REVISED NATIONAL RULEBOOK – FEBRUARY 2026

REVISED NATIONAL RULEBOOK – FEBRUARY 2026

Further to LTB 262/25 circulated to Branches on 26 November 2025, Branches will be aware that the positive measures contained within the Employment Rights Act have resulted in changes being required to the model political fund rule for Unions (except for Northern Ireland).  

Unions have therefore had to review their respective political fund rules to ensure they reflect the alterations from the Employment Rights Act, as well as capturing other aspects specific to each Union.

A Special NEC meeting on 9 February endorsed the new political fund rule following preliminary authorisation from the Certification Officer on 28 January 2026. Formal authority was then sought for the rule and this was provided by the Certification Officer on 13 February 2026

Additionally, following a further meeting with the Standing orders committee, some further small amendments have been made to rule 10.5, relating to Regional Sub Committees and the submission of motions to General Conference. These were agreed by the NEC at a meeting on 25 / 26 February 2026 in line with Rule 15.4.1.  

The National Rule book has been amended accordingly to account for the new political fund rule as well as rule 10.5. This is attached for the information of Branches.

Any further enquiries with regards this please contact aniven@cwu.org or Angela Niven on 020 8971 7237.

Yours sincerely

Dave Ward                                                     

General Secretary    

LTB 059/26 – Revised rule book February 2026

Att: Rule-Book-2026-Updated-February 2026

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SPECIAL REPORT TO CWU CONFERENCE: LABOUR PARTY RELATIONSHIP

SPECIAL REPORT TO CWU CONFERENCE: LABOUR PARTY RELATIONSHIP

As branches will be aware, the CWU’s affiliation to Labour has been subject to an increase in scrutiny and debate in recent months, given the issues with the current Labour government.

Although the government has introduced many positive changes, including the Employment Rights Act, it is clear that there have been too many mistakes, both political and legislative. These mistakes have given rise to Reform and the real threat of a deeply anti-union government taking shape in a few years time. This is therefore a crucial time to ensure that we are able to create an effective political strategy that reaches out to our members who have become disillusioned with politics and one that can fully exert our influence on the government to ensure it is working in the true interests of working-class people.

The wider movement, including the trade union movement, must also be able to recognise where we have not been able to connect with working-class people and why we need to build a more dynamic movement that can organise across sectors, particularly in the private sector.

This is a crucial political moment for all trade unions and their members. We must rise to the challenges we are facing to build political and industrial power for working people. This can only be done if our branches and membership have a greater understanding of the strategy the union is pursuing.  

Therefore, it is within this context that the NEC has submitted a Special Report to our upcoming CWU Conference to enable a wider and more informed debate about the changing UK political environment.

The purpose of the Special Report is to lay out an assessment of the current Labour government and the next steps in the CWU’s continued affiliation to the Labour Party and in achieving the wider trade union movement’s political goals. This includes acknowledging the need for a clear change of direction, given the failure of the current labour leadership and a comprehensive, class-focused approach to resolving the political division that has spread across our society.

Between now and the CWU Conference we are committed to engaging with branches, reps and members on the content and direction set out in this report.  This will include a briefing of all CWU branches, details of which will be sent out in due course. 

The SOC will be issuing an LTB later today about how branches can submit amendments to this report and further details on how the report will be debated at Conference.

If you have any further questions, please contact the General Secretary’s Department at dlynch@cwu.org

Yours sincerely

Dave Ward                                                   

General Secretary                                     

LTB 058/26 – SPECIAL REPORT TO CWU CONFERENCE – LABOUR PARTY RELATIONSHIP

Att: Special Report- NEC LP Relationship

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ROYAL MAIL – IMPORTANT PARLIAMENTARY AND GOVERNMENT DEVELOPMENTS

ROYAL MAIL – IMPORTANT PARLIAMENTARY AND GOVERNMENT DEVELOPMENTS 

Further to LTB 56/26 which updated branches on the current talks with Royal Mail, the purpose of this LTB is to set out further Royal Mail developments with parliament and Government.

