce Central Billing Agreement
In line with the Parcelforce Pay Agreement 2011, the long standing issue around Central Billing for Parcelforce was resolved and an agreement reached in regard to Central
Billing. The process was communicated to Branches via LTB 641/11.
Network
In line with the RM Transformation Agreement, revision activity has been taking place across all sections of the Network business, i.e. VOCs, RDCs and Walk Bundling Centres, to secure lump sum payments and, where applicable, reductions in the working week. At the time of preparing this report a large number of sites have agreed their revisions and payments have been made in accordance with the agreement. In the remaining sites discussions are continuing with an aim to secure the benefits for 2011.
Catering Reviews
Due to the effect of the modernisation programme currently underway in Royal Mail, and the cost cutting measures being applied by the business, the provision of catering is an ongoing issue with Royal Mail.
At the time of compiling this report the advice issued to Branches in LTB 690/10 remains in place and the issue is the subject of continuing discussion with both Royal Mail and Quadrant.
Delivery Office Closures
The issue of Delivery Office closures has continued to be a thorny one between Royal Mail and the CWU, both at National and Local level. Despite agreement at the National Deployment Group for a separately negotiated agreement around the issue, progress has been frustrating to say the least. At the date of publishing, further meetings and exchanges of drafts has taken place with further meetings arranged. Peter Keenlyside is leading discussions on behalf of the department.
Local Branches have continued to challenge decisions to close offices where the move has not made sense, with some reported high profile successes. Efforts continue to reach an acceptable agreed position.
POSTAL INDUSTRY GENERAL MATTERS
New Technology/Walk Sequencing
Walk Sequencing Machine rollout is now well established and, if anything, ahead of planned timescales.
The planned introduction of Advanced Technical Tasks for CSS Machine Operators has not been concluded to date and the range of tasks has still not been agreed. Discussions continue to find a safe range of tasks that a CSS Technical Operator can perform, negating the need for Royal Mail Engineers to attend the MPU. The CWU claim for reward in respect of the Technical Operator remains unresolved. Dave Joyce, Health, Safety and Environment National Officer, is now involved in the safety aspect of the proposed trials.
Transfer Policy
Individual issues arising with regard to transfers are still dealt with by Mark Baulch, PEC member. However, the Transfer Process is now enveloped into the PSP system, which is a separate entity.
PSP
PSP continues to be rolled out across the UK. A national joint statement was issued in September 2011. Dialogue between Royal Mail HQ and CWU HQ continues on a regular basis and picks up any problems reported in the intervening period.
POL Crown Offices
The Future of the Crown Office Network: Crown Transformation Talks
Crown Transformation talks are taking place with Territorial Representatives, supporting the National Officer in four strand working. Ian Ward and Carl Maden, Postal Executive members, are also involved in the National Talks and attended a national board meeting on 8th November 2011.
As part of the 2010/12 pay agreement, a one year extension of the guarantee of 373 Crown Offices was agreed until 31st March 2012. There was also a review clause which allowed us to jointly review in September 2011. As a consequence of our representations, this has now been extended by a further six months, until 30th September 2012.
Post Bank
The Post Bank Coalition continues to meet on a regular basis to discuss strategies for promoting ways to sustain the Post Office Network. It was disappointing that the Coalition Government vetoed our proposals to bring new revenue to the Post Office via a Post Bank; in their Post Office strategy document ‘
Securing the Post Office Network in the Digital Age’.
The Government has pledged that there will be no programme of closures over the course of the current Parliament, and that the current level of subsidy will continue until 2015; however, the future of the network is far from secure. The Post Bank Coalition have decided to focus our campaign on criticising the current government’s plans, as we are concerned that Network Transformation will mean a fundamental shift in the way the business operates with a number of services being removed from Post Offices, and the onus being on the private sector to promote postal services. As a consequence, we have agreed a statement of values which can be found at: http://www.cwu.org/42032/people-s-bank.html
We held a meeting with a number of stakeholders on Tuesday 14th December to present our statement of values and to garner potential support for lobbying activity in the New Year, as well as asking them to sign up to our Post Bank Coalition. Attendees were: Citizens Advice Bureau, Consumer Focus, Rural Shops Alliance, Age UK, Association of Convenience Stores, Women’s Institute and Action on Hearing Loss. The meeting went well with an excellent roundtable discussion on issues affecting users and suppliers of the Post Office network and Postmasters. The Post Bank Coalition will meet in the New Year, to discuss how we continue dialogue with these groups and lobby Parliament with our concerns.
POSTAL GROUP GENERAL MATTERS
Postmasters
Our campaign to recruit Postmasters into the CWU began in earnest in September. We have been successful in gaining a healthy number of new recruits. Nippy Singh (Chair) and Mark Baker (Vice Chair), of the new Postmasters Branch have been helping the department understand the details and nuances of dealing with the problemsPostmasters face. Being involved in this sector has strengthened our position in our overall campaign to lobby Government to sustain the Network.
Many of our Territorial and Area Representatives recently attended roadshows held by POL for Postmasters in November. Our attendance was worthwhile, and we were able to talk to Postmasters about our campaigning activities as well as encourage them to join.
POSTAL INDUSTRY PAY AND RELATED MATTERS
SECTION 2
Joint Statement – Clarification of Basic Pay Supplements (Tagging)
Following a series of meetings with Royal Mail, the Union agreed a Joint Statement which resolved a number of outstanding pay issues linked to the Business Transformation Agreement and the methods used by the business in functionally tagging employees.
Resulting from this statement a number of CWU members who had previously been tagged to the Distribution Function will now be reallocated to the Delivery Function and receive the Delivery Pay Supplement.
The Joint Statement contained an agreed definition on what constituted a hybrid duty in relation to Collection Hubs and Delivery Units. The Joint Statement also put in place a clear procedure designed to assist Branches in their negotiations with Royal Mail when introducing hybrid duties which attract the higher basic pay supplement (Delivery).
At the time of writing this Report the issue of Professional Drivers working in Delivery Units and not receiving the Delivery Pay Supplement remains outstanding. Ongoing meetings with the business are taking place, however, the matter has been complicated by wider business policy and discussions on the overall Professional Driver Grade Agreements.
Parcelforce Pay
Following the Annual Conference 2011, the Parcelforce Pay Agreement for 2011 was overwhelmingly endorsed by members in an individual members’ ballot.
The highlights of the agreement were as follows:
Stage 1
Stage 2
At the time of compiling this report, the terms of the agreement had been met with regard to pay increases and talks were continuing with the business in relation to the release of the £400 payment.
The next pay review is for the 1st April 2012.
Quadrant Pay
Following Annual Conference 2011, the department wrote to Quadrant Catering regarding the policies that were carried which centered mainly around pay issues. A meeting was arranged for 19th September 2011 to initiate discussions for the claim in regard to Quadrant Pay 2011. Negotiations have been somewhat protracted and at the time of compiling this report negotiations were continuing in regard to the pay award for 2011/12.
IOM Pay
Following protracted and extremely difficult negotiations, due to the economic situation and Government pay freeze on the IOM, a ballot for industrial action was undertaken, which was overwhelmingly endorsed by the IOM membership. An agreement was subsequently reached between the CWU and POSTAL INDUSTRY PAY AND RELATED MATTERS
IOM Post in September 2011.
The agreement included rises in basic pay, added job security and protection of pensions and was endorsed by a mass meeting of the members.
The highlights of the agreement were:
The next pay review will be April 2012.
Royal Mail Specialist Services (Incorporating Same day)
Branches will recall that it was communicated via LTB 286/10 that Royal Mail Specialist Services (incorporating Same day) became a stand alone business unit during the Royal Mail Transformation Agreement discussions, with the commitment that the same value of the Royal Mail final reward would be honored.
In line with the RMSS Business Transformation 2010 and Beyond Agreement, it was confirmed by the business in September 2011 that the necessary targets had been achieved and the £400 lump sum would be paid. However, due to the nature of the business, a pragmatic approach was taken to the introduction of the Shorter Working Week element of the agreement, and this information was communicated to Branches and representatives via a joint statement attached to LTB 781/11. At the time of preparing this report no problems regarding the SWW arrangements have been reported to the department.
Romec Pay 2011 The 2011 pay agreement was delayed due to the Romec engineering dispute. A settlement was endorsed by Engineering and Cleaning grades in individual members’ ballots in the autumn. The result was reported in LTBs 845/2011 and 848/11. The agreement provided for a 2% increase for all grades from 1st October 2011 with full flow through to allowances and overtime, plus an additional £225 unconsolidated lump sum pro rata for less than full time employees.
Engineering Parcelforce Pay 2011
At the time of going to press, two meetings have taken place and a revised offer is awaited.
Fleet & Maintenance Services Business Transformation Agreement
As part of the Business Transformation 2010 Agreement, Fleet and Maintenance Services and CWU committed to carry out a review of all aspects of maintenance service operations, including the pay and reward package. The Postal Executive endorsed the agreement on pay and reward in August 2011 and it was subsequently accepted in an individual members’ ballot of Fleet and Maintenance Service members. The agreement introduced a permanent (non-pensionable) supplement to basic pay of £5 from 3rd October 2011, rising to £10 from 2nd April 2012, Saturday Scheduled Attendance, revised shift allowances (with reserved rights for existing employees), a Technical Coach role and payment of Business Transformation lump sums/shorter working week linked to revisions to attendance in individual service centres.
Conduct Code – New Approach for CWU Representatives Under the terms of the Business Transformation Agreement, it was agreed to review the current National Appeals Panel/Conduct Code Procedure for CWU Representatives (NAP).
The Union and Royal Mail met on a number of occasions resulting in a new procedure being agreed, the content of which was sent out to Branches in LTB 687/11.
The new Procedure will be subject to a 12 month trial period and includes two review stages at 6 and 12 months.
POSTAL INDUSTRY PAY AND RELATED MATTERS
The previous NAP Agreement included a provision for the costs associated in operating the process being shared between the CWU and Royal Mail. Over the last few years the Union has argued that the CWU should not pay towards the cost of NAPs; we also argued that the costs incurred were excessive and had risen to an unacceptable level. Following our national negotiations it was agreed that the Union would not be expected to repay these costs to the business (approximately £250,000). Additionally, it was agreed that the new procedure will be fully funded by Royal Mail.
Abolition of Default Retirement Age - MTSF
During the course of the year the Union had a series of discussions with RMG about the implications for various national agreements of the abolition of the default retirement age (DRA) from 1st October 2011. An issue has arisen in respect of people aged over 64.5 in surplus situations, who have been included in preference exercises but who have not been given redundancy quotations by the business. LTB 826/2011 informed Branches that the business had agreed that the opportunity to leave by way of voluntary redundancy will be reserved for people in this situation (provided they would otherwise be eligible) pending the outcome of future discussions. Branches will be updated once an agreement has been concluded.
Attendance Procedure
The Business Transformation Agreement committed Royal Mail and CWU to review HR procedures. Discussions have been ongoing and progress has been reported to the Postal Executive and the HR Procedures Working Group. Negotiations are expected to conclude in January 2012.
Romec HR Procedures
Discussions on a new set of HR procedures in Romec were interrupted by the engineering dispute during the summer but resumed towards the end of the year. At the time of going to press, a negotiators’ agreement had been reached and it is intended to place this before the January Postal Executive Committee.
Bullying and Harassment Procedure
In line with the review of all HR procedures agreed as part of the Business Transformation Agreement, an initial meeting will take place in December to commence discussions on the bullying and harassment procedure. Branches will be kept informed of further developments.
Royal Mail Group HR Policy Review
The Union was advised in September of a group wide HR policy review, which aims to “create a simplified HR policy landscape supported by a set of policies that are user friendly, clear, accessible and consistent.” RMG confirmed that policies, which form part of a collective agreement with the Union, will not be varied without negotiation and that the Union will be consulted on all revised policy documents. The Union welcomed the intention of providing easier access to clear statements of HR policies. At the time of writing, drafts of policies relating to adoption leave, maternity leave, paternity leave and parental leave had been supplied to the Union. The project is expected to continue into 2012 and be the subject of ongoing consultation.
Reasonable Adjustments Made (RAM) trial
The commencement of a trial of a Reasonable Adjustments Made (RAM) card at South Midlands Mail Centre was reported in LTB 901/2011. The initiative arose from a motion carried at the Equality Conference. Branches will be kept advised of the progress of the trial.
Policy Forums
The Union’s first ever Policy Forum under the new arrangements was held in Manchester dealing with the issue of pensions. A comprehensive policy document setting out the Union’s policy on a range of pension issues was circulated to Branches in advance of the Forum. The decisions of the Forum were communicated to Branches via an LTB.
