THE FUTURE OF QUADRANT UPDATE ON THE ROYAL MAIL AND CWU JOINT DEVELOPMENT OF A VISION FOR CATERING SERVICES WITHIN ROYAL MAIL

THE FUTURE OF QUADRANT 

UPDATE ON THE ROYAL MAIL AND CWU JOINT DEVELOPMENT OF A VISION FOR CATERING SERVICES WITHIN ROYAL MAIL

 

 

Dear Colleagues

 

Branches will be aware that the future of Quadrant as the provider of Catering Services to our members in Royal Mail Group has been the subject of review by the business, which has led to a prolonged period of uncertainty for our Quadrant members.

 

The Quadrant contract was due for renewal in September 2013 and indications at the time were that Royal Mail had little enthusiasm for renewing or extending the contract and intended to go out to tender. As a result of sustained representations from the CWU the company reconsidered its position and extended the contract but for only 6 months.

 

Discussions continued through 2014 resulting in an agreed Terms of Reference for a Joint Review of Catering Services. That review has been conducted against the backdrop of reviewing the Quadrant contract, with recognition that providing catering, vending, and/or self messing facilities is seen as a valued contribution towards the wellbeing of Royal Mail Group employees and an important part of the overall employment package.

 

The aims of the review were to improve and sustain the long-term provision of catering facilities provided exclusively by Quadrant to the employees of Royal Mail and provide a stable platform on which to develop and market products and services in a way that encourages confidence and growth, without the necessity for repeated site reviews to respond to a continuing decline in takings.

 

The department is pleased to be able to inform Branches that we have now concluded that review which has culminated with a new 5 year contract for Quadrant, providing far greater stability and security for our members.

 

 

 

 

Following the commencement of the joint review activity Branches will be aware that the CWU electoral process resulted in Terry Pullinger assuming the role of DGS(P) and my own election as Assistant Secretary with responsibility for Quadrant. However, given that negotiations with Royal Mail had commenced during Terry’s tenure as Assistant Secretary and were nearing conclusion at the time of the changeover it was deemed pertinent by all parties that in order to ensure continuity Terry should complete those discussions.

 

The joint review activity to date has resulted in the attached agreed document, Update on the Royal Mail and CWU Joint Development of a Vision for Catering Services within Royal Mail.

 

Branches will note that Royal Mail has now agreed a new five year contract with Compass (the parent company of Quadrant) which was effective from 1st October 2015. The terms of the contract differ from previous arrangements and the contract will be subject to review in years 4 and 5. The cost of provision for catering has also been moved out of regional Royal Mail operational budgets and into a central budget. This will provide our Quadrant members with far greater stability and security for the immediate future, something which we are sure will be welcomed following the prolonged period of uncertainty they have experienced.

 

In addition it should be recognised that a great deal of joint activity has taken place with Royal Mail to ascertain what it is that our members want from the provision of catering facilities and how the current options provided may be improved going forward. The data gathered has been of great assistance in our discussions and we would like to thank everyone who participated in the survey that took place.  

 

The business is investing in canteen facilities at a number of sites to make them more appealing and user friendly for our members, which we are sure will be welcomed. Commitments have also been secured to further activity in regard to vending options, development of attractive and diverse menu options and the provision of local menus.

 

Equally, a tripartite arrangement has been agreed that will allow for far more transparent discussions on relevant issues. This ongoing progress will be jointly monitored through the establishment of a new Catering Forum. The Catering Forum will meet at least quarterly and will include representatives from the CWU, Quadrant and Royal Mail. While the commitment and principle currently exists to inaugurate the Catering Forum, discussions are continuing in relation to a Terms of Reference to support the activity.  

 

The department believes that the attached document provides a genuine platform for the Union and Royal Mail to continue working together and with Quadrant, to develop a renewed approach to the provision of catering facilities for our members.

 

Branches should note however that while the suspension of the ‘Use it or Lose It’ process for two years will afford our Quadrant members some respite and also provide a genuine opportunity to focus on achieving growth, it must also be recognised that the situation in regard to catering provision remains very challenging. It is therefore vitally important that our members continue to be encouraged to support the catering facilities that are available and would request that every effort is made by Branches and representatives to convey this message at every opportunity.

 

 

 

 

 

 

 

 

Branches and representatives are requested to ensure that our Royal Mail and Quadrant members are made aware of this LTB and the attached update at the earliest opportunity.

 

Any enquiries in relation to this LTB should be addressed to Davie Robertson, Assistant Secretary, email: dwyatt@cwu.org or shayman@cwu.org quoting reference number: 311.02.

 

Yours sincerely,

 

 

Davie Robertson

Assistant Secretary

 UPDATE ON THE ROYAL MAIL AND CWU JOINT DEVELOPMENT OF A VISION FOR CATERING SERVICES WITHIN ROYAL MAIL.

 

This briefing provides an update on progress on the Joint Review of catering facilities undertaken by Royal Mail and the CWU, announced on 16 October 2014. The aim of the review was to improve and sustain the long-term provision of catering facilities for the employees of Royal Mail.

The review has been conducted against the backdrop of reviewing the Quadrant contract, with recognition that providing catering, vending, and/or self messing facilities is seen as a valued contribution towards the wellbeing of Royal Mail Group employees and an important part of the overall employment package.

The aims of the review were to; improve and sustain the long-term provision of catering facilities provided exclusively by Quadrant to the employees of Royal Mail; to provide a stable platform on which to develop and market products and services in a way that encourages confidence and growth, without the necessity for repeated site reviews to respond to continuing decline in takings. The objective therefore is to create a business and financial model approach that enables complete central focus on providing a catering solution which delivers the spirit and intent of this vision.

