No. 113/2015
Ref: PTC/RE/dj/020
Date: 19 February 2015
TO ALL BRANCHES WITH POSTAL MEMBERS
Dear Colleague
RE: Voluntary Redundancy Offers in Royal Mail
Branches will be aware that Royal Mail has carried out a scoping exercise and in association with this managers have told employees that VR terms, enhanced by pay in lieu of notice, will be available for people who accept redundancy in this financial year.
It is our view that in some locations this has led to a breach of the agreed MTSF processes, which require the business to notify the union if it believes a surplus exists, requires agreement as to the size of surplus, the redeployment unit and the measures to be used to resolve any surplus. In this case, in a drive to reduce headcount before the end of the financial year the business has “put the cart before the horse” by initially suggesting that voluntary redundancy is available before any discussion with CWU.
The union has made it clear that it regards this as a serious breach of the spirit of the Agenda for Growth agreement which is damaging to the efforts both parties have made to improve industrial relations since Agenda for Growth was agreed. As a result urgent discussions have taken place to seek to ensure that there is proper discussion and agreement at the right level before any redundancy exercise and the attached statement has been agreed.
It is clear that in some offices the reduction in workload may mean that a potential surplus exists – particularly in areas impacted by Whistl and Amazon Direct Delivery, or where it is some years since a revision has taken place. However any gap in workload will need to be identified and agreed between Management and the CWU. In these circumstances, there may be some scope for voluntary redundancies, where agreed, in advance of any formal revision activity.
The statement clarifies the process which must now be followed:
• In line with the national Joint Statement on growth, efficiency and incentives, before voluntary redundancy can be approved both parties must agree that the removal of a role(s) can be dealt with in terms of workload. This requires the parties to have reached agreement on how workload will be managed going forward.
• An offer of voluntary redundancy will only be made after agreement has been reached with the appropriate CWU representative and signed off at area level as to how the work will be dealt with.
• The process will be jointly overseen at Divisional level.
• If this process has been completed Royal Mail has advised CWU that it is prepared to exceptionally offer pay in lieu of notice for those employees in CWU represented grades to accept voluntary redundancy before 27 March 2015 and whose last day of service is before the end of April 2015.
Any reduction in hours agreed as part of this process will count towards the unit’s subsequent revision, agreed as part of the categorisation process and revision programme determined in line with the national joint statement CWU/Royal Mail approach to delivery revision 2015/16. This does not apply to any outstanding BT 2010 Delivery Methods Revisions.
To summarise, whilst the Union recognises that some Surpluses will be inevitable, particularly as a result of loss of work to direct delivery competition, we need to be clear in all cases that this can only be by agreement and our primary objective must be to ensure, in line with National Agreements, that remaining employees have a fair and manageable workload.
Any enquiries on VR/MTSF processes should be addressed to Ray Ellis’s department,
enquiries specific to ongoing revision activity to the relevant National Officers.
Yours sincerely
Ray Ellis Dave Ward
Assistant SecretaryDeputy General Secretary (Postal)
Bob Gibson Terry Pullinger
Assistant SecretaryAssistant Secretary
Voluntary Redundancies/Pay In Lieu Of Notice
The business has stated that it is in their best interest to offer VR in this financial year where it is possible and practical to do so. It is therefore the intention of the company to exceptionally offer pay in lieu of notice for those employees in CWU represented grades.
It is recognised that in some circumstances an individual’s last day of service may be after 27th March 2015.Where this is the case and providing the number of VR’s have been agreed by this date, with the employee accepting to leave before the end of April 2015 , pay in lieu of notice will be offered.
Discussions will take place to identify any workload gap and potential for VRs in advance of formal revision or unit led activity. In line with the national joint statement a balanced approach to growth, efficiency and incentives, in order for VR to be approved both parties need to be satisfied that the removal of the role can be dealt with in terms of the workload. Royal Mail’s process is to make an offer of VR after agreement has been reached with the appropriate CWU representative and signed off at area level as to how the work will be dealt with after the individual has left. The process will be jointly overseen at Divisional / Regional level to ensure completion on a fair and timely basis. Both parties accept that this may not be the final number for a unit but a manageable number at this point in time.
Any reduction in hours agreed as part of this process will count towards the unit’s subsequent revision, agreed as part of the categorisation process and revision programme determined in line with the national joint statement CWU/Royal Mail approach to delivery revision 2015/16. This final section does not apply to any outstanding BT 2010 Delivery Methods Revisions.
Mike NewbyRay Ellis
ER/IR DirectorAssistant Secretary
18 February 2015
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