Formation of the CWU United Tech and Allied Workers (UTAW) National Branch

The purpose of this LTB is to inform branches of the formation of the new United Tech and Allied Workers (UTAW) branch of the Communication Workers’ Union, which seeks to represent and fight for workers interests in the expanding tech sector.

The CWU was approached by the London Branch of a group called the Tech Workers Coalition (TWC) earlier in the year with a request to discuss the feasibility of them joining the CWU. It is indicative of our high standing in the trade union movement and our innovative communications approach, that the TWC specifically approached the CWU as the union they wanted to join and work with to recruit and organise in the sector.

During initial conversations, the TWC outlined the background of their organisation, provided details on their current working environment, highlighted the issues that come with working in a sector where little to no union recognition currently exists, and made the case for why they wish to join as a standalone National Branch within the CWU.

Following subsequent work from the Recruitment & Organising Department – within which the feasibility, practicalities and potential of a new tech workers national branch have been explored and outlined – the CWU National Executive Committee approved the formation of the new branch.

The CWU has for some time been a viable option for workers in the tech industry looking to unionise, and already has members in the sector.

The formation of this new branch seeks to expand our existing membership in the sector and provide existing and potential members a place within which to organise and collectivise to support and empower one another as we fight against exploitative business practices in the industry and for the improvement of every member’s working conditions.

UTAW represents all tech workers: if you know someone who develops or deploys technology; if you have a family member whose workplace is owned by a tech company; if you have a friend whose labour is a necessary part of a tech companies’ operation; and if they are not currently a member of a trade union but would like to be – please encourage them to join us.

Any enquiries on the above LTB should be addressed to the Recruitment & Organising Department at rodept@cwu.org.

Yours sincerely,

Ray Ellis                                                       Dave Ward
Head of Recruitment and Organising   General Secretary

LTB 461/20 – Formation of the CWU United Tech and Allied Workers (UTAW) National Branch

JOINT STATEMENT – PAY AND SHORTER WORKING WEEK

Last week the National Postal Officers seized the first opportunity to call together Senior Field Officials and Postal Executive members in a carefully planned legally compliant face-to-face briefing to update them on the national negotiations, whilst also attempting to progress the Joint Statement signed with the employer at the start of July 2020.

The information exchanged at our meeting in Liverpool with our leaders in the field should by now have filtered down through our field structure via Area/Local Representatives and Branch meetings.

However since our briefing and after Royal Mail Group’s presentation on their financial results and the publicity surrounding it, we have been inundated with questions and requests for more information which can be used in the field to brief members.  This LTB is therefore designed to help Branches and Representatives close any knowledge gap that may exist with members and assist colleagues in dealing with enquires.

Joint Statement

The Joint Statement was signed by the CWU and RMG at the start of July 2020 and published in LTB 352/20.

The Joint Statement represents a logical flightpath of progress and seeks to deal with all of the significant issues and challenges faced.

The talks have been conducted in a reasonable manner with both parties trying hard to repair relationships whilst under considerable pressure to deliver and deal with the day to day operation under COVID-19 arrangements.

Timeline and Scope of Talks 

This section of the Joint Statement (copy attached) defines the logical sequence of events whilst also discussing issues requiring agreement.  The five sections of progress were defined as follows:

1. To discuss the financial position of the company.

Clearly there has been much publicity about this and despite the continuing challenges of COVID-19 costs, the situation is improving and the CWU is convinced that Royal Mail Group with the right ambition and growth plan can build on this difficult time and still emerge as the most trusted doorstep connector in this country and the only provider that guarantees delivery to every address in the country with total equality.

2. To agree (in accordance with the second bullet point under the heading ‘Rebuilding Trust’) a deployment plan for the local revision and deployment of change activity required to address the immediate operational and financial challenges facing the UK business. 

This section dealt with how we address the 600 plus local disagreements hanging over from our dispute and the imminent threat at that time of managerial executive action.  It acknowledged that there was a need for light touch revisions in all units to re-align operations to improve operational arrangements and adjust to the challenge of the COVID-19 impact.  There has been positive progress on what this should look like and we have also made significant progress on machine moves and trials with final sign off on negotiator agreements imminent.

Trials: In respect of trials we have been discussing the issues of ‘Automated Hours Data Capture’, ‘Resource Scheduler’, Dedicated Parcel Van Delivery Duties’, ‘2 Bundle Delivery Approach on D2D products’.

Resource Scheduler has already been the subject of an agreed joint trial which management ceased because it did not work.  The business now claim that they have modified it and believe it will now work.  They have agreed to give the Union (and those involved with the original joint trial) a full presentation on the changes made which have now given confidence that the system can work.  Once confidence is restored a further trial is warranted, the original terms of reference will hold the field and an agreed joint trial will be moved forward.

Automated Hours Data Capture (AHDC) was described by the Royal Mail Group AGM 2020 Trading Statement as:

‘dispensing with old, outdated ways of working such as handwritten sign in sheets, moving to automated clock-in, clock-out systems as used by other businesses for decades’

Statements like that give the impression that we have not embraced new technology, that we are a prehistoric organisation stuck in the past.  We take exception to that.  We already have a number of our sites that use such systems, our letter operation is fully automated, our parcel and delivery people are armed with new technology which enables doorstep transactions and timed deliveries.  Our CWU position is clear – new technology provides the opportunity for new products and services and diversification and growth but we will not agree to its use to de–humanise the workplace, bring continuous pressure on individuals or remove the role of the Union in protecting people in the workplace.  To be clear the latest draft on management’s desired usage of AHDC is far from the simplistic statement made by the RMG board in respect of clocking in and out.  Verbally in the talks management had agreed with the CWU negotiators that new technology would not be used to;

Track people, stop pay, for disciplinary purposes or to remove the Union’s role in the workplace regarding manpower planning, work organisation etc.

