On the 5th November 2009 the Postal Executive endorsed the Interim Agreement, which suspended the national dispute and engaged both parties in an independent process for detailed negotiations over the future of the company.

We have now successfully negotiated an agreement entitled ‘Business Transformation 2010 and Beyond’ which is the culmination of 3 months detailed negotiations with the company. A copy of the agreement is attached to this LTB and should be supplied in hard copy to all representatives, including those attending this week’s National Briefing. A final version is likely to include some presentational enhancements.

The agreement represents a major step forward for the Union and its membership and secures a number of significant achievements directly related to last year’s national dispute.

Crucially, the proposed agreement enables change to be managed through properly negotiated terms with full CWU involvement and improved job security and benefits for CWU members.

The agreement was overwhelmingly endorsed by the Postal Executive on Friday 5th March. However, prior to the agreement being placed before the membership via an individual member ballot, the Union is determined to address the pensions issue and establish whether the Government will now finally accept its responsibilities, as the owner of the company, to find an acceptable solution. We will also be discussing today two amendments which have been shared with Royal Mail. Although these amendments do not alter the substance of the agreement, one of them involves ensuring the integrity of the interim agreement is maintained.

In considering the agreement, we have always said we cannot face away from change – none of us can. The agreement recognises the reality of automation, competition and the financial challenges facing the company – but it does so in a way that puts the interests of CWU members at its heart.

Fundamental to this agreement is a recognition from CWU that the communications industry is rapidly changing and that only by quickly embracing radical change and working together with Royal Mail will we secure the future for our members, customers and the company.

The following represents key points from the agreement in the order they appear:-

Modernisation – A Shared Vision

We now have a shared vision of modernisation with powerful statements covering customers, employees and the future ambitions of the company. Importantly, Royal Mail has agreed that the vision statement also defines the overall objectives of the agreement. This will hold us in good stead for the future.

Transforming Relationships

The prominence of this section of the document cannot be overstated. Both parties accept that unless there is a radical improvement in relationships at all levels, we cannot succeed. We now have a commitment to a new culture, where we identify common objectives, align interests and always seek mutually acceptable solutions to the challenges we face.

We have agreed principles that define the new culture and a programme of activity that will ensure it is embedded throughout the organisation.

Royal Mail has given an unequivocal commitment that CWU will be able to shape and influence key business policies before decisions are made. We will utilise the platform of a new relationship to restructure the Union in a way that ensures future Union finances can meet the priorities of the Postal Department.

Job Security/Managing the Change

We have strengthened our existing Job Security Agreement and have secured an unequivocal commitment that the overarching objective is to complete transformation without recourse to compulsory redundancies.

Unlike most other worldwide postal administrations, who introduced the same machinery alongside a part time resourcing model, we have secured an unequivocal commitment to transformation being completed in 2013 with a 75% full time and 25% part time split.

We all know that the introduction of new machinery will bring about job losses. However, the negotiated package includes elements which will help offset these job losses and protect jobs in the future. This includes Door to Door now becoming part of measured workload, a shorter working week and strong commitments by the business to develop specific new products and services which will help grow jobs. It is important that our representatives utilise the terms of the agreement to minimise job losses in their local discussions.

The Job Security section also confirms that existing full time employees will retain full time status similarly part time employees will be entitled to retain their existing hours if they wish through transformation.

MTSF

A number of significant improvements have been achieved to the existing MTSF agreement.

Excess Travel Expenses (Royal Mail Letters only)

Ø The cap on payments is raised from £15,000 to £20,000.

Ø For journeys with an annual cost of more than £1,250 the period of payment is extended to 5 years, the first three on the current basis (cost x 2); the fourth cost x 1 and the final year cost x 0.5.

Relocation (Royal Mail Letters only)

Ø Relocation terms will be automatically available where cost does not exceed average cost of ETE for the unit.

EVR (Group wide)

Ø Changes to Inland Revenue rules mean that those under 55 will not be able to leave with immediate payment of pension after April 2010. For those aged 55 – 60 current EVR terms will be available uncapped until October 2010. From that date pension enhancement will be based on a 37.5% of maximum potential service and EVR terms will be available uncapped to those aged over 55, until April 2013.

Ø From October selection for redundancy will solely be in seniority order – the age criterion is scrapped.

Terms will be reviewed in October 2012 based on the financial position of the business and the progress of transformation.