Branches will be aware that the leaders of Royal Mail have now been called to give evidence in front of the Business and Trade Parliamentary Select Committee and explain their ongoing quality of service failures.   We can now confirm that the Select Committee hearing will take place on the 24th March and that Ofcom and CWU have also been invited to give evidence.  

It is important to recognise the significance of these latest developments. Initially, the company were just asked to provide answers in writing to a series of questions on quality of service failures – now they must also face the scrutiny of a Select Committee hearing.  Branches may have also seen that Royal Mail’s response was to say that the hearing will give them the opportunity to explain why change is necessary. 

The CWU welcomes this latest development, particularly that CWU and Ofcom will also now be able to give evidence.

The union’s evidence will focus on what’s really happening on the ground, including how our members are treated and the reasons why service quality has been a long-term problem – rather than Royal Mail’s claim that these are short-term issues.  In essence our submission will broadly cover the following areas:

  • Why this is a Royal Mail self-inflicted customer quality and recruitment crisis, caused by their imposed/failed revisions and their decision to impose low wages and poor conditions for new starters in 2022.
  • How the company has pursued a deliberate strategy to devalue a postal workers job, which combined with a toxic managerial ethos, has created chaos and demoralisation in almost every workplace across the country.
  • Why there needs to be regulatory change and a level playing field to ensure fair competition between Royal Mail and its competitors.
  • What needs to be done to align the interests of customers, workers, Royal Mail, Ofcom and Government on a positive vision for the future.

Further meeting with the Secretary of State 

We can also report that a further tripartite meeting has been arranged between the Secretary of State, Daniel Kretinsky and the CWU on the 19th March.  This meeting will be a report back session on the Governments proposal for both parties to engage in four weeks of intense talks to resolve all outstanding issues. 

Next Steps

The CWU will continue to push for the voices of frontline postal workers to be heard by politicians, the public, the media and the company. 

As part of this we will be undertaking the activities listed below and engaging branches, representatives and members in supporting each of these actions.

  • We will ask members to speak out about what’s really happening in their local offices and to write directly to the Chair of the Select Committee Liam Byrne byrne.mp@parliament.uk
  • Next week we will ask members to send a digital postcard directly to their MP’s.
  • We are organising a lobby of parliament for the middle of March and will mobilise branches and representatives to attend on the day (further details of this event will follow in due course).
  • In the coming weeks we will be undertaking direct online and face to face briefings with MPs.

In addition to the above activities, we have attached an MP’s brief that branches and representatives can also use to engage your local MP’s.The union will also be sending this brief directly to all MP’s.  Further briefing information for MP’s and our submission to the Select Committee is also being prepared and will be sent out to branches in due course.

Finally, please ensure the content of this LTB is distributed to our members in every workplace and advise that we will be updating our members directly next week.

Any enquiries on the content of this LTB should be addressed to the General Secretary’s Office, Dawn Lynch on dlynch@cwu.org.

Yours sincerely

Dave Ward       

General Secretary                                                                                      

Martin Walsh                                                  

Deputy General Secretary (Postal)

LTB 057/26 – ROYAL MAIL – IMPORTANT PARLIAMENTARY AND GOVERNMENT DEVELOPMENTS

Attachment: Royal Mail Issues Briefing Feb 2026

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Royal Mail Called to Parliament

Please find below the link to a news item from the BBC this morning, it seems following the letter from The Business and Trade Committee to Royal Mail giving them two weeks to reply in writing to explain the delays in service. The Business & Trade Committee have decided even though the date set for a reply is next Monday, they are not happy with what’s happening , so they have now called Royal Mail Executives to face the committee.

 

This has come about by MPs and members of the public complaining  about the service, this pressure  can only help with the ongoing negotiations on USO and Equalisation of hours for the new starters.

 

https://www.https://www.bbc.co.uk/news/articles/c9dnx445w4do.

