RE: MTSF Review
Talks have commenced on the review of elements of the MTSF agreement originally agreed as part of Business Transformation 2010 and subsequently deferred until May 2015.
Two elements of the MTSF section of the Business Transformation Agreement of 2010 were “time limited” and subject to review. These were:
· The suspension of a “cap” of two years pensionable pay on cost to the business of redundancy (which has the effect of enabling members of the Royal Mail Pension Plan aged over 55 to take a package including immediate payment of an enhanced pension).
· An additional two years support for those in the former Letters business whose travel costs exceed £1,250 per year following redeployment.
These terms were originally due to cease on 31st March 2013 but have been extended a number of times most recently by the “Joint Statement: Balanced approach to growth, efficiency and incentives” which deferred the review until May 2015.
In addition to this, HMRC changed its policy on taxability of buy down payments, to make them reckonable for tax and NI. As part of the Joint Statement Royal Mail agreed to pay 50% of the cost of tax and NI, again reviewable in May 2015.
Progress of talks
An initial meeting took place in January this year. Information on the numbers taking VR, excess travel expenses (ETE) and buy down have been provided, together with the associated costs. Discussions began in earnest at the end of April.
The union is seeking a long term solution on buy down of hours which would maintain this as a viable option for those wishing to reduce hours in a surplus situation. We are seeking a level playing field on ETE across Royal Mail Group by extending the additional support across the business. We also wish to ensure that redundancy terms remain sufficiently attractive to assist in resolving surplus situations and provide appropriate support to those leaving the business.
Both parties remain committed to concluding discussions this month if possible and a further meeting is scheduled later this week.
Any enquiries should be addressed to Ray Ellis’s department, quoting reference PTC/RE/dj/020.
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