Generic Operational Transformation

The introduction of new machinery means there will be a standardised 6 day work plan, alongside changes in attendance times including later Saturdays. However, we have built in safeguards to ensure we can review the work plan in practice to enable other important principles, including innovative attendance patterns with more Saturdays off to be delivered at local level.

The agreement ensures we are now able to place the CWU right at the centre of developing and influencing the World Class Mail Project. This will be achieved through effective involvement forums at all levels. Royal Mail has accepted any issues affecting employee terms and conditions will be subject to our normal negotiation procedures.

On future productivity we are now able to directly influence the company’s benchmarking approach. This will help us understand why there is a broad range of performance and take appropriate action.

Delivery

The Delivery section has achieved the following:-

• Long standing conference policy removal of private cars on delivery confirmed.

• Achievement of conference policy removal of weight off the shoulder.

• Achievement of conference policy Door to Door into workload plus retention of the remuneration.

• A revised revision process that involves the CWU from start to finish which was one of the fundamental issues of the national dispute.

• A firm commitment from the business to a minimum of one in four Saturdays off.

• The establishment of a national review group overseeing Door to Door.

• Joint Workshops to determine and communicate work measurement and performance standards and the agreement of the revision tools which is another issue which was at the heart of the dispute.

• Strongest ever words on innovative duty patterns with built in review and support.

Mail Centres

• We have secured a comprehensive involvement process that ensures the National Union can influence the mail centre strategy going forward. The agreement covers a 3 year period, which will provide the opportunity for CWU to further review mail centres strategy given that the rationalisation programme is likely to take 5 years.

• There is a structured process at Divisional, Regional and Area level to deal with proposed closures. This provides the opportunity for the Union to influence the options under consideration.

• The agreement includes improved arrangements and terms to deal with the impact any closures will have on CWU members.

Network

• We have secured a robust Framework which reaffirms the ability of the Union to fully influence the shape and nature of change in Network. This will be supported by the establishment of new consultation and negotiation structures and agreed criteria for site rationalisation.

• We have secured a number of longstanding goals, including agreed terms and procedures for MVOS employees and a review of RDC performance/productivity payments.

We have established further negotiations on a progressive agenda which will include discussions on terms and conditions and reward on issues not covered by the agreement. Yearly national Network reviews will be fully negotiated and agreed.

Engineering Grades

• Royal Mail reaffirms the role of its in-house engineering workforce.

• There is a new workload measurement system allowing a degree of local negotiation.

• There is a new Engineering Team Coach job, aligned to the operational shift. This is a new job with a higher rate of pay – the rest of the Engineering Team will remain on rotational shifts.

• The agreement provides a framework for maintenance of equipment outside the Mail Centre.

• There is a commitment to a program of training and professional development.

Fleet and Maintenance Services

• We have secured commitment to joint negotiations and a framework for the deployment of change which reaffirms the ability of the Union to influence the shape and nature of change in Fleet and Maintenance Services.

• Both parties have committed to a review of every aspect of Fleet and Maintenance Services operation including workshop utilisation, shift patterns and duty content, expanded role of CSVs, role of third party contractors, garage network rationalisation and performance management and productivity. It is affirmed that change will be by negotiation and agreement.

Minority Grades

We have secured extensive arrangements covering how change will affect all minority grades. We have also ensured that minority grades, including LA’s receive the same value in the reward package.

Reward

At a time when the company is uncertain about the future and faces unprecedented challenges, including volume decline, we have secured the stability of a 3 year reward package. The terms on offer will outstrip Government public sector pay policy and the trend that exists in virtually all major external companies due to the impact of recession.

The terms on offer include:-

- 6.9% (over 7% taking into account the compound effect) increase in basic pensionable pay flowing through to everything.

- Through pay simplification we have consolidated existing monies and created new additional and permanent (non pensionable) basic pay supplements, which will rise in value in future pay rises and be paid 52 weeks per year. This will ensure the Union continues to prioritise higher guaranteed pay.

- The first reduction in working hours since 2000. When benchmarked with external companies the hour reduction places Royal Mail workers very favourably and up with the best in the UK in terms of the length of the working week. Although the reduction is on gross hours, in net terms it will mean delivery employees are working 35 hours 40 minutes per week and mail centre employees below 35 hours due to relaxation allowances.

- We have increased paid maternity leave from 18 weeks to 26 weeks and paid paternity leave from 1 week to 2 weeks.

