Delivery Incentive Scheme – End of Quarter Results
The end of September concluded the end of the latest incentive scheme quarter and we can now provide an update on the number of CWU delivery members who have qualified for a bonus payment.
Before highlighting the results, it is important to explain how the incentive scheme operates.
How the Incentive Scheme Works
The incentive scheme is based on four quarterly periods throughout the year.
A unit must operate within budget to qualify for a bonus payment. Where this is achieved, CWU members can receive a share of up to 50% of the available bonus pot.
The payment is split as follows:Bonus ElementPercentageCriteriaBudget Performance30%Paid for achieving the budget target and is not linked to quality measures.Quality Measures70%Dependent on performance against quality targets.
The CWU negotiated the 30% budget-related element to ensure that members still receive a payment even where management decisions, such as restricting overtime, impact quality performance.
Quality Measures
The remaining 70% of the bonus is based on three independent quality metrics:Quality MetricDelivery Point CoverageTracked 24 PerformanceTracked 48 Performance
These measures are assessed independently. A unit that achieves one or more of these targets can still receive a proportion of the quality-related payment, provided it remains within budget.
Quarter-End Results
For this quarter, the maximum available bonus pot for CWU members was £1.5 million (50% of the overall £3 million incentive fund).
CWU delivery members have secured a total payment of: £874,281 for the three-month period.
While only a proportion of delivery units had been operating under the new arrangements for the full quarter, the emerging trend is clear: units that have been deployed for longer are generally more likely to qualify for a bonus payment.
Key HeadlinesMeasureResultTotal Bonus Paid to CWU Delivery Members£874,281Delivery Units Qualifying for Payment352Total Delivery Units931Estimated Full-Time Equivalents Qualifying21,931Percentage of Employees Qualifying42%Average Payment£40Highest Individual Unit Payment£389 (Wythenshawe)Units Earning More Than £10048Units Earning More Than £20017Units Earning More Than £3005
Notable achievement: Wythenshawe Delivery Office achieved the highest payment of £389 per EFTE (Estimated Full-Time Equivalent), despite only participating in the scheme for six of the twelve weeks within the quarter.
Top 10 Bonus-Performing Delivery UnitsRankDelivery UnitBonus Payment
(Per EFTE)EFTE in the UnitTotal Unit Pot1Wythenshawe£38968 FTE£26,4532Manchester North East£34035 FTE£11,9083Pinner£30934 FTE£10,4984Maryport£30314 FTE£4,2395Sheffield West£30247 FTE£14,1846Walworth£29431 FTE£9,1047Ealing£27643 FTE£11,8608Coldstream£2659 FTE£2,3849Belper£26044 FTE£11,44010Weybridge£25131 FTE£7,790
These payments are paid per estimated full time equivalent. Part timers will get pro rata of the above payment. All units mentioned have also achieved ALL quality metrics therefore unlocking the full potential bonus.
Bonus Qualification by ROD AreaROD AreaUnits Qualifying for BonusAnglia20Greater London24Midlands20Northern Ireland & North East16North West48Scotland51South Central28South East22South Midlands20South West28Wales & Marches28Yorkshire34
Looking Ahead
While these results will be welcomed by the thousands of members receiving a payment, it is important to remember that this is only the first full bonus period under the scheme.
We also recognise that a significant number of units are still addressing deployment issues. Those units will need time to stabilise and fully embed the new ways of working before they have a genuine opportunity to maximise bonus earnings.
It is also worth remembering that, before the CWU negotiated this incentive arrangement, any savings generated would have been retained entirely by Royal Mail, with no additional payment being made to our members.
Equally it is also worth noting that these lump sums are one off payments and therefore could not be used to fund equalisation of new entrants’ pay, terms and conditions. This issue is being negotiated separately.
We will continue to provide regular updates on the performance of the incentive scheme as we move through the next quarter and will closely monitor both the payments being achieved and the factors affecting members’ ability to earn them.
Any enquiries relating to the content of this LTB should be referred to the DGSP department hford@cwu.org.
Yours sincerely,
Martin Walsh
Deputy General Secretary (Postal)
LTB 294/26 – Delivery Incentive Scheme – End of Quarter Results
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