Terms of Reference between Royal Mail and the Communication Workers Union for Joint Working Work Measurement and Planning Value Development
Dear Colleagues
Branches and representatives will be aware of advice which has been issued by the department in relation to non-cooperation with industrial engineering activity since 2012 activity (LTB 162/12 and subsequently LTB’s 641/12, 366/13 and 640/14 refer).
During this time the department has been engaged in discussion with the business in relation to formalising an agreement in regard to Planning Values and Industrial Engineering in Mail Centres and RDC’s, in line with our agreed Progressive Agenda for Processing.
Historically in 2012 issues around industrial engineering activity arose when the business informed the department that they wished to use external Industrial Engineers, Scott Grant Ltd. to gather data across the RM pipeline which included Mail Centres and RDC’s. This came about due to a requirement for the business to convince the regulator that the costing and pricing approaches used in Royal Mail at that time were fair and competitive, hence the need to have independent verification of the key data that underpinned the pricing structure. In effect the key data being referred to was Data Bank Planning Values, derived from Royal Mail’s own industrial engineering assumptions.
Since that time discussions have been taking place, although they have been somewhat protracted on both sides for various reasons. The business did agree in principle, as a show of good faith and commitment to the discussions, to provide training in Industrial Engineering techniques for four of our CWU Representatives in 2013. The training was completed in 2015 and the department now has 4 dedicated representatives who are fully trained and available to offer assistance in regard to measurement activities.
The department can now inform you that an agreement which enables full involvement of our CWU Industrial Engineers in activity going forward and which details the processes and protocols to be applied has now been concluded and is attached for your information.
The attached agreement provides for:
➢ Transparency in relation to how data is being gathered, details of what data is being gathered and what it is being used for.
➢ That the IE’s will not report on individual performance.
➢ That any data gathered by IE’s during their visit/s will not be used for the purposes of either conduct or individual performance management, with such issues remaining proper to the role of line managers.
➢ The provision of the relevant kit/equipment for our IE’s to undertake measurement activity.
➢ The approach to be adopted by IE’s during site visits to undertake measurement activity.
➢ Recognition of the role of trained CWU representatives within the IE process and provision of adequate release time to participate with pay protection applying, in line with normal IR Framework arrangements.
➢ Review of agreement in 12 months.
The business has committed to make every effort to provide notification to the department prior to Industrial Engineering activity taking place and we will share any such information with representatives at sites affected. Therefore any activity that is proposed by the business at sites where notification has not been provided should be brought to the attention of the department.
In addition should any representatives require Industrial Engineering assistance they are asked to contact the department where any possible assistance will be afforded to them.
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: 730.03
Yours sincerely
Davie Robertson
Assistant Secretary
Terms of Reference between Royal Mail and the Communication Workers Union for Joint Working Work Measurement and Planning Value Development
Introduction
Royal Mail and the CWU are committed to working together to deliver growth, stability and long term success and the Agenda for Growth Agreement sets out the agenda to achieve this. The programme of work commits us to develop transparent, fair and jointly understood approaches to performance measurement tools in support of planning and performance improvement activity, in order to enhance our joint objectives. By working together we will develop transparency, understanding and consensus on planning values.
To facilitate much greater joint understanding and ownership of productivity and workload measurement it was agreed that Royal Mail provide training for four CWU representatives in industrial engineering techniques. The CWU representatives that are trained in industrial engineering techniques will support our joint objective to develop a ‘Blue Print Vision’ for Royal Mail, Mail Centres and RDC’s, and provide advice to the CWU National Officer with responsibility for Processing, in order to inform policy making and add value to the growth and efficiency agenda.
This training has now been completed and four nominated CWU representatives have achieved the required standard for accreditation as Industrial Engineers. An integral part of this agreement is a commitment by Royal Mail to provide the necessary training to ensure performance rating for the CWU representatives is maintained on an annual basis to ensure their accreditation remains valid.
Background
In 2012 Royal Mail commissioned Scott Grant Ltd, a firm of specialist industrial engineers, to verify national planning values used in the business for planning, productivity and cost measurement. The work entailed industrial engineers visiting a number of Mail Centres, Delivery Offices and RDC’s to review the planning values for each product stream. Royal Mail used the industrial engineering values to inform product costing and confirm that its pricing is competitive and profitable.