- Overall cash lump sums on offer through the course of the agreement, linked to transformation, are likely to exceed £2,500. This includes an enhanced approach to colleagueshare.

- The opportunity for local units to negotiate additional earnings packages through regular SA and overtime in conjunction with innovative attendance patterns.

Deploying the Agreement

We have agreed a completely fresh approach on how the agreement will be deployed. This includes greater support for local representatives and will ensure the focus is on joint problem solving and practical solutions rather than disagreement, imposition and industrial action.

Reviewing the Agreement

In order to build trust Royal Mail has agreed to continue with the independent involvement of Roger Poole and the Chief Conciliator of ACAS. We will all recognise that their involvement has served us well and places a very strong discipline on both parties to honour the agreement. We would also like to place on record our thanks to Roger Poole and Peter Harwood, Chief Conciliator of ACAS for their assistance to date.

Communications

The Union is putting in place a substantial communications plan which will cover a National Briefing, meetings and individual member communications.

We will outline a provisional ballot timetable this week, which will be confirmed following the outcome of our discussions with Government and Royal Mail on pension issues.

Pensions

The Postal Executive are fully aware that unless we identify a Government led solution to pension problems, then the company still faces huge financial challenges and CWU members could face the prospect of a further attack on their pension entitlements.

To counter this, the Union has continued to campaign for the Government to face up to its responsibilities and put in place a solution that can secure the future. In recent weeks the Union has published our policy paper and has continued to meet senior politicians, the trustees and Royal Mail.

Previously, the Government has made it clear that a modernisation agreement is the key enabler to them taking appropriate action. Now we have secured an agreement it is essential that we discuss the matter further with the Government and Royal Mail before confirming a ballot timetable on the agreement.

Summary

By any standard the proposed ‘Business Transformation 2010 and Beyond Agreement’ is comprehensive and covers virtually every aspect of change. It provides the Union with the best opportunity to be fully involved at every stage and at every level of our organisation. We can justifiably state that we have delivered on the commitments we made at the start of the national dispute. Whilst some of the changes in the proposed agreement will not be popular – everybody knows they are unavoidable with or without an agreement.

We believe CWU members will recognise that we can no longer face away from change and that modernisation is a necessity if we want Royal Mail to survive and prosper in a rapidly changing communications industry.

We also believe that CWU members will appreciate the benefits that can be derived from this agreement set against what they know is happening everywhere in the current external environment.

We recognise there will be doubts in the field, from both parties, over the major commitment to forge a new relationship and build a new culture of mutual interest across the organisation. However, we genuinely believe that the company are serious about moving our relationship forward and we are confident that with the continued assistance of Roger Poole and ACAS a new relationship will be delivered at all levels.

It is important that Branches give full consideration to the comprehensive nature of the agreement and recognise that the context the business now operates within is unprecedented. Given where we started from, we believe we have now reached an agreement that is worthy of support from all Branches and CWU members.

The full agreement can be download from out downloads section or click Business Transformation - 2010 and Beyond (1)

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1. Interim Agreement 2009
2. UPDATE ON ROYAL MAIL NEGOTIATIONS 6th Feb
3. CWU Urges Royal Mail to Negotiate as Mail Backlog Hits Record High

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The progress of the Digital Britain report and the CWU’s response to the recent announcement of the Conservative party’s plan to deliver a universal broadband service. Orange look to close it’s Bristol call centre. CWU secure record payout for post worker attacked by a dangerous dog and look to secure Gordon Brown’s backing to their campaign to amend the Dangerous Dogs act. And the CWU continue their environmental initiatives by helping to launch the Climate Solidarity initiative with funding from DEFRA.

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In 2004 and again in 2005, Dispatches went undercover to investigate the Royal Mail. These reports exposed serious systemic and individual failures within the organisation, resulting in an enquiry by the postal regulator, followed by a fine of almost ten million pounds. Five years on, the Royal Mail claims it is modernising and improving its service.

The reporters find an antiquated system with lax security, poorly trained agency workers – many of whom are clearly not up to the job – damaged and defective equipment and allegations of stealing.

Out on their rounds, they are bombarded with complaints from angry members of the public who have experienced damaged mail, delays and poor service, and behind the scenes some managers and workers express contempt for the customer and their concerns.

Joining just before the busy Christmas period, when an industrial truce has been publicly announced by both management and the unions, both reporters find that normal service is far from being resumed. Managers tell the reporters that disputes with unions over working times and the size of postmen’s rounds are causing continued disruptions to the service.

