Royal Mail – pension deal is best we can offer (UK)
The Communication Workers Union and Royal Mail are still in disagreement over plans to introduce reforms to the pension scheme on April 1st 2008.
Royal Mail says that the increasing cost of maintaining the pension fund comes as the business faces intensifying competition in the open postal market with one in five of all letters now collected by rival companies, while mail volumes continue to fall and electronic communications increase. Royal Mail is currently making annual payments of around GBP 850 million to cover both ongoing contributions and the funding of the pension fund deficit
The CWU, in a letter to union representatives, said that it recognised that there is strong opposition to ending the Final Salary Scheme and to moving retirement to age 65.
The CWU said it was committed to listening to the views expressed during the consultation and that Royal Mail had moved ahead with a change to the pension scheme without allowing a proper consultation and ballot to take place. On that basis it would recommend that Royal Mail’s plans be rejected.
The union is asking the government and Trustees to “find alternative and more acceptable solutions.”
It also said that if Royal Mail secure agreement from the Trustees it is likely that Royal Mail would proceed with its decision from the 1st April, in which case, if CWU members supported a rejection of the company’s plans in the Consultative Ballot, the CWU would intensify its campaign.
No mention was made of industrial action or an alternative proposal, other than that one should be sought. The union insisted that any changes introduced by Royal Mail were reversible.
The Communication Workers Union and Royal Mail are still in disagreement over plans to introduce reforms to the pension scheme on April 1st 2008.
Royal Mail says that the increasing cost of maintaining the pension fund comes as the business faces intensifying competition in the open postal market with one in five of all letters now collected by rival companies, while mail volumes continue to fall and electronic communications increase. Royal Mail is currently making annual payments of around GBP 850 million to cover both ongoing contributions and the funding of the pension fund deficit
The CWU, in a letter to union representatives, said that it recognised that there is strong opposition to ending the Final Salary Scheme and to moving retirement to age 65.
The CWU said it was committed to listening to the views expressed during the consultation and that Royal Mail had moved ahead with a change to the pension scheme without allowing a proper consultation and ballot to take place. On that basis it would recommend that Royal Mail’s plans be rejected.
The union is asking the government and Trustees to “find alternative and more acceptable solutions.”
It also said that if Royal Mail secure agreement from the Trustees it is likely that Royal Mail would proceed with its decision from the 1st April, in which case, if CWU members supported a rejection of the company’s plans in the Consultative Ballot, the CWU would intensify its campaign.
No mention was made of industrial action or an alternative proposal, other than that one should be sought. The union insisted that any changes introduced by Royal Mail were reversible.
However, Jon Millidge, Royal Mail’s Interim Group HR Director, said: “Funding the pension plan is a huge challenge because of increasing longevity and the higher costs of providing a pension plan but Royal Mail is determined to ensure postmen and women get the best possible pension plan that the company can afford. We already have signed, written agreements with the CWU and Unite which cover pay, flexibility and support for our pension reform, which we fully expect them to honour. The CWU agreement was facilitated by Brendan Barber, General Secretary of the TUC.”
He stressed: “These changes have only been decided after very lengthy discussions with the unions – the CWU and Unite – and after taking careful account of the views expressed by individual employee members of the fund. We first announced our intention to consult on changes 12 months ago and the length of time taken to reach a decision underlines the importance Royal Mail attached to engaging its people in a full discussion of all the options available.”