In our last update we reported on the issues raised through externally facilitated focus group research and our commitment to trial new canteen formats at Greenford MC, Newcastle MC and Southampton MC.

Since then, Ipsos MORI have conducted a survey of Royal Mail employeesto test and quantify the findings of the focus groups. 1,449 employees completed the survey providing a cross section of views across units with canteen facilities and those with vending only.

The survey results supported the findings of the focus group research. We have been working with Quadrant to address the issues raised and to improve the catering service overall.

RMG and the CWU are pleased to update on our progress since the last Joint Statement.

Key Objective

Progress

 

Commitment for Royal Mall and the CWU to work together to develop a new specification for catering and vending

• Both Royal Mail and the CWU are pleased with the level of mutual co-operation throughout the review. Each has contributed in a constructive manner towards improving the catering service for the benefit of Royal Mail employees.

• The research findings have formed the basis for the new specifications for catering and vending.

 

To review and establish consensus on the purpose, role and extent of the catering subsidy

 

• Feedback from Royal Mail employees confirmed the value they place on the catering service; thus, the clear purpose of and role for the catering service is to serve Royal Mail employees.

• Royal Mail has agreed a newfive year contract for catering with Compass effective from 1st October 2015, with years 4 and 5 being subject to satisfactory performance by Quadrant.

• RMG recognises a catering operation on the scale currently offered requires an employer subsidy,which is budgeted at £8.4m in 2016/17.

Commitment by Royal Mail to review how the cost to the business of providing this new service specification over and above till receipts – i.e. a subsidy – is accounted

 

• Responding to feedback from Royal Mail employees, Compass will be paid a management fee for running the service rather than the current dividend arrangement. This fee has been benchmarked against other catering service contracts to ensure value for money. The cost of provision has been moved out of regional operational budgets and into a central budget.

To inform the development of a superior offering based on excellent quality of service, a flexible and responsive quality product offering/range, and a new focus/review of restaurant ambience and regional/local innovation

 

• Quadrant will benefit from a dedicated Head Chef charged with developing attractive and diverse menu options for Royal Mail employees.

• Three trial canteen and welfare formats opened earlier in the year at Greenford MC, Southampton MC and Newcastle MC are now fully open and their progress is being actively monitored and refined by user groups to provide lessons that may be applied more widely across the Royal Mail estate. RM plans to upgrade a further 9 sites by the end of March 2017.

• A further initiative, “24 vending”, has been trialled in Cambridge DO which stocks sandwiches, fruit and meals to heat in addition to traditional vending products. This format will be in a further 13 sites by the end of April 2016.

• Quadrant will also introduce local menu options designed to meet local tastes and cultural requirements appropriate to the needs of Royal Mail employees in each individual location.

• Developments in vending include a commitment for newer machines, an updated product range and a new vending promise on reliability, change and refunds.

 

To design an approach that enables regular joint review of the future service and of further development opportunities

 

• Quarterly food tasting sessions will be held with Royal Mail employees, food quality will be monitored through quality audits.

• Quadrant has made a commitment to on-going customer feedback through their “Did we Make you Smile” surveys.

• There will be monthly review meetings between Quadrant and Royal Mail and the CWU at catered sites.

• Vending product ranges will be reviewed with each unit each month.

 

To take due account of the requirements of current Quadrant employees for continued job security and employment standards going forward

 

• The new 5-year contract reflects Royal Mail’s commitment to providing a quality catering service to its employees and Quadrant employees can likewise take comfort from this commitment.

 

These are exciting developments and demonstrate a joint commitment to consolidate and develop the catering service in a sustainable and customer focused manner. To enable this to happen we need to recognise that both; the ‘Use it or Lose it’ process has been on hold for some time, and that some current Quadrant units are beyond economic viability,despite how much effort is put in to encourage higher sales, including no price increase for the last two years. There needs to be a period of stability in the remaining units to encourage investment and development of the new vision for catering that this joint approach represents. Accordingly, we have agreed the following measures:

 

• A limited number of lowperforming breakfast bar units (in terms of cost of provision per employee or very low sales) will close through a joint review in line with the spirit of ‘Use it or Lose it’ criteria, subject to the provision of self messing facilities and quality vending that at least match those in similar sized units elsewhere and alternative provision being available nearby. The exact list will be discussed and agreed between Royal Mail and the CWU nationally.

• Quadrant will conduct a joint optimisation exercise with the CWU to compare the efficiency of the remaining units on a like for like basis and where there are significant differences a staffing review will be conducted to design a plan to bring lower performing units into line with those that are more efficient. To be clear this activity is about revisions on how the provision is provided and not about the cessation of provision.

• The CWU and Royal Mail to jointly discussconverting the shops at four Mail Centres (Bristol MC, Manchester MC, Cardiff MC & North West Midlands MC) to the ‘24’ self-service format.

• Save as above, there will be no ‘Use it or Lose it’ reviews for two years effective from October 2015 to enable the new arrangements to bed in.

• All of the above will be conducted in line with current national agreements.  

There will be a period of consultation with employees in units affected by any of the above proposed changes, and every effort will be made to address local concerns in so far as they can be in line with the overall intentions of this agreed way forward.

The new approach to catering heralded by this joint review will be jointly monitored through the establishment of a new Catering Forum. It will meet at least quarterly and will include Representatives of CWU, Quadrant and Royal Mail. The Terms of Reference will be agreed and circulated.

Royal Mail and the CWU would like to thank everyone who has provided input to inform the catering review thus far and look forward to the continuing co-operation of all interested in ensuring that the catering service meets the needs of Royal Mail employees.
Terry Pullinger

Deputy GeneralSecretary (Postal)

Communication Workers Union

 

Taz Arif

Director of Workplace

Royal Mail – Group Property

 

Dated: 30th May 2016