 

ROYAL MAIL LGV Apprentices 2026

ROYAL MAIL LGV Apprentices 2026

The department has been in discussions with Royal Mail regarding the 2026 LGV Apprentices Program. Colleagues will recall we had previously agreed and launched an LGV Driver Apprenticeship as part of the Driver Academy process in 2021. While discussions had concluded on the detail the department was awaiting notification of the timeline, however we have become aware that Royal Mail have commenced the activity and the roles are currently being advertised. These positions are open to internal candidates and members can apply using the QR Code at the bottom of the LTB or via the Links attached.

Although the apprenticeship advert is currently live, through our discussions we have been able to extend the closing date from Monday 2ndMarch to Thursday 5th March, if you would like to be considered for the apprenticeship you will need to apply before the closing date of 5thMarch 2026.

We have confirmed with the business they will follow the process covering the previously agreed LGV Recruitment defined in the Driver Academy activity in 2021 which was confirmed in LTB 034/25 Royal Mail LGV Apprentices 2025, with the pay rates updated to the current levels, which are highlighted below:

Pay rates and grades below, Rates effective from 01st April 2025LGV Driver Class C National£24,476.00£29,523.00LGV Driver Class C Outer London£26,573.00£33,529.00LGV Driver Class C Inner London£27,707.00£34,959.00

The above rates are inclusive of paid meal relief and are NMW compliant and will be uplifted by the agreed CWU pay increase due in April 2026.

The LGV Apprenticeship Scheme will be open to external and internal candidates over 21 years of age and with 1 to 2 years driving experience and will offer the opportunity to join Royal Mail and attain the Apprentice qualification, a C&E Licence, DCPC and be ready to progress to a Professional Driver role within 13 months.

The apprenticeship will include modular learning, Driver training and on the job training over the 13-month period.  The attainment of the LGV C&E Licence will be scheduled in the early months of the course.

  • All Apprentices will be recruited on a 36.25 hour net contract in line with the terms and conditions for the LGV Professional Driver Grade. To confirm the additional 1 hour paid relief is included in the annual pay amount.
  • Apprentices will also qualify for Underpin payments as appropriate.
  • Pay rates will increase in line with future pay agreements.
  • On attainment of the LGV C&E Licence and sign off from a Royal Mail Advanced Driver Coach pay will be varied to 75% of the National LGV C&E Pay along with this the OT rate will be increased
  • Where applicable, the appropriate LGV OT rate will be applied for any extra duty performed, in accordance with apprenticeship, driver’s hours and working time guidelines.
  • Apprentices who successfully complete their Royal Mail LGV Apprentice Scheme training will be offered permanent Royal Mail employment contracts at LGV grade. If the offer of permanent employment is accepted, the previous 12 months’ employment will be treated as service and qualify these individuals for sick pay, pension membership and all other entitlements linked to completing 12 months’ service.
  • All other LGV terms and conditions of employment, except where amended by this agreement will continue to apply to all LGV Apprentices.

The department can confirm in line with LTB 034/25 issued on 18th February 2025 the apprenticeship opportunity is open to current internal employees, however it must be noted, should they apply and be successful they would be accepting the Driver Apprenticeship Scheme Terms and Conditions including Pay Rates.

The LGV Apprenticeship scheme will be managed and monitored by GTG. For clarification the business has confirmed they will not be running an internal Driver Academy Training process.

The locations and numbers per VOC for the apprenticeship program are below:ADMLocation No of Roles Scotland & NI SDC4 Preston4 Newcastle2 Manchester2 North YDC7 North West SH10 Central West MSH10 Coventry5 Central East EMA7 South WestSWDC5 South East PRDC4Total60

We would advise when applying for this role, the program can be challenging, however the conclusion of the course does result in the attainment of a professional Class1 (LGV) license and a role within National Distribution. It must be noted when taking up the apprenticeship that this is a commitment to the driver career path and that we cannot guarantee an automatic return to your previous role should you subsequently decide that you no longer wish to pursue this opportunity. Please find attached – LGV Apprenticeship FAQs –Internal Applicants only.

