Parcelforce Worldwide Summit Talks Update
Please find attached for your information a Joint Statement in relation to the above subject which will provide you with an update in respect of discussions that have been taking place between the business and the CWU at National level.
It has been a very testing time for the business and our members as Parcelforce tries to find the right levels of adjustment to deal with both increasing growth and competition.
It is envisaged that this statement along with other published activity will demonstrate to the members/employees that both the CWU and Parcelforce are determined to resolve these challenges and strengthen both Parcelforce as a business and our member’s employment experience and security.
Branches and representatives are requested to ensure that the attached Joint Statement is brought to the attention of our Parcelforce members.
Any enquiries in relation to this LTB should be addressed to Terry Pullinger, Assistant Secretary, e-mail: dwyatt@cwu.org or shayman@cwu.org quoting reference number: 111.01
Yours sincerely
Terry Pullinger
Assistant Secretary
JOINT STATEMENT
Summit Talks Update
Both Parcelforce and the CWU are acutely aware of the strain that can be experienced by everybody involved when dealing with capacity issues and fluctuating workloads. Many of the issues involved are complex and management and the CWU are trying exceedingly hard to restore balance whilst also ensuring the business remains strong and your jobs secure. This Joint Statement has therefore been produced to provide you with an update in regard to discussions that have been taking place.
Over the past few months PFW and the CWU have been meeting at the highest level to discuss the changing marketplace, business performance and future challenges. The meetings have been far reaching and challenging for all parties.
The courier and express parcel market, in which PFW operate, is very competitive and although there is significant volume growth (especially in B2C), and City Link have exited the market, competitors continue to invest and add capacity to their networks and prices remain very tight. The experience of City Link and the emergence of Amazon as a parcel delivery company has demonstrated how highly volatile this market is and it is essential and in all of our interests that we remain calm and keep working together, especially during the high pressure times, to develop our mutual interest solutions.
The international and retail sectors in particular are very competitive with many new entrants introducing low cost service options in our traditionally most profitable traffic streams.
All this means that PFW has to continually focus, innovate and respond to customer demands, the convenience agenda, quality of service and efficiency in order to compete effectively and maintain and/or grow its market stare.
Topics at our talks have included the requirement to address volume growth, depot resourcing arrangements and the positive impact on depot employed numbers, PFW commercial response to the market challenges and technology enhancements to help us compete effectively.
The employee opinion survey results for 2014/15 have been released and it is pleasing to note that engagement in PFW has remained high when compared to internal and external benchmarks. This result is very welcome given the significant challenges posed by the market and volume growth and demonstrates how well the business and unions are working together to deliver a successful business.
Another challenging aspect of PFW results over the last year has been the safety performance. The level of accidents in PFW have reduced despite the increase in traffic volumes, however those accidents resulting in absence have increased. Lost
time accident rates in PFW are considerably higher than our competitors and RM Group Operations. Customers are interested in our people performance. PFW have not always been able to provide alternatives for our people who cannot perform their normal duty, we need to change that and put in more support to enable them to attend work. We are also working with our safety colleagues to ensure we are doing all we can on prevention and identifying when accidents could have been avoided. We will be reinvigorating our current processes and agreements and using them consistently and effectively.
Employee Health and Wellbeing has always been an area of joint focus which is why we developed the employee reward package to include free eye tests and prescription glasses, free dental care up to the cost of National Health rates and the benefit of Benenden Health. However general attendance at work has also worsened by over 0.5% in the year, which represents a significant additional cost to the business and also concerns us as to why such a trend should develop in a culture where enabling good health is a joint aspiration. Both parties recognise that it is important to understand and deal with the underlying issues that are causing levels of sick absence to rise and are jointly sponsoring activity via the Table of Success Evaluation Group.
Progress has been slow on the national refresh of our revisions agreement, mainly due to the rapid volume growth that has been experienced over the last six months. However, we now have three depot trials agreed and implementation will commence soon. Work on other depot revisions will take place concurrently with a view to completing all necessary revision activity prior to this year’s peak period and a new agreement will be finalised. Both parties are totally committed to this activity and look forward to the increased efficiency that this will bring to our operation.
Against that backdrop a national Table of Success forum is being arranged to discuss and understand all the issues above and agree joint priorities with our Area Management, Hubs and Regional Organiser teams.
Both parties recognise that the efforts of Parcelforce employees has been outstanding through this difficult period and that we are totally committed to building mutual interest solutions that continue Parcelforce’s success and your employment security.
As this key activity continues we will continue to keep you updated.
Terry Pullinger Peter Fuller
Assistant Secretary Operations Director
CWU Parcelforce Worldwide
Date: 8 July 2015
CWU Eastern No5 Branch 
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