Industrial Engineering Activities
As part of their normal duties towards developing and maintaining the planning values, industrial engineers will regularly carry out work study tasks to collect data on the operation, including measuring distances, times for tasks, container fills and other flows of work to ensure the Royal Mail values used for traffic weighting and product costing are reliable. This activity will be supported by CWU trained industrial engineers to enable Royal Mail and the CWU to confirm that the work measurement is inclusive and up to date.
Planning values that have been validated or developed for standard or new operating procedures for indoor processing activities specific to Mail Centres and RDCs will include industry standard, recognised contingency and rest allowances where applicable.
Methodology
All relevant equipment, such as study tablets and measuring wheels, required to undertake measurement activity will be provided to the CWU IE’s by Royal Mail on an as required basis depending on the nature of the task and the level of involvement. Full familiarisation training will be delivered to ensure that they are fully conversant with all functionality.
Key measurement activity will be jointly undertaken where practically possible. It is neither a requirement nor will it be feasible for the CWU IE’s to take part in all studies. The proposed programme of IE activity will outline the key measurement activity that is to be jointly undertaken. Allocation or alignment of resource from the CWU trained representatives will be the subject of agreement at National level in advance of the activity taking place. This process will afford the CWU IE’s the opportunity to be made aware of study work and provide the ability for them to express a preference in relation to activity that they would like to participate in. Equally and in line with the agreed joined up approach, where the CWU IE’s are made aware of sites/issues that may benefit from studies taking place they will have the opportunity to propose relevant activity and all such requests will be considered by Royal Mail.
The CWU will have access to all data gathered as part of the studies that take place. Prior to industrial engineers visiting a site employees based there will be briefed to make them aware of the visit(s) and the purpose.
When the industrial engineer(s) arrive they will be met by the unit manager who will introduce them to the local CWU representative(s) and staff involved as well as other managers where applicable. They will then be shown around the office to familiarise them with the layout and processes at the unit concerned.
Observations will be made on processes compliant with agreed standard operating procedures, Safe Systems of Work and local/National agreements. Standard operating procedures, Safe Systems of Work and local/National agreements should be adhered to at all times.
The IE’s will not report on individual performance and are employed to assess how long tasks take and whether these may be improved. Data gathered by IE’s during their visit(s) will not be used for the purposes of either conduct or individual performance management. Individual performance management remains the role of line managers working with their teams.
Work study activity may also involve photography or filming, and employees will be asked in advance if they have any objection in participating, if they prefer not to be included they will not be filmed. The information and data is primarily designed for National use. Local feedback on the methods, layout, equipment etc. and overall unit performance (but not individuals’ performance) may be discussed with the managers and the CWU representative(s) where there are opportunities for improvement. Where this is the case then the full terms of existing National agreements, joint statements and guidelines will apply including the IR Framework.
Local CWU representatives will be advised in advance of a planned visit to their site and a CWU liaison representative will be nominated and afforded reasonable release to discuss and participate in the activity to reassure CWU members of the commitments and protocols contained in this document. Employees will be jointly briefed by local managers and CWU representatives before the visit commences to advise them of the purpose of the IE activity.
Data Gathered
Following work study activity data gathered will be analysed by the industrial engineering team. All data will be shared and discussed with the trained CWU representatives for their feedback into agreed outputs.
Information resulting from the study work will be discussed and shared with the CWU Nationally either at pre-arranged meetings or at the National Processing Group (NPG).
Concluding Principles
The whole approach is underpinned by a commitment to deliver cultural change, which is designed to align the interests of customers, the workforce and the company.
The role of the CWU representatives trained in industrial engineering techniques within these processes is fully recognised, as is the requirement for appropriate release in order for them to meaningfully prepare, participate and obtain the views of CWU Representatives and members during site visits.
Once the requirement for release has been agreed between the National parties it is anticipated that local managers will facilitate this release and that all reasonable requests will be granted. When preparing for, participating in or assessing work study or measurement activities, pay protection will apply in line with normal IR Framework arrangements.
Review
A review of the way of working in relation to this agreement will take place 12 months from the date of this agreement, to ensure it is working productively in the interests of improved industrial relations and efficiency.
Any questions of interpretation, implementation or application of this document shall be referred to the respective headquarters for resolution.
Graham BakerDavie Robertson
Head of Industrial EngineeringAssistant Secretary Royal Mail CWU
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