With over four million pounds a year being paid in compensation to customers for lost post and a recent dip in Royal Mail’s delivery performance, Dispatches asks if the organisation is fit for purpose.

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3. Adam Crozier – Chief Executive, Royal Mail

We understand that CWU members will be concerned about the lack of detailed information and how long talks are taking.

However, the length of negotiations really does reflect the fact that the scale of change involved and the challenges that lie ahead are unprecedented.

Furthermore, whilst we would like to provide more detailed information, the negotiations are taking place under the auspices of an independent chair with the support of ACAS and all parties agreed to retain confidentiality. Despite this we believe it is important to remind everybody what we set out to achieve.

The CWU has consistently stated that we cannot afford to face away from change – but that change must be introduced through negotiation and in a way that aligns the interests of customers, the workforce and the company as a whole. We set out our key objectives as follows:

• The need to reach an agreement covering all aspects of operational change, the introduction of new machinery/new technology and how this affects jobs.

• The need to reach an agreement that ensures we protect as many jobs as possible -with no compulsory redundancies – alongside a package of measures that will provide greater long term job security.

• The need to reach an agreement that provides an improved benefits package covering higher basic pay, overall earnings opportunities, a shorter working week and family friendly policies.

• The need to reach an agreement that will fundamental improve industrial and employee relations.

• The need to reach an agreement that will ensure future workload is based on fair, objective and transparent measurement systems.

We must also recognise that our aspirations are set against the environment the business now operates within and the company’s own objectives, which include the introducing of a standarised six day work plan.

The current position is that whilst there are a few of major issues to finalise, we have made real progress and we want to conclude an agreement very soon and communicate in more detail. At the same time we continue to pursue a pensions resolution through all available channels.

A further update will be provided in due course.

Yours sincerely

Dave Ward

Deputy General Secretary (P)

Related posts:

1. Royal Mail Dispute – Update on Negotiations
2. Royal Mail Transformation Progress Report
3. CWU Urges Royal Mail to Negotiate as Mail Backlog Hits Record High

Royal Mail Group News Release

ADAM CROZIER TO LEAVE ROYAL MAIL LATER THIS YEAR TO JOIN ITV

Royal Mail today announced that Adam Crozier, Group Chief Executive, will be leaving Royal Mail later this year to take up the post of Chief Executive of ITV.

Royal Mail Chairman Donald Brydon said: “Adam has done and continues to do a remarkable job in leading Royal Mail through a major transformation in extremely difficult market circumstances. The Group benefits from his strong leadership and commitment to ensuring that Royal Mail has the strength and profitability to continue to support the Universal Service and to build the platform for our future growth.

“Adam remains as Chief Executive of Royal Mail for the next few months and during that time I will continue to work closely with him to ensure that our momentum is maintained right across the Group and to ensure a smooth transition to his successor.”

Royal Mail will make a further announcement in due course.

CWU Says Public Service Ethos Key for Royal Mail

Responding to the announcement that Royal Mail’s Chief Executive Adam Crozier is to quit the company, the Communication Workers Union says that his replacement must have a strong public service ethos.

Billy Hayes, CWU general secretary, said: “What Royal Mail needs is a Chief Executive who is committed to a public service ethos.

“It’s crucial now that Adam Crozier’s final days at Royal Mail secure an agreement on modernisation that provides a successful future for the company, its workforce and customers.”

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1. UPDATE ON ROYAL MAIL NEGOTIATIONS 6th Feb
2. CWU Offers Peace Deal to Royal Mail
3. Dispatches

Image via Wikipedia

National Negotiations – Future of Royal Mail

It has been agreed to extend talks into next week on the basis of progress made and the recognition of the crucial importance this set of negotiations will have on the future of Royal Mail.

Please find below a communication from Roger Poole, the Independent Chair confirming this position. Further information will be sent out in due course.

Message From Roger Poole, Independent Chair

Royal Mail and the CWU continue to make good progress in what are very complex and wide ranging negotiations concerning the whole Letters business.

We will also soon be approaching the stage of negotiations where parties will need to report back and consult with their constituencies.

Further negotiations will take place next week. Both parties are still committed to achieving an agreement which will enable Royal Mail and its employees to secure a better future for everybody in the organisation.

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1. Royal Mail Dispute – Update on Negotiations
2. UPDATE ON ROYAL MAIL NEGOTIATIONS 6th Feb
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Image via Wikipedia

A postwoman who was left scarred for life after a vicious dog attack has been awarded £70,000 in compensation.