POSTAL INDUSTRY PAY AND RELATED MATTERS
World Class Mail (WCM)
The Union recognised that there was an urgent need to provide more information to Branches and the membership on the subject of WCM and to explain, in more detail, the Union’s current policy on how we intended to deal with World Class Mail in the current national negotiations covered by the Joint Statement. To support this objective the Postal Department circulated to Branches and Representatives a comprehensive briefing document, which covered a number of key issues and policies relating to WCM. Additional to the briefing document, the Postal Department provided Branches with a letter to members, which also set out a detailed explanation of the Union’s current policy on World Class Mail.
At the time of writing the report, meetings had been diarised with Royal Mail on World Class Mail and we have shared with the business the Union’s policy as determined by the Postal Constituency Conference.
Motion 2 – Benenden Health Plan
Following the endorsement of Motion 2 at the Postal Constituency Conference 2011, a number of meetings have been held with representatives of the Benenden Health Plan. At the time of writing the report, a formal Business Case, supporting the objective of providing health care for all Royal Mail employees, is being prepared by Benenden Health Plan. This Business Plan will cover membership costs and service levels available and will form part of the Union’s agenda in the current national negotiations.
Motion 79 – Pensions
Following the endorsement of Motion 79 at the Postal Constituency Conference 2011, the Union immediately commenced a detailed review of the arrangements covering early payment of pensions within the Royal Mail Pension Scheme. In line with the terms of the Motion, a user friendly document is being prepared and will be circulated to Branches and made available via the Union’s website in the very near future.
POL: Crown Offices Pay
After being in a long industrial dispute with POL management for almost a year, and a 93% yes vote from our members to take industrial action, fortunately, we came to an agreement before industrial action had to be taken. This resulted in a two year pay agreement in March 2011; with a 2.25% pay increase for year 1 (2010/11), backdated to 1st April 2010, and a 1.4% pay increase for year 2 (2011/12). We also extended the Crown Office Guarantee, of 373 offices, with a review clause which allowed us to jointly review in September 2011. We also committed to get into Crown Transformation talks.
The next pay review date is 1st April 2012.
POL Admin AND Supply Chain Grades
Following protracted negotiations a three year pay agreement was concluded in November 2011; with a 3.3% pay increase for year 1 (2011/12), backdated to 1st April 2011, a 3.5% pay increase for year 2 (2012/13) and a 3.25% pay increase for year 3 (2013/14). This pay increase was a minimum, with PAs receiving £14 per week (£42 over three years) and Crew receiving £15 per week (£45 over three years).
The next pay review date is 1st April 2014.
CAPITA
The last pay review date for Capita members was 1st October 2010. After several months of negotiations, an impasse was reached in July 2011. Capita refused to improve their offer of 2.6% and 2.7% respectively for years 1 and 2. A consultative ballot provided an overwhelming 88% yes vote to reject the offer. As a result of Capita still refusing to improve their offer, an industrial action ballot took place, providing a 77% yes vote to take industrial action. Capita is still refusing to return to the bargaining table and, as a consequence, at the time of writing this report, four bouts of industrial action have taken place.
POSTAL INDUSTRY PAY AND RELATED MATTERS
HR Services and Finance Services Pay
After several months of negotiations, a two year pay agreement was concluded in April 2011; with a £500 pay increase from 1st April 2011, and a £500 pay increase from 1st April 2012. Plus, a £1000 lump sum payment made on 1st April 2011, and a further £1000 lump sum payment to be made on 31st October 2011.
The next pay review date is 1st April 2013.
Royal Mail Customer Services
An agreement was reached in September 2010, as reported in last year’s annual report.
The next pay review date is 1st April 2013.
Swiss Post Solutions
A pay agreement was reached in August 2011. The overall value of the increase will cost SPS 3.2% - members received a £600 pay increase in August salaries, backdated to 1st April 2011 – this amount represents an increase ranging between 1.9% for the four managers and four supervisors, and 3.7% for the lowest paid workers. The London living wage (minimum hourly rate of £7.85) was applied for the three employees who were currently earning under that rate –this meant they received a pay rise of 13.3%. Eight employees will also receive the ex-IWM Christmas bonus of £100.
The next pay review date is 1st April 2012.
SECTIONAL ISSUES – ROYAL MAIL LETTERS
SECTION 3A – Royal Mail Letters
York Capacity Review
Branches were informed via LTB 743/11 that an initiative to review the amount of trays contained within a York would be carried out within the Mail Centre Network on outward and inward traffic streams. The aforementioned LTB also provided the background to the activity that had been carried out and the joint statement that had been agreed with the business to deploy the change, as well as the associated safe systems of work. Following a further consultation exercise with Branches, a formal joint review meeting took place on Monday, 7th November 2011, which, in the main, concentrated on addressing some adjustments to the safe systems of work that branches had raised. From an operational perspective, no real difficulties have been reported at this time. However, a further joint review meeting will be scheduled early in the New Year, which will provide an opportunity to assess from an operational and safety perspective the new working arrangements and how they function during the Christmas traffic peak period.
Business Transformation Agreement Mail Centre Processing Lump Sums
In order to facilitate the achievement of the Mail Centre sequencing targets and the subsequent triggering of the Transformation Lump Sum Payments, a number of joint workshops were carried out during the year in order to provide representatives with a clearer understanding of the Mail Centre trigger targets and identify activity that could be carried out in areas under the direct control of the processing operation which would aid the achievement of the BT lump sum payments. Indications are that these workshops have been well received and, at the time of drafting this report, a total of 51 Mail Centres had achieved the Phase 1 payment with 15 of these also achieving this second payment. This issue is the subject of continuing action by the department who are being supported by Mahmood Ali,
Postal Executive member, who is providing field support where possible.
Mail Centre Rationalisation Framework Agreement (Motion 51)
Conference will recall that the carriage of Motion 51 at Annual Conference 2011 instructed the Postal Executive to carry out an immediate review of the National Mail Centre Rationalisation Framework Agreement. Upon assuming responsibility for the Mail Centre Network in September 2011, and against the backdrop of the national high level meeting held to move forward the CWU policies contained in Emergency Motion 3, the following activity has been undertaken in furtherance of the instruction contained in Motion 51: An analysis of the areas we are required to cover in the review has drawn down on a consultation exercise, undertaken by the then Indoor Department, LTB 576/11 refers. The resolution of the London Mail Centre Dispute, LTB 560/11 refers, and a sub-group working party, involving Branch and Divisional Representatives who have been engaged in Mail Centre Rationalisation activity. At the time of drafting this report, a CWU proposal covering the review of the current National Agreement has been submitted to Steve Cameron, National Processing Director, which is still the subject of continuing dialogue.
Area Distribution (Mail Centres)
A briefing of Divisional and Area Distribution Representatives was held on 3rd November 2011. At that meeting a presentation was given by the Logistics Director, South East Region, which provided an update on Area Distribution OD and the Professional Drivers’ Agreement as it applies to MGV drivers. A copy of the presentation was subsequently circulated to the aforementioned representatives following the meeting. In their presentation the business clearly indicated that since the inception of the Professional Drivers’ Agreement, the area covering the Area Distribution/MGV Driving Force had, in effect, been left to wither on the vine and, as such, was deemed as both non compliant with the terms of the Professional Drivers Agreement and SECTIONAL ISSUES – ROYAL MAIL LETTERS
presented a risk to the business insofar as compliance with current driving hours regulations and legal operator licence requirements. Subsequently, further high level meetings have taken place with the business that covered a number of areas, and which are ongoing at the time of drafting this report. The areas in question are Transformation Lump Sum Revision Activity, Distribution OD, Paragon Revisions – LTB 991/11 refers, Driver Coaches Area Distribution, Zero Accident Plan (ZAP).
Centralised Label Printing
Branches were advised in LTB 767/11 that the business had decided to retain the addressograph operation in-house as opposed to it being outsourced. However, they confirmed that they were looking to develop a solution that retained the ordering and internal distribution of labels etc in-house, but that consolidated the actual printing operation into two mail centre sites. The aforementioned LTB confirmed that a joint working group approach would be adopted to progress this issue and, in addition, seek comments and feedback from branch/representatives in Mail Centres and RDCs that currently carry out addressograph activity. The joint working party is made up of Joe Malone – Postal Executive, Gary Hodkinson – Divisional Representative, North East, the Area Processing Representative from Sheffield and Peterborough, the Mail Centres identified as the central label printing sites and the Area Processing Representative from Leicester, a site losing its site label printing operation. At the time of drafting this report, dialogue is continuing with the business, which is taking into account fully the feedback and concerns that were received at the earlier consultation exercise, further updates will be provided to branches/representatives on how these discussions are progressing via LTBs etc.
Romec Recognition
The Regional Structure continues to operate as agreed with Romec with all travel expenses related to Romec issues being picked up by the employer in line with the Romec Recognition Agreement. Noel McClean, PEC Member, continues to deal with the majority of issues on behalf of the department, supported by Des Carney, Romec Cleaners’ National Representative.
Due to the proposed Royal Mail Closure Programme in London, specific discussions have been taking place with regard to preference exercises within the London Area. Royal Mail Divisional Representatives have been assisting the Romec Regional Representative in this regard, in order to get the most satisfactory agreement on behalf of our members.
Romec Cleaners Bonus & Productivity Scheme
The Bonus and Productivity Scheme continues to be the subject of review, ongoing site issues being dealt with departmentally.
Romec Pay & Conditions
Following protracted negotiations with Romec on pay, which was due in January 2011, the Postal Executive finally agreed to recommend a pay settlement to Romec members in August 2011. The reported difficulties in Romec, with regard to the financial constraints placed upon them by Royal Mail in the negotiation of a new contract, had been the major delay in reaching an agreement.
The achievement of satisfactory Managing Surplus arrangements had been against the backdrop of a particularly difficult situation arising during the North West Mail Centre Review. This, in turn, had delayed the final agreement somewhat, but was finally successfully negotiated as part of that package. Pay discussions for 2012 are now due on January 1st 2012.
Annual Leave Purchase Scheme
Despite the best efforts of the department to get this scheme up and running, this has not yet been possible. The ongoing financial turmoil experienced by Romec has cast a shadow over any perceived ‘benefit’ initiatives throughout this year, but discussions are now back on track to SECTIONAL ISSUES – ROYAL MAIL LETTERS
establish the best way to introduce the scheme in the short to medium term.
Uniforms
Individual issues in relation to Uniform have been raised with the department and dealt with by PEC member, Lesley Mclean
Following successful trials of the new All Weather Coats, deployment continued throughout 2011 upon introduction of revisions.
Various Health & Safety concerns have been raised by Dave Joyce, National Officer for Health, Safety & Environment.
Standard Operating Procedures
The regular meetings between the department and Royal Mail continue to be dealt with by Joe Malone, PEC Member, assisted by Mike Newport from the SPDO Group and Gary Hodkinson, Divisional Rep.
BT2010 Measurement and Performance Standards
Throughout the year, the department continued to work on the tools and processes contained in, and covered off by, the terms of the BT2010 agreement. However, widely reported introduction of un-agreed tools and standards culminated in high level negotiations between Royal Mail and the CWU, with ACAS in attendance. A working group has been established consisting of Paul Chapman, Scott McGeough, Peter Sinnott and Neil Lambert.
The issues still at the heart of these discussions are:
IWT BSI Upper Decile Weekly Resourcing
The department did, however, reach agreement on the IWT Flexing Tool and commenced a series of Joint Rollout Briefings at high level to coach reps and managers on its use in times of high and low traffic receipts.
ZAP
Good progress has been made on the issues under the banner of the Zero Accident Programme. The discussions on a revised RTA procedure continue led by Dave Robertson, PEC member, assisted by Bobby Weatherall. One to One Driver interventions were piloted in three offices during 2011 with no adverse comments.
Minor Repairs
Subject of ongoing dialogue throughout the whole of 2011, and led by Bill Steel. PEC member. on behalf of the department. The outstanding issues of Reward and the Safety Standards, surrounding the introduction, proved to be a barrier to reaching a final agreed position.
Royal Mail denied that a pre-existing claim for reward existed from the introduction of BT2010, and proceeded to attempt the roll out of the initiative in December 2011. Advice was given to Branches in the clearest terms, based on the fact that our claim for reward had not been met and that the safety processes required had not been concluded.
Private Cars on Delivery
Following the introduction of BT2010 and, in particular, subsequent to the introduction into Delivery Units of a Methods Revision, the use of Private Cars on Delivery is to cease. This is a mandatory instruction arising out of BT2010.
