Royal Mail: Sports and Social Clubs – RM Decision to Stop Subscriptions from Payroll – DRP Registered
Branches are advised that we were recently informed by Royal Mail that as a consequence of the new ERP System due to be introduced later this year (that includes payroll), a decision has been made to cease members’ subscriptions to Sports & Social clubs being taken directly from payroll. This is as a result of what management are describing as a payroll simplification project.
Royal Mail have been clear that they are not seeking our agreement to this change, and the dialogue they initiated was simply consultation and a courtesy in case we received any enquiries from Branches / members who are impacted by the changes. The reality is, these plans were advanced by the time management decided to engage with the Union.
As a consequence of the above, we have strongly objected to the actions of Royal Mail and in particular, the belated and cursory nature of the engagement, with them effectively telling us what they were planning.
Dispute Resolution Procedure (DRP) Registered
The reality is, Royal Mail’s unilateral changes will have an impact on thousands of our members, who support their local Sports & Social clubs via payroll. I have therefore advised management that the Postal Executive feels very strongly about this issue, which impacts upon not only the wellbeing of our members, but also on the potential future viability of the Sports and Social clubs.
As Royal Mail are obviously intent on pressing ahead with stopping the subscriptions from payroll despite our opposition on behalf of our members, the Postal Executive has endorsed the submission of a DRP, which was formally lodged with Royal Mail on 23rd February. The following forms the basis of the DRP:
- Royal Mail’s investment in the new HR payroll system should enable a more effective and cost-efficient way to fund the Sports & Social clubs whilst continuing the payment via members’ wages. If anything, it should be much easier on a new platform to continue with the current arrangements rather than withdrawing a benefit that thousands of our members subscribe to and support.
- The Sports & Social clubs that our members have voluntarily agreed to subscribe to via payroll have been in place for many years and it is fair to say that these clubs rely heavily upon the monies received from our members via payroll. If our members don’t wish to pay into the clubs, it is their prerogative to cease the subscription via payroll and therefore, we have to assume that the members all want to support the clubs they are affiliated to.
- Royal Mail’s decision, whilst acknowledging this is an unintended consequence, represents a direct threat to the very future of these clubs, many of which rely on these important revenues taken directly at source and could easily be in danger of closure.
- Many of the clubs are run by volunteers who are also Royal Mail employees and crucially they provide a community and social hub that enables our members to come together to socialise with workmates outside of work. This is a matter of wellbeing and helps to create a healthy environment whereby our members are able to relax and interact on a social basis with co-workers.
- Royal Mail should be encouraging participation and involvement in these clubs, rather than making it more difficult for our members. Furthermore, a lot of these clubs undertake significant work to support various charities and therefore there is an inescapable, genuine value to society through the involvement of Royal Mail employees.
We are awaiting a formal response from Royal Mail to our latest correspondence as well as dates to meet under the DRP process. In the meantime, we understand that letters have already been sent from RM directly to the clubs and to members informing them of the cessation of subscriptions via payroll. In this regard, Royal Mail have indicated to us that they are willing to be helpful by considering requests made directly to them from the clubs to afford the clubs more time to put in place alternative arrangements for the collection of subscriptions. We would therefore encourage clubs to seek an extension of the timescales being proposed for the changes to enable further discussions to take place under the auspices of the DRP.
As a consequence of Royal Mail’s actions described above, the Postal Executive encourages Branches and Representatives to highlight the concerns of the members impacted with the appropriate HR Business Partners and crucially we would ask Branches to engage directly with the administrators of the Sports & Social clubs, with the aim of ensuring they strongly object to and challenge these unnecessary changes.
Further developments will be reported.
Yours sincerely,
Andy Furey
Assistant Secretary
CWU Eastern No5 Branch 
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