Royal Mail Sets Out Vision For Future Working – updated

Royal Mail has set out its plan for the future in its 'full and final offer' to its workers and is pressing on with change whether in total agreement with the CWU or not.

It emphasizes the need to be flexible and the way in which employees presently work has to change and goes on to say that Royal Mail and CWU have agree that in order to achieve these aims an unprecedented focus is required on driving up the efficiency of the operation and the productivity of its people.

Night shifts are to be removed from all mail centers with the exception of busy city centre units. Delivery times are to be pushed back in step with legislative change to 7.5 T vehicle maximum speeds on 7.5 ton trucks. Weekend working at premium rates is to be cut back drastically. Seasonal changes will also be taken into account allowing greater flexibility for holidays but staff will be expected to cover other duties as required. Door to door products are to be increased from 3 to 5 items but payment for these capped at 3.

Pay is still up for discussion but put forward to the CWU so far is:

1 YEAR DEAL

– 3 pct increase, backdated to 2 April 2007. However, 0.5 pct of this rise is funded from the distribution of ESOS monies, and will no longer be paid after 1 April 2008.
(So it's a 3 pct rise that actually goes DOWN to 2.5 pct after 12 months)
– Dividend of GBP 800, dependant on "on target" financial performance for 2007/2008
– 50-50 share of savings for better-than-budget performance
– Conditional on ALL of the proposed changes – including those on the most contentious issues such as pensions, flexible working etc – being implemented

2 YEAR DEAL

First year:
– 3 pct increase, backdated to 2 April 2007. However, 0.5 pct of this rise is funded from the distribution of ESOS monies, and will no longer be paid after 1 April 2008.
(So it's a 3 pct rise that actually goes DOWN to 2.5 pct after 12 months)
– Dividend of GBP 800, dependant on "on target" financial performance for 2007/2008
– 50-50 share of savings for better-than-budget performance

Second year:
– 2.7 pct increase from 7 April 2008
– Dividend of GBP 400, dependant on "on target" financial performance for 2008/2009
– 50-50 share of savings for better-than-budget performance
– Further 1.5 pct increase only when ALL of the proposed changes including those on the most contentious issues such as pensions, flexible working etc are implemented
Next pay review date to be 1 April 2010 (in effect, a pay-freeze for twelve months, as no annual pay review on 1 April 2009)

18-MONTH DEAL

– Dividend of GBP 800, dependant on "on target" financial performance for 2007/2008
– Dividend of GBP 400, dependant on "on target" financial performance for 2008/2009
– 50-50 share of savings for better-than-budget performance, and
– pay increases only when ALL of the proposed changes including those on the most contentious issues such as pensions, flexible working etc are implemented, paid via one of the following methods…

– GBP 350 lump sum + 3 pct increase from October 2007, then a 3.7 pct increase in April 2008
or
– GBP 300 lump sum + 3.5 pct increase from October 2007, then a 3.2 pct increase in April 2008
or
– GBP 250 lump sum + 4 pct increase from October 2007, then a 2.7 pct increase in April 2008
or
– GBP 195 lump sum + 4.5 pct increase from October 2007, then a 2.2 pct increase in April 2008
or
– GBP 150 lump sum + 5 pct increase from October 2007, then a 1.7 pct increase in April 2008