We do believe the apprenticeship opportunity will be welcomed by our members many of whom would like to take the opportunity to progress to Professional Driver roles. Branches are asked to ensure that the contents of this LTB are brought to the attention of our members across Royal Mail Group.

Any enquiries in relation to this LTB should be addressed to Davie Robertson, Assistant Secretary, email: jrodrigues@cwu.org  or jmansell@cwu.org  quoting reference LTB 054/26.

Yours sincerely,

Davie Robertson

Assistant Secretary

LTB 054/26 – Royal Mail LGV Apprenticeships 2026

Att: FAQs LGV Apprenticeships – Internal Applicants 2025

Att: LGV Apprentice Advert links

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Defeating the Narratives of Division Workshop, Birmingham, 19thMarch, 2026

Defeating the Narratives of Division Workshop, Birmingham, 19thMarch, 2026

The purpose of this LTB is to remind branches to register for the Defeating the Narratives of Division Workshop which will be taking place on Thursday 19th of March 2026 at 47, Summer Lane, Birmingham, B19 3THfrom 09:30 -15:30.

This one-day workshop will be facilitated by the Ella Baker School of Organising and will focus on the following topics:

What is the problem?  A quick-fire group-based session on ‘what are the narrative of division issues in your workplace’ followed by ‘what are the solutions?’

Class alternatives to narratives of division. A review of the economic and political choices that have led us to a point where too many of OUR people are looking to the right for solutions.

‘Story of Us’. Exploring what it means to feel like you are in a unionised workplace, how we actively create that sense of class solidarity, and its role in helping us win at work.

If you wish to attend the training, please contact your branch, applications should be made via the Portal by the 27th February.  

If you require any adjustments or assistance to participate at this event, please let us know. 

Any enquiries regarding this LTB should be directed to equality&education@cwu.org

Yours sincerely,

Kate Hudson 
Head of Equality, Education & Development

LTB 52/26 – Defeating the Narratives of Division Workshop Birmingham 19th March 2026

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ROYAL MAIL UPDATE – PARLIAMENT TO INVESTIGATE RM QUALITY OF SERVICE FAILURES 

ROYAL MAIL UPDATE – PARLIAMENT TO INVESTIGATE RM QUALITY OF SERVICE FAILURES 

All branches and reps will have seen the very significant developments announced by the BBC, which reported that Liam Bryne MP, Labour Chair of the Business and Trade Select Committee, has now written to the CEO of Royal Mail giving the company two weeks to explain what is really happening with quality of service failures.  A copy of the letter that has been sent to Royal Mail is attached and you will see it demonstrates how seriously the Government are now taking this issue.

In response, the CWU is clear that we must now step up further engagement with our members and parliamentarians to ensure that the voices of postal workers are fully heard in this parliamentary investigation.  The approach to this engagement exercise will be set out in due course.  

For their part, the company continues to display a total lack of integrity in trying to explain away these issues and they are clearly in denial about the sheer scale of their self-inflicted UK wide crisis in customer quality, staff turnover/shortages and overtime bans. 

CWU meeting with the Labour Government Secretary of State, the Rt Hon Peter Kyle MP and EP Group

In addition to yesterday’s announcement, we can also report that a three-way meeting took place yesterday as referenced above at which Daniel Kretinsky was in attendance.  The meeting was scheduled by the Secretary of State to bring both parties together at the highest level to discuss the major problems we are facing. 

The outcome of the meeting was that EP Group and CWU agreed to a Government facilitated proposal for a new four-week process of intense talks to resolve all outstanding issues, including USO Reform, equalisation and the full implementation of the agreements EP/RMG reached with the CWU and UK Government.  However, whilst we very much welcome this Government led process, we must report that we were not encouraged at all on the position set out by the owner and we will be giving the Postal Executive and Divisional Reps a full report of the meeting later today.

This is a moment where the union needs to mobilise and come together to do whatever is necessary to defend our members, customers and the UK postal service.  Our objective is simply to ensure that both parties can honour and deliver all the commitments we made to each other and the government in the Rebuilding Royal Mail Part 1 & 2 agreements.  We remain convinced that the positive vision of the future which was laid out in both these connected agreements is the only realistic and sustainable way forward. 