There have, however, been a number of instances where Royal Mail Delivery Managers have continued to allow and encourage people to use their private vehicles in some form, as part of their delivery process. The department undertook a survey through the offices of the Divisional Representatives, to establish how widespread the issue was. Although not a major problem, there were widespread reports of sporadic use of cars and this was raised with Royal Mail. BT2010 could not be clearer in intent, the removal of Private Cars on Delivery is mandatory once Delivery Methods have been deployed and any bonds in place must be withdrawn.
SECTIONAL ISSUES – ROYAL MAIL LETTERS
Private Driver Trials
The Postal Executive has agreed in principle the Primary Drivers Trials, to be carried out at a couple of locations. However, due to the difficulties experienced during the discussions on the Road Traffic Accident Procedure, the PEC also agreed that the initiative should not be introduced until such time as a successful resolution on the other discussions had been achieved.
Collections
Collection issues are now being dealt with on behalf of the department by Tony Bouch, PEC member. Regular meetings and updates are held with Royal Mail Collections National Manager, Nick Hemmings, in order to iron out any difficulties, with the introduction of Collections Revisions across the country.
A revised training package is currently being discussed with Royal Mail for introduction and rollout in the near future.
Delivery Equipment/Methods
The reinstatement of the Delivery Optimisation Group (DOG) following BT2010 has now taken place. The Group discusses all issues regarding equipment, methods and measurement within deliveries. The department is represented on this group by Noel McClean, PEC Member, and Paul Chapman, together with John Nash from the Walk Design Group.
The continued use of Private Cars on Delivery was raised in this forum, as a result of the circulation of a list of offices where Methods Revisions had been deployed. The re-affirmation of the mandatory use of designated equipment, once methods were deployed, was contained in a joint statement from the Delivery & Collections Director and Bob Gibson, Assistant Secretary, Outdoor Department.
Indoor Flow/Improvement Process
Joint Statement was agreed and circulated in November 2011. Following this, a number of problems/issues were raised with the department and, as a consequence, Bob Gibson wrote to the C&D Director, raising our concerns, which were subsequently circulated via a LTB. Meetings have taken place at national level to see if a satisfactory resolution can be found. At the time of writing, the embargo on flow remains.
Door to Door
Regular update meetings on product and quality, agreed in BT2010, are back on track after a lapse early in the year. Reports from Divisional Representatives that D2D contracts were falling at an alarming rate were investigated – with figures provided by Royal Mail clearly conflicting with that view.
There were, however, numerous reports from divisions of offices suffering from late arrivals of D2D in the units for various reasons. The department continues to raise these problems with Royal Mail, who continue to investigate all reports together with instances of non delivery of items.
Delivery to Neighbour Trial
During the latter part of 2011, Royal Mail applied to Postcomm to commence a Delivery to Neighbour Trial in designated parts of the UK. The aim being to raise the number of items delivered at first time of asking, albeit to a different address than the one on the item.
The trial which commenced on the 28th November 2011 is due to conclude on the 25th February 2012, and is being carried out in the 6 DSM areas listed below.
Edinburgh Central Wigan/Bolton Swansea East Norwich Gatwick North Hull
In total, 29 Delivery Units will be included in the Trial. These include 21 Royal Mail Delivery Offices and 8 Scale Payment Delivery Offices (SPDOs). This will involve 1,410 delivery walks and c.748,000 delivery addresses. The areas chosen are intended to provide a sufficiently representative sample of types of Delivery Office, population density and volume of postal items.
SECTIONAL ISSUES – ROYAL MAIL LETTERS
Full details were circulated to Branches in LTBs 922/11 and 1015/11. The trial is being overseen by Mark Baulch, PEC Member
Mail Integrity/Security
As a result of the restructure of the Postal Department at CWUHQ, Security became the responsibility of the Outdoor Department.
Regular meetings have been diarised throughout the year in a direct continuation of the process that ensued previously with the Indoor Department.
SECTIONAL ISSUES – PACKAGES AND EXPRESS
SECTION 3B – Packages and Express
Progressive Agenda Issues
In line with the 2009/10 Past and Continuing Reward and the Parcelforce Pay Agreement 2011, the following issues are currently being discussed with the business under the ‘Progressive Agenda’ section of the agreement:
Table of Success
In order to achieve the optimum benefit from the Table of Success, process discussions took place with the business on how best to evolve the concept further. It was agreed that while the process remained strong, that the approach would benefit from being refreshed and that the strategic partnership at the level of Parcelforce Director/CWU National Officer should be strengthened. With this in mind, an agreement, which was endorsed by the PEC, was reached to amend the structure of the Table and Success to allowed greater input and involvement.
Resourcing Through Growth
Branches will be aware that, as part of the Progressive Agenda, discussions with regard to staffing and Mixed Resourcing had previously taken place with the business. These discussions continued and resulted in an agreement being reached in regard to Resourcing. Through Growth, which allowed eligible temporary staff to be made permanent. The agreement was communicated to Branches via LTB 682/11.
Working on Customer Premises
Following discussions with the business, agreement was reached with regard to Working on Customer Premises. The agreement affords protection for those members who are required to work on customers’ premises in the fulfillment of customer contracts. The agreement was communicated to Branches via LTB 683/11.
Security
Following protracted discussions with the business, an agreement was achieved in regard to a new Security Agreement, which is consistent with the Union’s current policy. The agreement was communicated to Branches via LTB 170/11.
IT Capability
Discussions with the business achieved an agreement in regard to the development of new IT capability. The agreement was communicated to Branches via LTB 681/11. At the time of compiling this report, activity is taking place in the field with full CWU involvement to assess the viability of new IT equipment/processes.
Network Capacity
At the time of compiling this report, the issue of Network Capacity is still under discussion with the business.
SECTIONAL ISSUES – COUNTERS AND CASH HANDLING
SECTION 3C – Counters and Cash Handling
POL SUPPLY CHAIN
ATMs
POL Supply Chain currently replenishes ATMs that are on Royal Mail Group Sites. These are classified as ‘safe’ sites. Discussions are ongoing about extending service in this area.
5 Tonne Concept CViT Vehicle
POL are looking at a 5 tonne concept vehicle which will carry High Value Mails products, ATM Products, and still have the matrix for Pouches. At the time of writing, no vehicles have been designed, although we are in discussion on how the layout inside will look.
Business Transformation 2010 and Beyond
As part of the BT 2010 agreement, South London (Nine Elms) Mail Centre is closing. London Central CViT Depot is co-located on this site. Therefore, the CViT depot is due to close. Agreement has been reached; routes for the South London work have been rescheduled from their original depots (Dartford, Hemel Hempstead and London East).
ROYAL MAIL CUSTOMER EXPERIENCE
Implementation of Shorter Working Week and cessation of Saturday working
As part of the Pay and Modernisation Agreement 2011/13, a working party was set up to implement the shorter working week and the cessation of compulsory Saturday working for our members. This consisted of Lesley McLean, PE member, Alison Miller, Glasgow and District, Ralph Ferret, Plymouth and East Cornwall, Sara Wright, Newcastle Amal, and Diane Woolrich, Midland No. 7. The group worked extremely hard and, as a consequence, a National Shift Preference Exercise was undertaken, which has resulted in Saturday duties ending for all members working on Royal Mail campaigns. An agreement was reached, which will be implemented by February 2012, for the
remainder of campaigns to cease compulsory Saturday working.
Agency Workers
As part of the 2010/13 pay agreement we agreed to reduce the number of agency workers working within Customer Experience. As a consequence, we have been successful in moving 20 temporary contract people over to permanent employees. The vast majority of these have now joined the Union.
Accommodation Review
As part of the 2010/13 Pay and Modernisation Agreement it was agreed there would be an accommodation review. During the summer months, Customer Experience announced the closure of the Salford site due to the lease expiry. We proposed and convinced Customer Experience to open up a new operation, which they duly agreed, and moved part of the operation to Farnworth. A number of members have voluntarily been transferred to the new operation in Farnworth.
ROYAL MAIL HR SERVICES
The two payments made under CPSI bonus scheme this financial year have been met (£250 for Q1 and for Q2, making £500 in total). We are monitoring the progress of the potential payments for the remaining two quarters of the year.
CAPITA
BBC Contract
Capita won the contract on 1st December to continue running the BBC TV Licensing contract. The contract is worth an estimated £560m over eight years.
SECTIONAL ISSUES – POSTAL TECHNICAL SERVICES
SECTION 3D – Postal Technical Services
Romec Dispute / Efficiency and Enterprise Agreement
Following the failure of talks with Romec over a number of engineering issues, including breach of national agreements governing the use of technology, breach of a commitment to introduce a new engineering bonus scheme in 2011, and failure to make progress on an agreement governing work scheduling and integrated standby/callout arrangements for engineers, the Union called an industrial action ballot of Romec engineers, which concluded in April 2011 with 92% of engineers voting in favour of strike action, and 97% voting in favour of action short of strike on a 75% turnout.
Following failure to resolve the issues in a further set of talks, a campaign of industrial action took place over the summer involving a seven week callout and overtime ban and 2½ days of strike action. Talks recommenced at the end of July and a negotiators’ agreement covering all the issues in dispute was reached at the end of August, which was subsequently endorsed in an individual member ballot, 74% of members voting in favour of acceptance of the Efficiency and Enterprise agreement on a 68% turnout.
The agreement established a National Consultative Forum, independently chaired, meeting monthly with a comprehensive agenda dealing with all the key issues in the business. The first meeting of the NCF took place in December, chaired by Mary Stacey, an employment lawyer with considerable experience in the field of mediation and arbitration.
The agreement governed deployment of technology and use of information, restructuring of Projects Division, new and substantially improved standby and callout terms in Engineering Services, a £1000 lump sum payment in lieu of a bonus scheme, plus interim bonus arrangements for the period October 2011 to end March 2012.
Royal Mail: Engineering Trigger Points
There were a number of registered disagreements arising from the
interpretation of the trigger for payment of the £600 element of the transformation lump sum for engineers, plus the 2% increase in basic pay in lieu of a shorter working week. A satisfactory resolution was reached and reported to branches in LTB 217/2011, which provided for payment of the increase in basic pay, backdated to the point at which the clarified trigger was achieved.
ETC Pay Rate
Following reference to the NDG, a disagreement on the correct pay rate for the Engineering Team Coach (ETC) grade, established as part of the Business Transformation Agreement, was resolved satisfactorily by the application of the 2% April 2010 pay increase to grade rates, reported to branches in LTB 217/2011.
Technical Operator
Discussions with Royal Mail identified 6 tasks normally carried out by engineers, which could be subject of a trial of the OPG Technical Operator role agreed as part of the Business Transformation agreement. Progress on the trial has been delayed by the refusal of the business to contemplate payment of an allowance for the Technical Operator role.
Engineering Training and Professional Development
During the course of the year, following consultation with engineering representatives, an internal verification process for completion of individually tailored development programmes for those engineers who did not wish to seek external certification was confirmed.
Engineering Apprentice Scheme
An engineering apprentice scheme was finally established towards the end of 2011. At the time of writing, discussions were taking place with the objective of seeking to establish the scheme on the basis of a comprehensive set of agreed standards and processes.
SECTIONAL ISSUES – POSTAL TECHNICAL SERVICES
Engineering Bonus
During the course of the year, the Union was advised of changes to OEE targetry, which have implications for achievability of elements of the engineering bonus. It has been made clear to the business that the Union will not accept any potential reduction of bonus earnings as a result of unilateral changes to targetry.
Engineering Workload Issues
The Royal Mail and CWU joint statement “Clarification of Engineering in the Business Transformation Agreement” contained a commitment for “the CWU and Royal Mail (to) work together to define the engineering role and associated workload within a world class environment”. Unfortunately, following the resignation of Chief Engineer, Simon Barker, no progress was made on this commitment. At the time of writing, the Union is seeking to open negotiations on workload associated with CSS, iLSM and RDC automation, as well as seeking to progress the commitment contained in the Business Transformation Agreement to define the Performance Maintenance element of engineering workload.
POSTAL INDUSTRY ORGANISING (INCLUDING TRAINING, EQUALITY ISSUES AND POSTAL REGULATION)
SECTION 4
Organising
Along with the Organising Department, the PEC has progressed the “Meeting the Challenge” project. The project has now progressed to the second tranche of Branches. The project assists Branches in setting up Workplace Committee/Groups in Delivery Offices. The PEC Member and Field Organiser work with the Branch, the project lasts for four months and concludes with the adoption of a 12 month plan for the Branch.
