Incentive Scheme for Delivery Units
In July 2025 members endorsed both the Rebuilding Royal Mail Part 1 and Part 2 agreements. Part of the commitments within the agreement was for an incentive bonus scheme to be agreed.
Talks began last year on how these schemes would work. The talks within the delivery operations were guided by the following principles:
- That the scheme would be self-funded.
- That it would be based on the opportunity to receive a bonus payment if the cost per item for an individual unit is reduced.
- That the criteria for achieving the bonus would be based on an individual unit’s own budget and quality.
We have tried to make the scheme simple to understand. The principle is that if the local unit reduces the cost per item through either increased traffic or improvements in productivity/efficiency, then a bonus will be paid. The Terms of Reference (TOR) attached explain how the incentive bonus scheme will work. A more detailed brief of the scheme will be published for reps and managers in due course.
The scheme ensures that 30% of the bonus is guaranteed simply by reducing the unit cost per item. The remaining 70% is linked to quality based on the current unit’s quality performance.
The national agreement reached on USO reform, as agreed within section 2.7, is as follows:
2.7 Delivery Site Incentive Scheme
RMG and CWU will introduce a new Delivery Site Incentive Scheme in delivery units following each site’s USO go-live date.
- The terms of this incentive scheme will be agreed and self-funded on an adjusted cost per item model, based on an individual unit-specific cost, to the timelines agreed by the working group.
- The scheme will not jeopardise resourcing to workload, or the outputs of the mandatory weekly resourcing meetings which is an absolute necessity under USO reform. Neither will it quicken nor change the mandatory review post-deployment, nor change the job security guarantees.
- The delivery incentive scheme will be reviewed following USO Deployment.
- Further talks on similar schemes in processing and other parts of RMG will continue with the aim of reaching an agreement in line with the commitments set out in Section 5.
Currently there are 26 units across the UK which have so far deployed DM26 and they are:PetworthMossley HillSheppertonIrlamCharltonManchester NothBakewellManchester South EastMarpleDunsRipleyRuncornBarnard CastleRossendaleBramptonClarkstonGrange Over SandsCampbeltownKeswickAlresfordLongridgeLingfieldGarstonSt Ives TRPortlandHebden Bridge
All of these units are already within the incentive scheme, backdated to their deployment date. All units will enter the scheme from day one of their deployment.
The important principle is that whenever a unit falls below the office budget for any quarter, our members will receive a payment. Previously this reduction would have gone back to Royal Mail.
It should also be noted that during the first period after USO deployment, the old pre-USO budget will remain in place, providing a real opportunity for our members to receive a bonus payment.
There are plenty of safeguards within the scheme, including an ongoing review, a governance structure, an escalation process, and safeguards for the Road Traffic Accident (RTA) process.
We are holding a call with the 26 units on Thursday 18th June to brief the local reps and managers of the 26 DM sites. A further briefing is scheduled for the Area Delivery Reps of the 26 DM sites. Similarly, we will be holding a briefing for Divisional Reps on 18th June.
It is the intention to hold a national online briefing on USO in the next two weeks, during which we will also explain the incentive scheme.
This is the first nationally agreed incentive/bonus scheme since PBS (Performance Bonus Scheme) in 2000. This scheme will allow our members within deliveries to potentially receive a quarterly bonus.
Further negotiations will now commence on reviewing how incentive schemes can be introduced across other parts of the Royal Mail Group.
Finally, I would like to place on record my thanks to the following Postal Executive members Owain Beaumont, Darren Glebocki, Steve Halliwell, and Ally Macleod South East Divisional Rep, for their hard work and support in achieving the agreement. I would also like to thank National Officers Davie Robertson and Tony Bouch.
Any enquiries relating to the content of this LTB should be referred to the Deputy General Secretary (Postal) department hford@cwu.org.
Yours sincerely,
Martin Walsh
Deputy General Secretary (Postal)
CWU Eastern No5 Branch 
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