Next Steps  

Given the seriousness of the situation, we will be holding an online national briefing for branches, divisional and area reps at 2pm tomorrow.  This will be followed in due course with a local reps briefing before the end of the week.  This is a priority commitment for all Representatives. The link for Wednesday’s meeting will be sent out later today.

In the meantime, it is essential that all branches ensure the content of this LTB is distributed widely to our members in every workplace.

Any enquiries on the content of this LTB should be addressed to the General Secretary’s Office, Dawn Lynch on dlynch@cwu.org.

Yours sincerely

Dave Ward

General Secretary                                                                                        

Martin Walsh                                               

Deputy General Secretary (Postal)      

LTB 051/26 – ROYAL MAIL UPDATE PARLIAMENT TO INVESTIGATE RM QUALITY OF SERVICE FAILURES

Attachment: Royal Mail Deliveries Letter

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International Women’s Day Networking Event – Registration Reminder

International Women’s Day Networking Event – Registration Reminder

Further to LTB 013/26, issued on 13thJanuary 2026, we are writing to remind Branches to register participants for the forthcoming International Women’s Day Networking Event.

The event will take place on Tuesday 10th March 2026, at the Friargate Quaker Meeting House, Friargate, York, YO1 9RL from 10:00am – 16:00.

The theme for International Women’s Day 2026 is “Give to Gain”, underscoring the importance of collective support, shared learning, and the positive impact that comes from women coming together to drive change.

To reserve your place or for further details, please email: equality&education@cwu.org

If you require any adjustments or assistance to participate at this event, please let us know.

We look forward to seeing you in York!

Yours sincerely,

Kate Hudson 
Head of Equality, Education & Development

LTB 050/26 – International Women’s Day Networking Event – Registration Reminder

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REVISED CWU MEMBERSHIP APPLICATION FORMS 

REVISED CWU MEMBERSHIP APPLICATION FORMS 

Branches will be aware that parts of the legislation contained within the Employment Rights Act will be introduced from 18th February 2026onwards. Among these are the following changes that have been made to the political fund and associated matters (except for members in Northern Ireland).

  • New members joining a union will be automatically ‘opted in’ to political fund contributions.
  • The requirement to vote on retaining a trade union political fund every 10 years will be removed.
  • The levy to fund the Certification Officer, imposed by the Tory government has ended, with the government confirming that the final levy has been collected, so trade unions will no longer be liable for any further levy payments.

Given the above, there has been a need to amend all our membership application forms, in time for the change in legislation on the 18th of February. The online joining page is also being updated, as well as the CWU website and associated literature.

A link to the revised membership forms has been created and can be accessed at CWU: Application Forms.

From 18 February 2026, the new membership application forms are the only ones to be used. If the old membership application forms are completed after this date, it is likely to result in a delay to the form being processed.

Branches must therefore ensure the following is completed:

  • Old membership application forms are destroyed and removed from circulation.
  • Branches must ensure any online links to membership application forms are updated to include the new application forms.
  • Branches must update any information about membership and ensure that in the future all literature is compliant with the new political fund rule.
  • The content of Branch websites must be reviewed to ensure compliance.

The CWU undertakes a range of political work on issues that affect our members. We have successfully campaigned on issues from pay, pensions and workplace rights, to broader issues like the NHS and housing. It is therefore beneficial that members will now be automatically opted in to the political fund, while they still retain the right to opt out upon joining or at any point in their membership with the CWU.

It is important to note that any member who chooses not to contribute to the political fund of the union shall not be excluded from any benefits of the union or placed in any respect either directly or indirectly under any disability or disadvantage as compared with other members of the union (except in relation to the control or management of the political fund).The attached opt-out information notice contains the details for doing so.

Members in Northern Ireland will not be automatically opted-in but can opt-in to the national political fund at any time (the CWU does not retain a regional political fund in Northern Ireland).