The “Meeting the Challenge” project has been added to the Divisional Representatives meeting agenda. This will allow the PEC members and Branches to report and resolve issues.
The group is also looking at a new Representative Handbook and a Postal database that enables the CWU to email direct to Unit Representatives. Presentations on the Postal Organising and Training strategy have been made to the Regional Secretaries, Divisional Representatives and Divisional Committees when requested.
There is a pilot project in the Midlands, which involves the Regional Secretary and Field Organiser. The project will map Branch vacancies and make up of Representatives. Depending on the outcome, it is envisaged that action plans, if required, will be agreed and put in place to address any issues. If successful, this template will be rolled out across the regions.
Recruitment at UK Mail continues to grow. Branches with UK Mail members continue to run recruitment campaigns and represent members. All recruitment campaigns and initiatives are due to be reported to Divisional and Business Co-ordinating Committees so that Branches can get involved and learn from experiences.
Regulation and New Products and Services Committee
The Postal Department Review provides the Postal Executive with an opportunity to review the “B” Committee structure. The
review identified the need to introduce a revised committee aligned to Regulation, New Products and Services. The PEC recognised that, in promoting long-term job sustainability, the development and a better understanding of new markets and products was essential. It was also acknowledged that postal regulation was going to continue to impact on the future of the postal industry. In the future the Union needs to expand its ability to influence regulatory developments over and above the existing method of submissions to either Ofcom/Postcomm. We need to adopt a more positive approach.
Training The Education and Training Department, along with the R&WO Group, have agreed a new commitment on training for new Representatives, as notified to Branches in LTB 897/11. The Branch ULR will assess Representative skills and identify training requirements. A training programme has been developed that gives UK Mails Representatives the skills for self sustaining representation.
The E&T Department have surveyed Representatives who have recently completed training courses. The survey was seeking to establish the relevance of the course taken and to improve on the training provided. This survey is also assisting the E&T Department in tracking the CWU Representatives’ progress.
Also, during the coming year, it is expected that the R&WO Group will look at training for women in the workplace with the aim to increase the number of women activists and representatives.
OFFICERS AND ADVISORS
LIST OF POSTAL OFFICERS AND POLICY ADVISORS
Dave Ward Policy Advisors: Deputy General Secretary (Postal) Lionel Sampson lsampson@cwu.org Norman Candy ncandy@cwu.org Assistant Secretary Martin Akerman makerman@cwu.org Technical & Central Services
Terry Pullinger Policy Advisors: Assistant Secretary Bob McGuire bmcguire@cwu.org Parcels, Logistics & Quadrant Chris Bennett cbennett@cwu.org
Andy Furey Policy Advisors: Assistant Secretary Nicola Marshall nmarshall@cwu.org Clerical & Cash Handling Lorna Pearson lpearson@cwu.org
Bob Gibson Policy Advisor: Assistant Secretary Steve Fishwick sfishwick@cwu.org Royal Mail, Outdoor
POSTAL EXECUTIVE MEMBERS
Jane Loftus (Chair) Carl Maden Mark Baulch Joe Malone Phil Browne Noel McClean Peter Donaghy (Vice Chair) Davie Robertson Tony Bouch Bill Steel Steve Jones Ian Ward Mick Kavanagh Katrina Quirke Pete Keenlyside Mahmood Ali Lesley McLean
TO: ALL BRANCHES WITH POSTAL MEMBERS Dear Colleague CWU SUBMISSION TO OFCOM CONSULTATION Further to LTB 1078/11, please find attached the CWU Submission to the Ofcom Consultation, which was endorsed by the Postal Executive at a meeting earlier today. In essence, the new Regulator Ofcom is putting forward a set of deregulatory proposals, the salient points of which are as follows:- * A change from detailed licence obligations to a general authorisation regime. * The removal of the majority of retail and wholesale price controls. * The removal of the direct regulation of access prices. * The removal of access headroom. The Ofcom proposals are designed to strengthen the sustainability of the Universal Service and enable Royal Mail to secure a commercial return as the USO provider. In the Union submission we broadly welcome these proposals, although we do set out concerns over the affordability of the USO for social customers, should price increases go above what the market could stand. The Union has also focused on the need for a more realistic efficiency debate and for the Regulator to encourage innovation within the company. Prior to this submission, the Postal Executive received a presentation from Ofcom on the overall approach the new Regulator intends to take. We have attached the slides that were used in this presentation. Although there remains a lot of work to do, the Ofcom presentation did demonstrate to the Executive that we are beginning to see a shift in the balance of forces on regulation. Yours sincerely Dave Ward Deputy General Secretary (P) CWU Submission to Ofcom Consultation: Securing the Universal Postal Service Proposals for the Future Framework for Economic Regulation Introduction 1. The Communication Workers Union (CWU) is the largest union in the communications sector in the UK, representing over 200,000 employees in the postal, telecoms and related industries. It is the recognised union in Royal Mail Group for all non-management grades. 2. The CWU welcomes Ofcom’s consultation on the future of postal regulation from 2012 and the opportunity to contribute toward the development of a new regulatory model. Ofcom’s consultation marks a significant change in regulation and recognises the failure of the previous regulatory model. 3. The postal industry has experienced great uncertainty in recent years. Royal Mail has faced an unprecedented set of circumstances: premature liberalisation, damaging regulation, the legacy of chronic underinvestment, a massive pension deficit, a declining market and a modernisation programme requiring extensive change for workers. Royal Mail needs greater freedom to compete in order to secure its future and with it that of the universal service. Moreover, the postal industry badly needs a period of greater stability. 4. We welcome many of Ofcom’s proposals, particularly around the deregulation of non-universal service products and, though we would prefer to see no mandatory access, we further welcome the direction of changes to the downstream access regime. We believe this package is a minimum necessary to give the postal industry the opportunity for a successful future. It is essential that these changes are secured in full. 5. The Postal Service Act included an obligation on Ofcom to ensure an appropriate commercial rate of return for the universal service. The manner in which Ofcom proposes to apply this is welcome. 6. While we recognise that prices will need to rise to secure Royal Mail’s financial position, we have genuine concerns over the impact of Ofcom’s proposals on the future affordability of the universal service. We believe the interests of domestic customers and small businesses continue to need some protection. Ofcom’s Proposals 7. Ofcom is proposing to make the following changes to regulation from April 2012: * Remove price controls on first class mail, business mail, bulk mail and second class large letters and parcels * Cap the price of second class stamps for standard letters at between 45p and 55p * Allow Royal Mail to earn a commercial rate of return on activities associated with the universal service * Oblige Royal Mail to allow competitors access to its network * Allow Royal Mail to set access prices; monitor and control the difference between Royal Mail’s access and retail prices to prevent price squeeze * Require notification of any new or developing end-to-end competition; assess its impact on the sustainability of the universal service and where necessary to impose conditions on the operator * Require Royal Mail to provide extensive financial reporting information The Universal Service 8. The CWU welcomes Ofcom’s recognition that the universal service faces a real risk from Royal Mail’s current financial position and the uncertainty in the mail market. Ofcom’s regulatory decisions will go a long way towards deciding the fate of the universal service and it is vital that the regulator does all it can to honour its primary duty to secure its provision. 9. Protecting the universal service means ensuring that Royal Mail - rightly recognised by Ofcom as the only postal operator capable of providing a universal service - is financially secure so that it can continue to provide this universal service; it also means ensuring that the universal service remains affordable. 10. We welcome many of the deregulatory measures proposed by Ofcom. The regulator recognises that the postal industry, with its damaged and declining market, is in a unique position requiring a different approach to regulation. Ofcom is proposing to remove most price controls and give Royal Mail greater freedom to compete. We hope this will enable Royal Mail to improve its financial position. 11. While Ofcom is acting to make the universal service financially secure, it is important that is also gives sufficient regard to its affordability. Ofcom is proposing to remove price controls from universal service products, retaining a price cap on second class mail only. While we recognise that prices will need to rise, we have concerns as to whether Ofcom’s proposals will be sufficient to protect the needs of domestic consumers and small businesses. We believe the regulator must retain appropriate monitoring and control mechanisms to ensure the price of all universal service products remains affordable. 12. Domestic customers and small businesses are not protected by the market. Unlike bulk mailers they do not have a choice of postal operator, nor are they likely to do so in the future. It therefore remains essential that these customers continue to have some regulatory protection. 13. In considering its future regulatory approach Ofcom must also have regard to future pressures on the USO. Falling mail volumes, resulting in fewer items per delivery, is putting a strain on the USO as the cost of delivery remains largely fixed while revenue declines. This position is being further exacerbated by a growing number of delivery points, meaning the actual volume of mail is spread to more addresses. The mix of mail being delivered is also changing. Packet volumes are rising while standard letter volumes are declining. And the time taken to deliver these items is not being properly reflected in traffic weighting calculations used by Royal Mail. These factors are combining to mean a higher unit cost for Royal Mail and need to be taken account of when considering financing and efficiency issues in relation to the universal service. Affordability 14. Ofcom is proposing to remove price controls from universal service products and replace them with a price cap on second class stamped standard mail only. The cap is proposed to be somewhere between 45p and 55p. 15. Ofcom refers to Postcomm’s February 2011 discussion paper on affordability which claimed that postal services comprise 40p of the £455 average weekly expenditure and concludes this means postal services are affordable for consumers. Despite acknowledging that it has not undertaken any analysis of affordability for small businesses, Ofcom concludes that if prices are affordable for consumers they are also affordable for small businesses. 16. We recognise that reaching a definition for affordability of postal services is not straightforward. Postcomm and now Ofcom have sought to argue that because postal services make up such a small proportion of weekly household spend, prices can rise significantly and still be deemed affordable. 17. This argument initially appears compelling. However, it does not answer what proportion of household spending a good or service would need to make up before it ceased to be affordable. By this measure, if stamp prices rose ten times they would still be affordable. But it is very unlikely that stakeholders would reach the same conclusion. We recognise that Ofcom is not proposing price rises along these lines. Nevertheless we are concerned that their definition of affordability does not rule them out. 18. We believe Ofcom should have a higher regard for the needs of small businesses. The consultation document states that: “it is our working hypothesis that if prices are affordable for consumers they will also be affordable for small businesses”. We believe the needs of small businesses and domestic consumers are distinct. Their posting profiles will be different as will their sensitivities to price. 19. Small businesses are very dependent on stamped mail. The Federation of Small Businesses (FSB) has found that 90% of small businesses use stamped mail and use the post office to buy stamps and send mail. Changes to stamp prices could have a significant impact on the business models and viability of small businesses, who, just like domestic consumers, are and will remain dependent on Royal Mail. Ofcom should give them due consideration and should not simply assume that their interests are in line with consumers. Price Controls 20. We are concerned that Ofcom’s proposals for deregulating pricing controls on universal service products may not adequately ensure their future affordability. While we recognise that prices will need to rise to secure Royal Mail’s future, we think greater regard needs to be given to affordability, not only for the narrow definition of vulnerable customers contained in the Communications Act 2003, but for all domestic customers and small businesses. 21. We would like to see the regulator retain some monitoring and control mechanisms to ensure universal service products remain affordable. Ofcom should fully assess the impact of price rises on domestic consumers and small businesses on an annual basis. 22. This alternative to Ofcom’s proposals would still enable price rises, but could better ensure that the interests of universal-service-dependent consumers are protected. Domestic consumers and small businesses have not had their interests served by the introduction of competition; their ongoing protection is necessary. Commercial Rate of Return 23. The CWU welcomed the inclusion in the Postal Services Act of an explicit requirement on Ofcom to ensure that the universal service provider is able to make a reasonable commercial rate of return on any investment incurred for or in connection with the universal service. 24. Moreover, we welcome Ofcom’s recognition that all costs and revenues associated with the upstream and downstream activities in the former Royal Mail Letters business unit are central to the universal service and that it is on these activities that the business should be able to earn a commercial rate of return. Previously, Postcomm has considered the financing of the universal service simply in terms of the costs and revenues associated with universal service products. This did not adequately reflect the way the universal service operates and the interrelation between universal service and non-universal service products. Royal Mail’s ability to provide a universal service is dependent on its national integrated network. All mail passing through this network is associated with the universal service and benefits from its existence. 25. We further welcome Ofcom’s recognition that the former approach of calculating a rate of return based on tangible net assets is not appropriate in Royal Mail’s case, given its network and costs are largely people based. Instead, Ofcom is proposing to allow Royal Mail to earn a commercial rate of return on all activities connected with the universal service. This will provide Royal Mail will a greater degree of flexibility and allow it to function in a manner that better reflects the operating conditions of comparable companies. 