She was delivering post to a farm in February 2007 when a German Shepherd dog attacked her.

The dog attempted to bite her face but when she protected herself, she suffered severe injuries, her ring finger being almost completely torn off by the animal.

The victim – a CWU member who does not wish to be identified – recalled that both her and her colleagues had feared that the dog could, potentially be dangerous. “It was usually on a leash but even then, we always said that if it ever managed to escape, it could kill us,” she explained.

“As the dog jumped over the gate and headed towards me growling and snarling I honestly thought that was it for me.”

According to NHS statistics, the number of dog attack victims attending hospital emergency departments after a dog attack has risen by more than 40 per cent in the past four years and the CWU estimates that some 6,000 of these are postal workers attacked in the course of their duties.

The postwoman’s injuries were so severe that she had to be transferred from her local hospital to receive specialist plastic surgery.

“Luckily my hand looks ok now,” she pointed out, “but I’ll never be able to bend my finger properly and it is also difficult to grip with it.”

Unusually, the dog was not destroyed after the attack – something which the victim is extremely concerned about.

“I can’t bear to imagine what would have happened if it had been a mother and child that day,” she added.

CWU national health, safety and environment officer Dave Joyce welcomed the compensation figure, which was part of an out-of-court settlement reached between both parties, but insisted: “It’s clear that this dog was a menace and preventative action should have been taken prior to this horrific attack.

“Whilst welcoming this significant victory in relation to personal injury compensation, it does emphasise the importance of the ongoing CWU Biteback campaign which continues to fight for tougher laws to protect postal and other workers and members of the public from dangerous dogs.

“There must be changes in the law and the Dangerous Dogs Act 1991 must be amended so that it is the behaviour of dogs, rather than a particular breed, that is punished,” Dave urged, adding:

“It is the deed, not the breed.”

The CWU, along with a broad and growing coalition of organisations and individuals, is campaigning for new laws giving the police and local authorities the power to issue control orders – “Dog ASBOs” – on owners of dogs that are a threat before an attack takes place.

And, in another key reform, the union wants all workers to be given full legal protections if they are attacked on private property while carrying out their duties.

Nagam Din, of solicitors Simpson Millar, represented the postwoman and advises a growing number of clients who have suffered dog bite attacks.

“We deal with hundreds of dog bite injury claims ever year and recently we have seen some particularly horrific cases with very tragic outcomes,” said Ms Din, adding: “These cases could have been avoided if the owners had acted responsibly.”

And Ms Din agrees with the CWU that legal changes are urgently needed. “A tightening of the rules governing animal ownership would be welcomed and highly appropriate given the number of injuries sustained each year,” she said.

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Royal Mail Transformation Progress Report on Negotiations.

Intensive negotiations have taken place since my last report. Groups covering Delivery, Processing, Network, RDCs, MDEC, Fleet and Maintenance Services and Engineering have all been meeting to discuss key topics and reach agreements on a complex and wide-ranging set of issues.Talks have also commenced about Reward with useful meetings taking place to negotiate and agree a new employee reward package.A separate group has also been looking at how a final agreement will be deployed.

We have made good progress and many issues are agreed in principle, although there are some important issues still to be agreed.

All agreements in principle are of course subject to what the final overall agreement looks like.

Acas and I have been helping as necessary and have been encouraged by the constructive approach which both management and the union are taking towards the talks. At local level, review negotiations continue and good progress has been made with 411 out of 764 now concluded with agreements reached. The timescale we were set by the interim agreement was always going to be a challenging one. The priority has to be to reach good agreements which stick rather than quick agreements which unravel when implemented so we have allowed ourselves a short extension of the talks into the New Year.

We will next meet formally on Tuesday 5 January and redouble our efforts to conclude an agreement by 22 January Groups may well be swapping drafts over the break but I hope they will all find time for a well-earned rest. I wish them and you seasons greetings and best wishes for 2010. Roger Poole Independent Person

Related posts:

1. Royal Mail Dispute – Update on Negotiations
2. UPDATE ON ROYAL MAIL NEGOTIATIONS 6th Feb
3. CWU Offers Peace Deal to Royal Mail

On the sofa with Emma this month are CWU Deputy General Secretary Telecoms, Andy Kerr and CWU National Organising Secretary, John East. We also take a look at a round up of the top news from the CWU this month.

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