The CWU has been at the forefront of the trade union movement in leading the fight for a New Deal for Workers and reversing the Tory anti-union legislation. The Employment Rights Act is a welcome and important step towards rebalancing the world of work. The first set of benefits will soon start to be realised, with other important steps being implemented over the coming months. These will be given further publicity at the appropriate time.

I would like to thank all Branches for their cooperation in implementing the measures listed above. If you have any questions, please contact the General Secretary’s Department at dlynch@cwu.org.

Yours sincerely

Dave Ward                                                   

General Secretary              

LTB 048/26 – REVISED CWU MEMBERSHIP APPLICATION FORMS                     

Attachment: Opt-out information notice  

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PURCHASE OF ANNUAL LEAVE (POAL)

PURCHASE OF ANNUAL LEAVE (POAL)

The CWU are aware of the level of confusion and frustration felt by our members and reps alike regarding the loss of access to purchase additional annual leave via salary sacrifice. This LTB sets out to explain the challenges which exist but more importantly the work the CWU is undertaking with Royal Mail to try and resolve the situation.

Within the Way Forward agreement of 2000, the CWU and Royal Mail agreed that individuals should have the opportunity to be able purchase annual leave of up to six weeks. The CWU also secured the added benefit that members could pay for the additional annual leave using salary sacrifice and therefore not pay national insurance or tax costs. This had worked well and with no issues regarding the national minimum wage.

However, since 2022 the national minimum wage has increased by 28.5%, from £9.50 to £12.21 per hour and will go up by a further 4.1% in April this year to £12.71. This rise in the minimum wage has led to lots of companies being fined for breaching the minimum wage law as a result of use of salary sacrifice arrangements. This is because the HMRC (who audit companies to see if they are breaching the minimum wage law) only count gross hours pay following deductions by way of salary sacrifice, such as pension contributions, purchase of annual leave or any other My Bundle purchases.

Colleagues will recall that back in March 2025 Royal Mail stepped in and took over all individuals’ payments for POAL and My Bundle. They did this because they had a genuine fear that the HMRC could find them liable for breaching the minimum wage law due to the continued use of salary sacrifice.  This would have resulted in a significant fine and damage to their reputation, at a time when they were calling out other courier companies for using the self-bogus employment model to undercut Royal Mail in the parcels market. At that point Royal Mail had a 7% buffer in operation to determine whether individuals would qualify for salary sacrifice. This buffer is now set at 20% – which I will address later in this communication.

Royal Mail will continue to pay for the cost of both POAL and My Bundle until April and individuals will not have to pay back any monies for the financial year of 2025/2026. This decision was not taken lightly for a couple of reasons; the total cost which has been more than £13 million and the fact that they’re not paying this amount of money to all staff, only those who had voluntarily opted to purchase either annual leave or My Bundle items.

What has the CWU agreed with the business?

First and foremost our priority was to stop Royal Mail from removing the ability for those individuals with less than 20 years’ service to purchase additional annual leave. This would have been the easiest way for the company to mitigate this risk and ensure compliance, but we have worked with the company to ensure this was not the route they have gone down.

Last year over 63,051 employees were written to allowing them to purchase additional leave, with 21,255 individuals choosing to do so. It was therefore essential for us that this remained an option for all individuals, including those with less than 20 years of service.

We have also ensured that salary sacrifice is available for individuals to use subject to the qualifying criteria. Even with the 20% buffer, 3391 individuals will still be able to continue to purchase annual leave via salary sacrifice.

The CWU have also agreed that all individuals who want to purchase annual leave but do not qualify for salary sacrifice can still purchase additional annual leave at the same cost as POAL. The new system is called Additional Leave Unpaid (ALU).

We are in talks with the company to give individuals the opportunity to spread this payment for leave over the course of the year via net pay, in the same way as union deductions and other voluntary payments are paid. There are some legalities with this proposal, but we believe this should be a way to help members spread the cost of the purchase of additional leave. If we achieve this option, then someone on the lowest 0.6% purchase of annual leave will pay less than £1 more per week for the purchase of additional leave and even those who are at the top and paying 3% to purchase annual leave will only pay £3 extra per week.