26. With regard to the rate of return proposed by Ofcom, between 5% and 10% EBIT (Earning before Interest and Tax) we would urge the regulator to set the allowed commercial rate of return at the higher end of the scale to allow Royal Mail a greater degree of flexibility. We note that the CEPA paper on the financeability of the universal service which accompanies this consultation shows that the Dutch operator has been allowed a return of 10%. Given the extent to which TNT has been held up as an example of a successful postal operator we would question why it should not equally be appropriate to allow a similar level of return to Royal Mail. Moreover, we understand that for Ofcom to theoretically allow Royal Mail to earn a margin of up to 10% does not guarantee that the company will be able to do so; it simply means that the regulator considers it to be a realistic target and would not seek to intervene while Royal Mail is making returns below this level. We believe that it is reasonable for the company to aim for returns in line with those earned in its highest performing comparators. The regulator should encourage and reflect this by indicating a rate of commercial return at the higher end the scale. Removal of Non-Universal Service Price Controls 27. The CWU supports Ofcom’s approach regarding the removal of price controls on non-universal service products. As Ofcom recognises, Royal Mail is currently in a precarious financial position. The impact of a very restrictive regulatory regime, the early liberalisation of the UK postal services market and falling mail volumes have all threatened the future of Royal Mail’s business and consequently the viability of the universal service. 28. Subject to the protection of universal service customers – domestic customers and small businesses – we believe Royal Mail should be given freedom to price products commercially, unrestrained by regulatory price controls. As Ofcom notes, price controls have previously been unsuccessful. We endorse the conclusion that Royal Mail’s best chance of success is to allow it to compete fairly and in a deregulated commercial environment. These changes must be implemented in full if Royal Mail is to secure its financial position and ensure the future of the universal service. Access 29. As we stated in our submission to Ofcom’s access review in May 2011, we support the full deregulation of downstream access and are opposed to the mandating of access. We would therefore like to see Ofcom go further than its current proposals; nevertheless, we recognise that Ofcom is proposing a significant move in the right direction and we welcome it proposals for partial deregulation. These deregulatory proposals constitute the minimum necessary changes to give Royal Mail the freedom to compete and it is essential that they are secured in full. Mandatory access 30. We do not believe mandating access is necessary or desirable. Ofcom clearly recognises Royal Mail’s difficult financial position and the threat this poses to postal services in the UK and the universal service. The introduction of downstream access and the inappropriate regulation that has accompanied it has been a major contributing factor to Royal Mail’s current position. We cannot see why the regulator should choose to continue mandating such a system. At a time where the regulator is recognising that the best way to ensure the future of Royal Mail is to remove regulatory intervention, we would urge Ofcom to follow this through consistently and not to mandate access. 31. We do however recognise that Ofcom’s proposals mark a significant shift in approach from the current regulatory regime. If access is to be mandated we would support it being limited, as Ofcom proposes, to the Inward Mail Centre (IMC). This is where the bulk of access to Royal Mail’s network currently occurs and is a form which sits most appropriately with the company’s operational practices; mandating access at other points in the pipeline is likely to be more disruptive and less efficient. Pricing 32. We welcome Ofcom’s proposals to allow Royal Mail freedom to set access prices. However, we would urge the regulator to ensure this freedom is genuine. In defending itself against criticisms of the access regime, Postcomm routinely stated that it was not responsible for the low level of access prices as these had been agreed by Royal Mail. This description of events does not accurately describe the situation. Our understanding is that Royal Mail reached the first downstream access agreement under pressure of intervention from the regulator. An inappropriate price was thus agreed and reflected in future access prices. 33. We would like the regulator to be mindful of the extent to which it involves itself in the setting of access prices. It is vital that access prices are set at a reasonable level that allows Royal Mail to cover its costs, compete effectively and make a reasonable rate of return. We would therefore urge the regulator to distance itself from this process and not to set the terms of engagement for setting access prices. Margin-squeeze control 34. Again, we welcome Ofcom’s proposal to remove the current access headroom regulation. This has been a hugely damaging piece of regulation that was kept in place for too long. 35. We recognise that in the absence of appropriate cost data the regulator will wish to be reassured that margin or price squeeze is not taking place. However, we would urge the regulator to ensure that the proposed temporary margin-squeeze control does not inadvertently require Royal Mail to maintain an excessive margin between its access and retail prices. 36. One of our major concerns arising from impact of downstream access has been the extent to which it has undermined Royal Mail’s upstream business. The fall in upstream mail volumes has damaged the business financially, but it has also undermined the viability of the Royal Mail’s entire upstream operation. A successful integrated end-to-end business is essential for Royal Mail’s future and that of the universal service. We need to see Royal Mail not only stem the loss of upstream mail volumes but start to win them back. We hope Ofcom’s proposals will not continue to stifle Royal Mail’s ability to compete. Moreover, we would urge Ofcom and Royal Mail to work swiftly to ensure the necessary financial data is available to enable the move from this temporary margin-squeeze control to a monitoring approach. End-to-end Competition 37. We welcome Ofcom’s recognition that end-to-end competition poses a threat to the sustainability of the universal service. As is well documented, Royal Mail is facing a very difficult financial situation. The company could not withstand the loss of market share in deliveries. To do so would threaten the viability of the universal service. 38. The Postal Services Act allows for the imposition of a notification requirement on any postal operator entering or expanding into the delivery market. Where developments pose a threat to the universal service Ofcom may impose conditions on the private postal operator. It is very important that this mechanism operates effectively and that the regulator takes swift action in such cases to protect the universal service. 39. We support the introduction of such a requirement and would encourage the regulator to use all the powers available to it to protect the universal service from the potentially damaging impact of competition. 40. We will respond to the regulator’s separate and more detailed consultation on the notification requirements in due course. Financial Reporting 41. We note that Ofcom is proposing to pursue Postcomm’s previous proposals for extensive financial reporting. We are sympathetic to Ofcom’s need for a clear understanding of Royal Mail’s finances - in particular, detail relating to its costs and revenues - in order to regulate effective. However, we have two key concerns: that Royal Mail should not be unfairly burdened by financial reporting requirements; and that Royal Mail should not be compromised by having to publish financially sensitive information. 42. We have concerns that the level of information Ofcom is requesting that Royal Mail publish may result in an excessive burden on the company, particularly if it is being asked to produce information solely for regulatory purposes. We would urge Ofcom to seek to minimise the extent of the financial reporting it requires of Royal Mail. 43. While we recognise that there is a strong case for Royal Mail to provide extensive financial information to Ofcom, it does not follow that this information needs to be put in the public domain. Competitors’ oversight of the regulatory process should not include access to detailed commercially-sensitive information. Royal Mail’s position should not be unduly compromised by the publication of such information; nor should it be required to put in the public domain a level of detail that its competitors would not see fit to publish in relation their own operations. Efficiency and Innovation 44. Ofcom argues that Royal Mail must continue to improve efficiency if it is to avoid increasing prices to address falling volumes. The regulator states that if its new regulatory framework does not lead to increased efficiency it will have failed to meet one of its fundamental goals. It is therefore proposing to monitor Royal Mail’s performance with the option to re-regulate if Royal Mail is not found to be making adequate efficiency gains. 45. Previous efficiency targets imposed by Postcomm were shown to be unachievable. Ofcom acknowledges this and is therefore not proposing to implement its own explicit efficiency targets. This position is welcome. However, as an alternative the regulator is endorsing the efficiency savings which underpin Royal Mail’s current business plan. Therefore in monitoring the extent to which Royal Mail becomes more efficient, Ofcom will monitor whether it achieves the efficiency savings projected in the business plan. This is a cause of serious concern for the union. 46. We question the achievability of Royal Mail’s efficiency targets which it is currently struggling to meet, in many cases because these have been ill thought through and are unrealistic. We therefore question a regulatory model based upon such foundations. We would not like to see Ofcom choosing to change the direction of regulation on the basis of Royal Mail’s failure to meet the targets in its business plan. Ofcom needs to monitor efficiency based on realistic and achievable goals. It is also important to recognise that efficiency is more complicated than simply meeting targets. Efficiency must not mean reducing costs at the expense of service standards. 47. We would like to see an open debate about the meaning of efficiency in Royal Mail. The debate has too often been muddled, with the implication being that employees are not working well enough and that Royal Mail compares unfavourably to its competitors. Employees at Royal Mail are working hard to implement change and are enduring increasing workloads and the strains of a more physical job as the length of deliveries grows. We need to be realistic about what can be achieved and ensure that efficiency projections are valid. 48. We would like to see greater emphasis on innovation at Royal Mail. The company must become more innovative if it is to secure a future for itself and the UK postal industry. We welcome the announcement of the relaxation the notification requirements on new products and product changes and will respond to this consultation separately. We are further encouraged by a growing focus on the innovation of new products and services in Royal Mail’s business plan. Unfortunately it has taken a long time for the business to reach this point. We believe an excessive focus on cost cutting and competition on price alone has also stifled innovation. 49. The regulator must look beyond deregulation to stimulate innovation and consider how it can be positively promoted and encouraged, using what regulatory tools are available. It is crucial that confidence in the postal industry is rebuilt. To achieve this we need a clearly articulated and positive vision of a future for Royal Mail and for postal services in the UK. This vision must be facilitated by the regulator and supported by employees and stakeholders alike. For further information on the view of the CWU contact: Billy Hayes General Secretary Communication Workers Union 150 The Broadway London SW19 1RX Tel: 020 8971 7251
ISSUE 1
TO: ALL BRANCHES WITH POSTAL MEMBERS
Dear Colleague
BUSINESS TRANSFORMATION – UPDATE ON NATIONAL TALKS – IMPORTANT INFORMATION
The purpose of this LTB is to provide an end of year overview on Business Transformation, explain the current state of play in national talks and inform Postal Branches of an important decision taken by the Postal Executive. Overview
Deploying the Business Transformation Agreement was never going to be easy. It was always going to be about delivering very difficult but necessary major change, whilst the company and our members face unprecedented circumstances which threaten everybody’s future.
However, earlier in the year our task was made much harder by the company’s announcement on ColleagueShare and the introduction of a new business plan that prolongs the transformation programme in response to sharper revenue and volume decline than that forecast in the original plan.
Deployment has also been played out against the background of business cash flow problems, difficulties in delivery revisions and the Postal Services Bill becoming an Act of Parliament. Again, the threat of privatisation and uncertainty over pensions, regulation and European State Aid all amount to serious destabilising factors. In response to all these developments, the Union initially tabled a policy that was placed before a national briefing in March 2011. Subsequently, a wider policy was agreed at Annual Conference (Emergency Motion 3) that brought together the Union’s industrial and political agenda. Eventually, this led to a Joint Statement being agreed with the company for fresh national talks.
As these talks have progressed, tensions have heightened over growing problems, particularly in delivery, with the company squeezing frontline employees to make additional savings under what has been termed “a business as usual approach”. In response the Union had told Royal Mail that we do not see this as part of our agreement and that these managerial initiatives will inevitably damage progress with the agreement.
All in all, it is hard to imagine a more difficult set of circumstances in which to successfully deliver transformation, although it could be argued that CWU members have done well to maintain any kind of momentum and it should be recognised that there has been some notable successes along the way. Despite the problems being encountered the Union remains committed to deploying the agreements we have reached, but we are also determined, where necessary, to hold the company to account to ensure CWU members are treated fairly.
National Talks – Current State of Play
In recent talks, followed up by correspondence from the company, Royal Mail stated that they wanted to conclude national talks by the end of January 2012. The company had recognised, in correspondence, this would need to include final confirmation of 2012 pay, consideration of extended job security, a replacement for Colleagueshare and the possibility of a pay deal for 2013 and beyond. Clearly any agreement would also need to move forward World Class Mail and operational change.
The correspondence received from Royal Mail was viewed by the Executive as a positive development, albeit set against a background of managerial actions in the field that are destabilising revision activity.
At our most recent meeting the company indicated that they needed more time to prepare detailed positions and costings to address the Union’s agenda. However, the main focus of the meeting was the developing position around the company’s “business as usual approach” and the problems reported to Branches by the Outdoor Secretary. The Union could not have made it any clearer that resolving these issues had to be prioritised.
Business Transformation Priorities in the New Year – Postal Executive Decision In January, the pressure on everybody to deliver workable Business Transformation revisions will greatly intensify, as will the need to make real progress on extended job security, overall reward and World Class Mail. At the same time the Union will be engaged in wider talks to secure our policies on all the issues associated with the Postal Services Act.