We have also ensured that there is a mechanism for new entrants to continue to purchase additional annual leave, this was a real problem due to their lower hourly rate. This will kick in from the beginning of the new leave period. Last year over 2000 new entrants purchased additional leave.

There was one issue which was somewhat of a grey area and that was around whether the HMRC would count the functional supplements toward the minimum wage calculation, despite it being a permanent addition to basic pay and that it goes up by the same percentage as a basic pay rise. Having sought advice from our legal advisors and Royal Mail’s, it is thought that the safest method is to run the affordability check solely on base pay.

The CWU are doing two things in this area, the first is we have discussed the possibility of consolidating part of all supplements into basic pensionable pay as part of this year’s pay rise. This is in line with the CWU conference policy of consolidating the minimum supplement that everyone achieves (which is £11.88) into basic pensionable pay. If this was to be achieved, then this would increase all the old contracts by an additional 32p per hour and would allow a significant number of individuals to be able to use salary sacrifice. This would require Royal Mail to fund the additional 13.6% in pension costs if this was to happen.

In addition, we are using our political influence and seeking that the ministers involved advise the HMRC to accept that the permanent functional supplements count towards the minimum wage calculation.

We have had several discussions with Royal Mail concerning the increase they have made to the buffer they have used over the years. The buffer was always 7% (due to pension contributions) and they have moved it to 20% which has meant a significant number of individuals have not qualified for salary sacrifice.

Royal Mail argues the increase in the buffer is needed to mitigate the various challenges with the minimum wage law. These include that the current PSP system is old and does not cater for a blanket case by case management if an individual is potentially in breach of the minimum wage law. This means that they cannot monitor whether in addition to an individual purchasing annual leave, they may also be purchasing several My Bundle items which would bring them below the minimum wage calculation.

Royal Mail specialist lawyers who advise other companies about being within the law have advised them of the following:

  • That they do not believe Royal Mail will be classed as salaried under the different categories which are listed by the HMRC.
  • That the national minimum wage audit reference period is the same as a worker’s pay frequency i.e. monthly or weekly.
  • That minimum wage compliance is calculated based on the average earnings over the reference period divided by the hours worked.

The CWU still believe that the 20% buffer is too high and want this lowered. The 20% buffer means that from April an individual must be earning 20% above the £12.71 minimum wage.  This means after POAL, 6% pension, 1% booster that their gross pay is £15.25 per hour and even if it was reduced to 10% it would need to be £13.98 per hour. Our current national rate without salary sacrifice is £14.21 per hour with a wage rise due in April.

It is important that the union criticises and calls out Royal Mail when they are in the wrong as we have done over their USO model (ODM) and their failure to honour the commitment to equalise new entrants’ pay, terms and conditions.

However, it is also correct to say in this area we have had productive and open discussions with Royal Mail to try and navigate through these issues in a way which is acceptable and continues to allow all members who want to purchase annual leave up to 6 weeks that opportunity.

The CWU lawyers and Royal Mail Lawyers have met to go through the challenges with the minimum wage law and how the HMRC are potentially interpreting it.  Royal Mail’s position is that they will not risk their reputation from any audit and are following their lawyer’s advice.

The important message is that all individuals who want to purchase annual leave should continue to do so, either by way of POAL (Purchase of Annual Leave) or via ALU (Additional Unpaid Leave).  The cost of purchasing leave remains the same.

The CWU remains in discussions with Royal Mail over whether we can get more individuals access to salary sacrifice or whether we can get a weekly payment for ALU which means individuals can spread the payment in a similar way to how POAL is paid.

My message is to encourage those individuals who purchase additional leave to continue to do so, and we will continue to try and improve the repayment plan for this.

Please see attached Annex A which explains in more detail the issues with the minimum wage law.

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 49/26 POAL

LTB 49/26 Attachment – Annex A

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