The Postal Executive considered all of these issues at its meeting on the 6th December and agreed that we needed to bring the situation to a head. It was agreed that the DGS (P) would write to the Chief Executive and put the company on notice that unless a satisfactory solution to the issues outlined in the above paragraph can be found by no later than week commencing 16th January, the Union will have no alternative other than to formally suspend CWU support and involvement in all business transformation revision activity.
The aforementioned decision has not been taken lightly and the Postal Executive continues to recognise the context the business operates within and the need for Royal Mail and CWU to successfully deliver Business Transformation. However, we have reached the point where the current managerial approach must be challenged, if both parties are to make progress in line with the national agreement. In the meantime, meetings will continue with the employer and the Postal Executive will then meet on the 18th January 2012, to receive detailed reports from the relevant National Officers on the progress made and take decisions as appropriate. Please ensure that the content of this LTB is communicated to all CWU representatives and our members in the workplace.
Any general enquiries on the above LTB should be addressed to the DGS (P) department, specific functional enquiries to the relevant Assistant Secretary.
Yours sincerely
Dave Ward Deputy General Secretary (P)
To: All Branches,
Dear Colleagues,
Royal Mail Letters/CWU - Severe Weather Conditions - Joint Statement & Communication on Safe Working Arrangements and New On Line Severe Weather Risk Assessment Tool:
Discussions have been taking place over recent months with Royal Mail HQ in order to ensure that our members in Royal Mail are well prepared for this year for any Severe Weather. The aim is to make sure that extra care is taken in managing and controlling the risks that are faced and ensuring that the risks are assessed before members go out and that everyone remains vigilant and aware whilst out on delivery, collection or driving.
Royal Mail and the CWU Health, Safety & Environment Department have reached agreement on a new National Severe Weather Conditions Joint Statement/Safety Briefing which will be issued to all Operational Managers and Area Safety Representatives and rolled out nationally, supported by the a new 'On-Line Severe Weather Risk Assessment tool' in order to ensure that Offices and staff across the country are well prepared for this year's Snow, Ice, flooding and other extremes should the country be hit with the problems faced in recent years. The joint aim being to make sure that extra care is taken in controlling the risks faced by members whilst out on delivery, collection or driving in bad weather conditions. A copy of which is attached for your attention, information and action.
Familiarisation training and testing the new 'On-Line Severe Weather Risk Assessment tool' has been underway for managers on Area Safety Reps over the last two months and both Royal Mail HQ and the CWU Health, Safety and Environment Department are agreed that it is vital that preparations are completed and everyone is ready, making sure that everyone takes extra care, that the risks are fully assessed before staff go out on collections and deliveries and that everyone remains vigilant and aware once out on delivery or collection whether on foot or in a vehicle. It has been agreed that all CWU Area Safety Representatives will also be trained on the 'On-Line Severe Weather Risk Assessment tool' and all feedback and suggested improvements are welcome in order to make improvements for future years.
Managers will ensure they and their staff are familiarised with the new 'On Line Severe Weather Risk Assessment' which has been extensively updated and improved, following feedback from last year’s trials. This Severe Weather Risk Assessment asks a series of questions, then gives a ‘risk rating indication’ for that location. The Office Manager completing the Risk Assessment will immediately send a copy to their line manager then ensure all actions and controls are communicated and implemented to eliminate or reduce accident risks to an acceptable level. Area Safety Representative can obtain copies of Risk Assessment on request.
The computer based 'Severe Weather Decision Tool' was originally designed by former CWU ASR Mick Barnes, now a Safety Manager in the NW Region Safety Team.
The Tool was trialed last year in two Regions and subsequently underwent further development work with the aim of introduction this year. A number of improvements and simplifications were carried out, making the Tool easier and quicker to use. The Tool was evaluated as part a joint review earlier this year and following roll out, will be subject to national review in 6 months time, next spring.
The National brief for Operations Managers is clear;
Involvement and Consultation with CWU Area Safety Reps - Again the agreed National Joint Communication and Managers Brief is clear;
Yard Safety Yard safety was a major problem last year. To improve safety this year a national gritting and snow clearance contract has been arranged covering all Royal Mail sites provided by Contractors and a monitoring and reporting process has been put in place to ensure yards , loading bays, access roads, walkways and car parks on Royal Mail Group's premises are cleared of snow and ice and maintained in as safe a condition as possible.
Driving, Cycles and Trolleys (HCT & LWT) The "Joint Severe Weather Briefing" outlines advice on driving in adverse weather as well as advice on the use of cycles, high capacity trolleys and lightweight trolleys. Before going out on delivery it will be assessed as to whether it is safe to use bicycles, HCT's and LWT's and where it is not, alternative arrangements must be made. To assist Drivers this year 6,800 Cans of Deicer, 6,700 Bottles of Windscreen Washer Concentrate and 7,500 Ice Scrappers have been purchased
'Spikeys' and 'Grip-Lites' 'Spikys' anti- slip footwear devices will be issued to all Royal Mail Delivery and Collection staff this winter in order to give a safer footing and reassurance to members whilst they are out in snow and icy conditions. 'SPIKY' are rubber straps that fit over shoes or boots to prevent slipping. The device provides reassurance at all times during ice and snow. 'SPIKYS' can be worn over any shoe or boot. They are manufactured from 76% natural rubber and 24% high-grade synthetic rubber, which give them the ability to stretch to 6.5 times their original length and allowing them to accommodate a limitless variety of footwear. The actual spikes are made from hardwearing steel, and tests have shown that they wear well and will give you safer footing and reassurance. 'Spikys' were successfully trialled in RM Scotland and introduced more widely last year. There were supply problems in 2010 when the sudden cold snap caught Royal Mail unaware and only 25,000 pairs of 'Spikeys' could be procured. This winter the business has 125,000 pairs of 'Spikeys' to distribute to staff with a further 30,000 pairs in store, in reserve plus sufficient repair kits for replacing studs. 'Grip-Lites' will be trialed this year in a number of Offices, replacing the 'snow-chain' anti-slip footwear. 'Grip-Lites' is an all-traction, over-shoe device designed to increase traction in a variety of slippery conditions from snow and ice to oil and grease. Like 'Spikeys' they fits securely over all types of work boots and shoes. The sole features bands of sandpaper-like aluminum oxide. These bands are composed of hundreds of tiny traction points that enable 'Grip-Lites' to increase traction above and beyond that of normal rubber-soled shoes and boots. The sandpaper-like bands are both non-conductive and non-sparking. These are versatile as they not only help to increase traction in slippery conditions, but they are also safe to wear indoors as well as while driving, making them the ideal solution for delivery/collection drivers.. Members experiencing any problems should contact their Area Safety Representative.
'Snow Socks' and Winter Tyres'
Snow socks or tyre socks are a quick and convenient solution to getting moving on the snow. Easy to carry in the vehicle the snow socks simply fit over the driving wheels of your vehicle and are fitted in 2 minutes. Tests say they are up to 98% as effective as snow chains on snow covered surfaces, but they only take 2 minutes to fit! Even for a first time user it is a simple task! They are quick to fit and also easy to fit and remove, there is no working out which bit of chain goes where, they are very simple to slip on to the tyres. Snow Socks were trialed in a vaierty of locations last year. See LTB 1132/10. Royal Mail have purchased a further 350 sets to test and trial this year.
Winter tyres, or cold weather tyres as they are also known are made with a specialist compound and tread offering drivers better grip and control. These types of tyre are designed to cope with difficult conditions such as snow and ice and industry experts say they work far better than regular tyres in temperatures less than seven degrees, by dramatically reducing stopping distances. Royal Mail has also purchased a number of sets of Winter Tyres to Test and Trial this Winter.
The plan is to select a number of Offices to Trial the Snow Socks and the Winter Tyres.
The Agreed 'Severe Weather Joint Statement' achieved this year is the best one we've ever achieved as you'll appreciate and again we've kept IR issues out of it. It's to cover Health and Safety full stop.
The 'WRAP' Walk Risk Assessment (WRAP) is supplemented by the Severe Weather Risk Assessment process which is "MANDATORY" this year and management must carry them out correctly. They have been trained accordingly. It has also been agreed that all ASRs will be trained on the new on line Severe Weather Risk Assessment Tool. It's not perfect but its good and feedback is welcome in order to improve it wherever possible.
To ensure that Severe Weather Risk Assessments are done and at the right time, once completed the DOM will send it off to their DSM. The file will have the time on it that it was done and it will be picked up if done to late in the day. If a DOM fails to carry out a Severe Weather Risk Assessment then this will be picked up by the Regional Safety Teams.
When the Severe Weather Risk Assessments are done, the DOM’s should be in touch with the ASR, providing details of how they’ve arrived at the Levels they are at and taking the ASRs input. ASRs are urged to be 'pro-active' - don't sit waiting for phone calls from managers in your area, I wouldn't advise any ASR to adopt that strategy. If the Risk Assessments are not done suitably and sufficiently that contact the DSM and Regional Safety Team. Busy, under pressure managers may have to be chased and ASRs need to be pro-active, pointing out the terms of the agreement, insisting on input and involvement, flagging up problems to DSMs, Regional Safety Director and Regional Delivery Director.
The Royal Mail Operations/CWU - Severe Weather Joint Statement should work well if followed to the letter. This provided ASRs with full involvement in decision making and provides a high level of protection by way of a very cautionary approach. Worst hit parts of the country will end up suspending deliveries if heavy snowfalls and ice etc hit the country as in the past two years and floods are again possible. The North and Scotland has already had snow and extremely high winds, causing some damage and fatalities.
There certainly should be more involvement and consultation with ASRs this year than ever before and there should be far more equipment available for staff.
The foundation of the agreed policy is that Managers must support staff in making the right decisions, making sure that everyone is prepared and knows how to minimise the risk of having accidents through good communication, risk controls and adjustments, strictly adhering to safety standards, working methods, equipment and PPE use.
Members are asked to remain aware of safety hazards and if they feel their delivery walk has become too dangerous or inaccessible due to poor weather, Managers will support their decision not to carry on and will encourage them to return to the office.
The agreed "Joint Statement' on Severe Weather" ensures that in line with Royal Mails Safety Policy, CWU Safety Representatives will be engaged and consulted on severe weather risk management decisions.
The foundation of the agreed policy is that Managers must support staff in making the right decisions, making sure that everyone is prepared and knows how to minimise the risk of having accidents through good communication, risk controls and adjustments, strictly adhering to safety standards, working methods, equipment and PPE use.
Members are asked to remain aware of safety hazards and if they feel their delivery walk has become too dangerous or inaccessible due to poor weather, Managers will support their decision not to carry on and will encourage them to return to the office.
The agreed "Joint Statement' on Severe Weather" ensures that in line with Royal Mails Safety Policy, CWU Safety Representatives will be engaged and consulted on severe weather risk management decisions.
Best Regards
Dave Joyce National Health, Safety & Environment Officer
Attachments -
14th December 2011 York Container - Cardboard Sleeves Contingency Use Arrangements Christmas Pressure Period
Branches and Area Safety Representatives in particular will be well aware of the Union's position In relation to the use of York Container Cardboard Sleeves which were introduced by Royal Mail in agreement with the CWU/HQ Postal Department in the mid/late 1990's, specifically for use on the Amazon contract. Amazon packet/small parcel traffic has continued to grow with the popularity and indeed boom of internet sales and Amazon's expanding range of products on offer, becoming Royal Mail's second biggest customer, with the contract now worth about 25 million pounds a year.
Over subsequent years Mail Centre Managers (MCMs) were made responsible for the budget and purchase of York Container Sleeves and as a result certain MCMs began to misuse Cardboard Sleeves in growing numbers on traffic outside the of the Amazon Contract as packet traffic growth continued and Cardboard Sleeves were cheaper to purchase than Auto-Levelling Packet (ALP) Sleeves. These MCMs were primarily concerned with the loss of ALPs they had purchased being despatched into the Network which were not being repatriated but instead were being kept by other Mail Centres to use etc. The Union raised objections to the growing misuse and made strong representations on both efficiency and health and safety grounds.
The HSE were consulted and it was agreed that an Ergonomic Study would be undertaken. The main recommendation from the Ergonomic Study was that when being used for loose packet traffic, the weight of items should be limited and the base height of the sleeve should be raised to reduce musculoskeletal risks when used repetitively, bending and lifting to sort packets from the bottom of the sleeves. The HSE were content with the report's recommendations which stated that for loose packet traffic, false bases and supporting cross members should be fitted. The Union's position was made clear - that being a strong preference for ALP Sleeves as standard equipment with no extension of Cardboard Sleeves use outside of the Amazon Contract which Royal Mail at one stage extended to a QVC Contract.
With the design and strength of the Auto-Levelling Packet (ALP) Sleeve being improved in a Mk 2 version, Royal Mail agreed that Cardboard Sleeves should only be used as an emergency, fall back contingency measure with central clearance needed before use. In the meantime more ALP Sleeves would be purchased by Mail Centres. In relation to the purchase process the Union expressed the strong view that ALP Sleeves should be procured centrally by Assets as with other equipment to avoid Mail Centre Managers from being reluctant to purchase ALPs in Mail Centres because they were losing large numbers into the Network and not getting them back.
Following discussions with Royal Mail the following actions were taken to stop misuse:-
(a) In 2005 Mike Eady then Head of CPC issued an Instruction to MCMs not to misuse Cardboard Sleeves. (b) On 2 November 2006 Tony Fox Logistics Director issued an instruction to all senior managers and MCMs reaffirming the commitment to remove cardboard sleeves from the Mail Centre network. (c) On 12 December 2008, Opsflash 169 was issued by Mike Broderick of Central Postal Control to all Managers instructing that Cardboard Sleeves/York Inserts are not to be used for Outward Despatches by Mail Centres without prior permission from CPC and this will only be given in exceptional circumstances.
In short this equipment has been withdrawn from general use years ago and for very good reasons.
The grounds for withdrawal of Cardboard Sleeves were set out by Central Postal Control (CPC) in the instructions sent to MCMs as follows:- (a) The use of Cardboard Sleeves for packet traffic was having an adverse affect on the network, (b) Safe Systems of Work were not being followed, (c) Increased York Container demands (Cardboard Sleeve only holds 65% of a full York with an ALP Sleeve), (d) Reduced vehicle utilisation (less packets per York Container) (e) Large amounts of unwanted, waste cardboard requiring repatriation. (or recycling - Also environmental issue).
When more recently the York Container Safe System of Work was jointly reviewed it was agreed to amend the SSoW to state "Cardboard Sleeves - Only to used for Approved Contracts (not permitted for any other mail stream)."
More recently Royal Mail Assets have centrally purchased ALP Sleeves in large numbers large numbers which was welcomed and Royal Mail have in fact put 80,000 additional York Containers and 97,000 additional ALP Sleeve in to the network prior to Xmas 2011.
However, as Royal Mail have moved further into the busiest period at Christmas, and packet volumes begin to peak, the need to move packets through the network quickly becomes critical and demand for ALP Sleeves increases. Despite the fact that Royal Mail have put 80,000 additional York Containers and 97,000 additional ALP Sleeve in to the network, additional to the existing 200,000 Yorks in circulation with over half of those containing an ALP Sleeve, Royal Mail have informed us that they are beginning to see problems with sites struggling to get sufficient numbers of ALP Sleeves to meet their operational requirements. The Central Asset Team continues to push the Regions to ensure that they clear their Delivery Offices every day but they are still struggling to meet the demand. Royal Mail have assured CWU/HQ that they are doing everything possible to ensure that Regions repatriate as many York Containers and ALP Sleeves as possible out of their Delivery Offices but unfortunately but the business is now seeing the a continued increase in packet volumes and traffic. AS a result Regions are struggling to get sufficient ALP Sleeves back into their Packet Outhouse operations to meet demand.
As a critical, emergency situation has been reached in many Offices, Royal Mail have proposed that as a Christmas contingency only, the use of Cardboard Sleeves/York Inserts will be permitted as a last resort as follows:- (a) For Inward despatches or transfers from Mail Centres to Delivery offices. (b) For Outward despatches by Mail Centres and Packet outhouses. (c) Before this contingency is implemented however the site must ensure that all efforts have been made to get ALPs back from their DO’s and that permission has sought and been given by the Regional Asset teams.
IMPORTANT:- If Cardboard Sleeves/York Inserts are used as a contingency, the site must ensure that:- (a) the CWU Area Safety Representative and Area Processing Representative are consulted should this contingency need to be implemented. (b) that the SSoW is followed and (c) that the mandatory cross-members and false bases must be fitted and used correctly in Cardboard Sleeved York Containers. Any offices found not to be compliant with this instruction will be asked to investigate reasons why this has happened and furnish a report on remedial action taken with the report shared with the CWU Area Safety Representative. Such breaches of the SSoW by Management will be viewed as serious!
Once the Christmas pressure period is finished, the contingency use of Cardboard Sleeve inserts will be withdrawn and Offices will revert back to Business as usual with Cardboard Sleeves used on the agreed Amazon Contract only and the packet operation must revert back to using ALP Sleeves for Inward transfers to DOs and Outward despatches to Mail Centres and Regional Distribution Centres.
Cardboard Sleeves SSoW summary from York Container SSoW:-
Following consultation with Terry Pullinger Assistant Secretary in the Postal Department, CWU/HQ is prepared to support the current instructions of Cardboard Sleeves being used as a last resort if all else fails, during the Christmas Pressure period only as set out above subject to consultation with the appropriate CWU ASR and APR with the SSoW followed plus the mandatory cross-members and false bases used at all times. Also Royal Mail National Assets Team and Regional Assets Teams will continue to push the Regions to ensure ALP Sleeves are recovered from the DOs on our daily basis.
Royal Mail have stated that we have seen a considerable growth in packet volumes and this continues to grow year on year. Despite the fact that Royal Mail have purchased more ALP Sleeves this year than they have in the last 8 years, demand is outstripping current resources as we move further into the Christmas period and the only alternative available as a fall back at this present time is cardboard sleeves, whilst accepting that it isn’t the best solution. However they add, it is the only contingency Royal Mail has which is easily available and will not cause too many operational problems which both Royal Mail and the Union wouldn’t want. Royal Mail have reiterated the assurance that this will only be over the Christmas pressure period to ensure Christmas runs smoothly.
Finally, Royal Mail in consultation with the Union is working with manufacturers on an alternative, new 'Packet Ready' York Container which doesn't require a Sleeve and can easily be converted to and from Packet traffic use and prototypes are currently being examined and discussed with the next stage being the production of a prototype trial batch to be tested in a closed loop operation, hopefully in 2012.
ASRs should ensure they carry out periodic Safety Inspections and spot checks at Offices, especially the Temporary Dedicated Packet Network Outhouses where high numbers of Temporary Christmas staff are employed to ensure the SSoW is followed. See LTBs 963/11 and 964/11.
The contents of this LTB have been agreed with Shaun Buttress Royal Mail Logistics, Assets Supply Chain Manager.
Yours Sincerely
Dave Joyce National Health, Safety & Environment Officer
Attachment: York Container SSoW
POL ADMIN AND SUPPLY CHAIN PAY – BONUS ARRANGEMENTS - 14th December 2011
Further to LTB 1013, dated 28th November 2011; unfortunately, there have been reports that some confusion has arisen from this communication. In particular, Admin members may have thought they were due to receive a £500 bonus in their December salaries. This position is incorrect for the following reasons:
Firstly, the £500 bonus only applied to those members who work in the Supply Chain operation and was linked to the introduction of a new annual bonus scheme.
Secondly, the bonus scheme for Admin members had earlier this year moved from a quarterly scheme to an annual scheme based on the Balance Scorecard for 2011-2012. As negotiations at the time were ongoing, it was exceptionally agreed that Admin members would be paid £212.50 in July salaries in lieu of April-June quarter. This was communicated in July in the attached joint statement.
It should be noted that this £212.50 bonus payment was not paid to our members working in the Supply Chain operation.
In view of the confusion referred to above regarding when bonus payments will be made to Admin members, we have now agreed with POL a further one-off advance payment of £287.50 to be paid in December salaries to Admin members only. By combining the two payments – £212.50 paid in July and £287.50 payable in December – this will provide Admin members with a total of £500, and will ensure equity with the Supply Chain arrangements previously reported.
Once the £287.50 payment has been received, this will result in a total of £500 being paid, which will be netted off from the final bonus payment achieved at the end of the financial year. It should be remembered that the full bonus potential for the 2011/12 year is £850 (pro rata for part-timers). Therefore, please remember there is still a potential for a further £350 of bonus monies to be paid for on target performance.
The arrangements above bring our Admin members into line with their Supply Chain colleagues in respect of bonus monies received. Equally, the £500 payable to our Supply Chain members is also netted off from the overall bonus potential of £850.
Due to the confusion, I have also agreed a Joint Statement with POL, which is as follows:
“Joint Statement - Admin bonus payment
Further to the recent Joint Statement on the pay agreement for Supply Chain and Admin colleagues, we have received a few enquiries about the £500 bonus payment being made in December.
The Admin Colleague bonus is moving from a quarterly scheme to an annual scheme based on the business scorecards. A new bonus scheme has also been implemented for Supply Chain Colleagues.
In light of the confusion as to when payments would be made we have agreed that a payment will now be paid to Admin Colleagues in December’s salary.
As you are aware you were paid £212.50 in July this year, therefore you will receive an advance payment £287.50 in December making a total £500 any remaining bonus will be paid at the year end in the normal way.
Going forward future bonus payments will be made annually at the end of the bonus year based on the agreed criteria and rules of the scheme.
We hope you find this fair.
Matthew Starks Andy Furey HR Director Assistant Secretary”
I trust the above clarifies the matter and that our Admin members will be pleased to receive £287.50 in December salaries, ensuring there is parity going forward with their Supply Chain colleagues in respect of bonus money paid.
Any enquiries relating to this LTB should be addressed to cbowers@cwu.org
Yours sincerely
Andy Furey Assistant Secretary
LTB 1047/11 - Hired Vehicles in Royal Mail - Pre-Use Safety ChecksTo view this download, please click here
To: All Branches, As the Christmas Pressure period in Royal Mail progresses, Royal Mail expects to handle a total of around two billion items in the run up to Christmas, 130 million items daily. 5,000 Hired Vehicles are being used over and above the normal year round Official Red fleet of 33,000 vehicles.
CWU women working together for change8th December 2011
Debates covered a melting pot of industrial and gender issues affecting thousands of members across the UK, and conference heard from inspirational speakers including CWU general secretary Billy Hayes, veteran campaigner Margaret Handforth and Nan Sloane from the Centre for Women and Democracy. Women bearing the brunt "Violence against women persists" warned women's advisory committee (WAC) chair, Jackie Gatward, in her opening speech. "In the UK 20,000 women every week experience some form of domestic abuse and this increases when sporting events are on. This is a particular concern given the London Olympics next year" Jackie explained, emphasising that CWU continues to support women's charity EAVES which helps victims of domestic abuse.
Linda outlined inequalities facing women, saying: "Women and working mothers are bearing the brunt of the cuts, with more women retiring into poverty and losing their jobs. "The ConDems want to erode the Equality Act, erode our employment rights and reduce the minimum wage" explained Linda. "Under Labour many hundreds of thousands of women entered the labour market - under the ConDems women are losing their jobs."
Women's workplace issues The 23 motions debated covered a range of issues affecting women members, including difficulty in securing paid dependency leave, flexible working conditions, inadequacies with women's engineering uniforms, lack of toilet facilities, the dangers facing agency workers and the presence of women in trade unions and politics. Kicking off a topical debate on flexible working conditions and finding a balance between work and home life, Helen Ogilvie, WAC member of Scotland no. 2 branch said: "For many women with small children, flexible working can be the difference between keeping a job or not." Echoing these sentiments, delegate Jackie Stewarts highlighted the cases of three call centre workers who are finding it difficult to find the balance with changing shift patterns. In one case a mother who's just had her second child has been put on weekend and evening shift work, while another has been told she'll lose her job if she can't fit around her new shift times. "Women are being forced into part time work by unreasonable employers who refuse flexible working," explained Jackie. Women's health featured as a major concern for conference with Ruth Harris from Portsmouth moving motion 8 on the issue of long-term female fatigue. Speaking in support,Jennifer Banks - a postwoman from Bognor Regis - explained how she experienced extreme pain in her knees and wrists after delivery revisions were brought into her office. After speaking to her colleagues and doing some research she found that other health effects included shin splints, sore backs and depression with serious long-term side effects. Conference agreed that action was needed to raise awareness of these problems and to ensure that measures are put in place to protect people from these health problems.
"But compare this with field engineers and delivery posties and there are real problems - especially for women" she explained. Several speakers agreed, with one highlighting a recent case in her office where a delivery postwoman faced a criminal record after relieving herself in a bush while on delivery, with another speaker explaining the vast difference in facilities where they do exist, lacking bins and towels or not being cleaned. Conference decided that greater publicity is needed for the agreements that CWU has with employers to address the issue of access to toilet facilities as many women are unaware of their rights. Education and profile
Encouraged by the thirst for knowledge shown by the women around her, the Castleford Women's centre was born. Reminiscing, Margaret said: "I was a bit of a nut about it. We had 2,000 students a year and people were so hungry to learn - especially the women. We didn't want the kitchen sink back." After 22 years of running courses funded by the local authority, the college has now become the Castleford Community Learning Centre. Concluding, Margaret said: "I love to hear positive women. There's nothing that gives you more satisfaction than learning."
"Does it matter? Well, there are only five women Cabinet members - the highest was six in 1997 - and only 22 per cent of MPs are women. In management positions only primary school head teachers are majority women. So yes, we think it matters." Arguing the point that it is the system within which women are being asked to operate that is the problem, Nan urged delegates to facilitate change by getting involved, saying: "We want to change the system. We need to change the nature of politics."
For more images from the conference check out Linda Roy's blog - Equality for All. 6th December 2011 TO ALL BRANCHES WITH POSTAL MEMBERS
Dear Colleague
RE: Abolition of Default Retirement Age – Impact on MTSF
Further to LTB 826/2011 regarding the abolition of the default retirement age from 1st October 2011 and the implications for members reaching the age of 64½ in a VR situation we have now received correspondence which offers us a safeguard while discussions continue with Royal Mail.
Branches will be aware that a number of grievances have been submitted by members over the age of 64½ in surplus situations who have not been provided quotes for voluntary redundancy terms. A number of those grievances are now reaching stage 2 or stage 3 of the process. We can confirm that the business has now indicated that the opportunity to leave by way of voluntary redundancy will be reserved for people in this situation (provided they would otherwise be eligible) pending the outcome of future discussions. The same reserved position will apply to individuals who are interested in moving from full time to part time on buy down terms.
Branches should make all industrial representatives aware of these further developments.
Any enquiries should be addressed to Ray Ellis’s department, quoting reference PTC/MA/dj/035. Yours sincerely
Ray Ellis, Assistant Secretary
30th November 2011 Here is the Branch Supporting the TUC Day of Action on Pensions here in Hull City Centre today!
POL Admin/Supply Chain members back pay deal28th November 2011 Post Office Admin/Supply Chain workers will see their pay rise by nearly 10.5 per cent over the next three years after 93 per cent of them voted to back a new deal, which also brings new bonus payouts ranging from £700 to £900 each year.
POL /Supply Chain Pay Deal - Ballot Result!!! 31 October 2011
Mr Andy Furey CWU 150 The Broadway Wimbledon LONDON SW19 1RX
Dear Andy
Subject: - Admin and Supply Chain Pay Offer 2011 / 14
Further to our recent meetings. I am writing to confirm the details of the 2011 / 2014 pay offer for Post Office Ltd Admin and Supply Chain colleagues.
The offer applies to all CWU represented Admin and Supply Chain grades based in cash centres, depots, Head Office functions, P&BA, FSA’s, the Service Centre at Farnworth, the Inventory Teams and Swindon Stock Centre.
Although the Admin and Supply Chain communities have been discrete negotiations in the recent past, on this occasion we have agreed to your request to make this one negotiation. From a Supply Chain point of view we remain very much focused on making this a financially sustainable part of Post Office Ltd and we therefore believe that we would be better served pursuing our strategic agenda of efficiency and growth through a three year pay offer. As a consequence this is a three year pay offer for both communities, which is structured as follows: -
Admin – Pers Sec, CSA’s, FSA’s, and PO’s (Detail as outlined in Appendix A): -
A year one 3.30% consolidated pensionable increase; backdated to 1st April 2011, flowing through to overtime rates and allowances. With effect from 1st April 2012 a further consolidated pensionable increase of 3.50%, flowing through to overtime rates and allowances. With effect from 1st April 2013 a further consolidated pensionable increase of 3.25%, flowing through to overtime rates and allowances. London Weighting will increase by 1.4% in 11/12, by 3.5% in 12/13 and by 3.25% in 13/14. Annual bonus amounts, eligibility and payment arrangements remain unchanged for 11/12. For 12/13 and 13/14 the ‘on target’ potential will be uplifted to £880 and £900 respectively, with the exception of HRSC Admin grades whose bonus is already at a significantly higher level.
A year one consolidated pensionable increase of £14.00 per week; backdated to 1st April 2011; flowing through to overtime and allowances. With effect from 1st April 2012 a further consolidated pensionable increase of £14.00 per week; flowing through to overtime and allowances. With effect from 1st April 2013 a further consolidated pensionable increase of £14.00 per week; flowing through to overtime and allowances. London Weighting will increase by 1.4% in 11/12, by 3.5% in 12/13 and by 3.25% in 13/14. Annual bonus amounts, eligibility and payment arrangements remain unchanged for 11/12. For 12/13 and 13/14 the ‘on target’ potential will be uplifted to £880 and £900 respectively.
A year one 3.30% consolidated pensionable increase; backdated to 1st April 2011; flowing through to overtime and allowances. With effect from 1st April 2012 a further consolidated pensionable increase of 3.50%; flowing through to overtime and allowances. With effect from 1st April 2013 a further consolidated pensionable increase of 3.25%; flowing through to overtime and allowances. London Weighting will increase by 1.4% in 11/12, by 3.5% in 12/13 and by 3.25% in 13/14. From 1st April 2011 for Postal Officers, including PO reserve’s, whose entire duties take place between 19:00hrs and 07:15hrs a new grade Postal Officer – Night Worker will be created. Postal Officer colleagues meeting this criteria will be classed as permanent night workers and as a direct consequence Night Duty Allowance will be consolidated into basic pensionable pay. Postal Officer colleagues whose duties do not meet this criteria will continue to receive the appropriate amount of NDA as a pensionable allowance. With effect, from 1st April 2011 the CL5 grade, (within Supply Chain), will be removed with all existing CL5’s being regraded to Supply Chain Postal Officer grade. With effect from 1st April 2011 the £14.19 weekly non-pensionable allowance paid to SO1’s becomes pensionable. A self funded annual bonus scheme, agreed as part of the 10/11 Pay Deal, will be introduced and will be based on the Post Office scorecard in 11/12 and from 12/13 onwards; 50% Post Office scorecard / 50% Supply Chain scorecard. The scheme has a minimum ‘threshold of £425.00, an ‘on target’ potential of £850.00 per annum, and a ‘stretch’ potential of £1062.50, of which in 11/12 the first £425.00 is ‘guaranteed’. From 12/13 this non-pensionable payment will be paid annually in arrears at the earliest opportunity after the scorecards are finalised and the year end accounts are published. For 12/13 and 13/14 the ‘on target’ potential will be uplifted to £880 and £900 respectively. Exceptionally, for 11/12, £500 of the bonus will be paid in December salaries.
A year one consolidated pensionable increase of £14.00 per week; backdated to 1st April 2011; flowing through to overtime and allowances. With effect from 1st April 2012 a further consolidated pensionable increase of £14.00 per week; flowing through to overtime and allowances. With effect from 1st April 2013 a further consolidated pensionable increase of £14.00 per week; flowing through to overtime and allowances. London Weighting will increase by 1.4% in 11/12, by 3.5% in 12/13 and by 3.25% in 13/14. A self funded annual bonus scheme, agreed as part of the 10/11 Pay Deal, will be introduced and will be based on the Post Office scorecard in 11/12 and from 12/13 onwards; 50% Post Office scorecard / 50% Supply Chain scorecard. The scheme has a minimum ‘threshold of £350.00, an ‘on target’ potential of £700.00 per annum, and a ‘stretch’ potential of £875.00, of which in 11/12 the first £425.00 is ‘guaranteed’. From 12/13 this non-pensionable payment will be paid annually in arrears at the earliest opportunity after the scorecards are finalised and the year end accounts are published. For 12/13 and 13/14 the ‘on target’ potential will be uplifted to £730 and £750 respectively. Exceptionally, for 11/12, £500 of the bonus will be paid in December salaries. From 1st April 2011 for Postal Assistants, including PA reserve’s, whose entire duties take place between 19:00hrs and 07:15hrs a new grade Postal Assistant – Night Worker will be created. Postal Assistant colleagues, meeting the criteria, will be classed as permanent night workers and as a direct consequence Night Duty Allowance will be consolidated into basic pensionable pay. Postal Assistant colleagues whose duties do not meet the criteria will continue to receive the appropriate amount of NDA as a pensionable allowance.
A year one consolidated pensionable increase of £15.00 per week; backdated to 1st April 2011; flowing through to overtime and allowances. With effect from 1st April 2012 a further consolidated pensionable increase of £15.00 per week; flowing through to overtime and allowances. With effect from 1st April 2013 a further consolidated pensionable increase of £15.00 per week; flowing through to overtime and allowances. London Weighting will increase by 1.4% in 11/12, by 3.5% in 12/13 and by 3.25% in 13/14. With effect from 1st April 2011 the CViT skills allowance, for servicing ATM’s, using CAT VIII’s in single person mode and for driving LGV’s will increase from £8.64 to £13.42 per day, (based upon a 5 day week duty), £16.78 per day (based upon a 4 day week duty) and £22.37 per day (based upon a 3 day week duty). Ad-hoc payments will reflect the duty being covered, i.e. 3, 4, or 5 day duty. A self funded annual bonus scheme, agreed as part of the 10/11 Pay Deal, will be introduced and will be based on the Post Office scorecard in 11/12 and from 12/13 onwards; 50% Post Office scorecard / 50% Supply Chain scorecard. The scheme has a minimum ‘threshold of £425.00, an ‘on target’ potential of £850.00 per annum, and a ‘stretch’ potential of £1062.50, of which in 11/12 the first £425.00 is ‘guaranteed’. From 12/13 this non-pensionable payment will be paid annually in arrears at the earliest opportunity after the scorecards are finalised and the year end accounts are published. For 12/13 and 13/14 the ‘on target’ potential will be uplifted to £880 and £900 respectively. Exceptionally, for 11/12, £500 of the bonus will be paid in December salaries.
Yours sincerely
Matthew Starks HR Director Post Office Limited
Appendix A
Admin Grades - Pers Sec, CSA’s, FSA’s, and PO’s
Appendix B
Admin Grades – Postal Assistants
Admin Grades - Pers Sec, CSA’s, FSA’s, and PO’s Appendix C
Supply Chain – CL5’s, LA1’s, PO’s and SO1’s
Appendix D
Supply Chain - Postal Assistant’s & Postal Assistant – Night Worker
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The union's national health, safety and environment officer Dave Joyce said: "This week's activities are part of a European-wide initiative lead by 
On the 26th November over one hundred delegates - new and seasoned - from 77 CWU branches converged on the grand Leeds City Council chamber to take part in the annual CWU Women's conference.
CWU national equality officer, Linda Roy (pictured with Leeds city councillor Asqhar Khan on the left and CWU general secretary Billy Hayes on the right), praised progress within CWU on gender equality, explaining that "for the first time in our history we have a woman president and vice president."
In his speech to conference, CWU general secretary,Billy Hayes, said: "The need for women trade unionists is greater than ever. Dave Prentis has said the public sector strike on November 30 is a women's strike. With 1.9million women out of the workforce and the average pension of low paid women council workers at £2,800 a year it's incredible that David Cameron is wondering why support from women is slipping away. We have to give the lie to the message there is no alternative to austerity. We must press for investment not cuts."
In moving motion 9 on toilet facilities,Sandy Best from the South West region explained that when at home or in workplaces like call centres and offices it is not something we think about: "It's something we all have to do", she said.
Guest speaker Margaret Handforthcaptivated delegates with her inspirational tale. A mother-of-three and wife to husband Alf, a miner at the Kellingley colliery in West Yorkshire, Margaret thought she had retired from the world of work for good but the national miners' strike came along and changed her life forever. Playing a pivotal role in the 'women against pit closures' campaigns, organising fundraising and awareness events, Margaret noticed that "education was the thing that women really wanted."
Outlining the work carried out by the Centre for Women and Democracy (CWD), second guest speaker Nan Sloane told conference: "Women make up 52 per cent of the population but not 52 per cent of decision makers, which is why the CWD looks at the roles of women in public life.
Conference carried 19 of the 23 motions and two - on flexible working and workplace rights - will be put forward to CWU General Conference in April 2012.
CWU assistant secretary Andy Furey, who led negotiations for the 1,400 members affected, said that he was "delighted that our members backed this deal by such an overwhelming margin.