However, management’s latest draft proposal does indeed track people around the workplace and builds up individual data on all individual employees in all workplaces, a far cry from the simple clock-in and out description that the board chose to use to ridicule our current operations.

We continue negotiations on these issues.

Dedicated Parcel Delivery Trials

We are negotiating a terms of reference for the trial which seeks to represent the need for dedicated parcel deliveries for format 3 & 4 parcels and later parcel deliveries associated with our LAT products.  As you will be aware RMG were proposing in our dispute to only have such operations from 300 delivery offices but we are seeking a trial agreement that enable solutions for such parcels across all our offices and also ensures that as much as possible is delivered on our core letter & parcel deliveries as that is the most efficient and effective arrangement.

Post Box Strategy

As part of the national discussions words were agreed in relation to an ongoing review of the Post Box estate.  However, while that document on “light touch” change has been sitting in abeyance out with the formal national talks, the company has presented an alternative strategy which would significantly change the current agreed approach.

Royal Mail Group have tabled proposals which significantly increase the number of pillar boxes to be collected from, by our members onto delivery.  The plan outlined to the Union is for circa 15,000 boxes only to remain as post 4pm.  These boxes will be largely POL outlets, business users parcel posting boxes, railway stations, main supermarkets and airports.  Royal Mail Group say that the reason for this is due to accelerated posted letter decline.

Two Bundle D2D “warm call” Trial

Royal Mail Group wish to carry out a trial in 3 delivery units which will include delivering from separate sequenced & manual bundles of mail on a Monday & Saturday whilst throwing in or prepping up all D2D items into the preparation frame on a Tuesday and warm call the D2D items with all prepped combined mail from Tuesday – Friday.  The objective of the trial from Royal Mail Group’s perspective is to improve efficiency whilst also enhancing quality on the D2D product.  We are currently in discussions with Royal Mail Group on developing the trial and agreeing a terms of reference for this as well as including within this approach discussion on a future automation strategy for D2D whilst also growing the product.

Machine Moves

A draft document has been concluded on a clear process for the review of the Letter Automation Estate covering CSS, IMP, iLSM and CFC machines both at National level and on a Mail Centre Catchment Area (MCCA) basis.  At National level, it has been agreed a new National Automation Group will be created.  This Group will have initial oversight of the plan which will be reviewed on a 3-monthly basis.  This plan will determine the phased activity in each MCCA.

In reviewing local proposals, all functions affected by the potential machine removal or change are fully represented at the negotiating table through the creation of Local Joint Working Groups (LJWG).  We believe that the document will be of assistance to our representatives across all functions in dealing with what is likely to be a significant program of machine removals.

3. To agree a pay settlement for April 2020. 

Our 2020 pay award is a standalone pay claim and separate from our 2019 dispute.  The General Secretary and I negotiated this section of the logical process because without resolving the 2019 dispute and specifically the 2^nd hour of the Shorter Working Week, there would have to be a simple no strings pay award which not only rewarded our members for their work over the past year but also their magnificent and continuing effort during the pandemic.  We argued that the light touch revision activity moving on with trials and other operational change would not be positively embraced unless it reflected and coincided with a mutual interest approach and settling our 2020 pay claim clearly provided that opportunity, hence its positioning at number three in the Joint Statement.

RMG have, or are attempting to break the spirit, intent and logical sequence of the Joint Statement by now seeking a longer-term pay award once everything in this Joint Statement is agreed.  This complicates these negotiations and I repeat breaks the logical sequence of events originally envisaged.

Royal Mail Group have now suggested a framework for a 3 year pay award which not only breaks the original construct of the Joint Statement by holding the April 2020 pay award back until all 1 to 5 items are concluded but also offers the potential for no actual pay increase for April 2020.

Royal Mail Group state that it is not a formal offer, so we assume it’s the starting point for negotiations.  However, whilst we cannot give you the detail of that informal summary, we can tell you that it starts from a very low base which would be totally unacceptable to the CWU and does not reflect your amazing efforts as key workers and is at odds with the value that our nation puts on postal workers.

Negotiations continue.

4. To agree a resolution to our dispute, operational change and the future strategy of the RMG, including Parcelforce. This will include short, medium and long term operational changes and the use and deployment of technology.

5. To develop a mutual interest’s strategy for the future, the Royal Mail and CWU will now also explore the potential to better utilise the company’s unrivalled infrastructure, including the following: – 

• Developing a joint strategy to maintain the USO as part of the social fabric of the UK, including exploring the potential for new USO products to support its long-term economic sustainability. 
• Exploring opportunities to minimise letter traffic decline. 
• Developing opportunities for diversification by focusing on an expanded and wider role for Royal Mail employees in supporting local communities, local and regional business growth and measures to assist the recovery of the UK economy. 
• Exploring how Royal Mail and its employees can play a significant role in supporting environmental change and the development of a green new deal in the UK. 

The Joint Statement anticipated items 4 & 5 may require negotiations to take longer than items 1 to 3 with the follow words agreed by both parties;

‘All areas will be progressed with a view of reaching agreement by the end of July, with potential for extension in points 4 & 5 above’.

Items illustrated under 4 and 5 of this section of the Joint Statement are still being discussed and negotiations continue.

Resolution to our dispute still needs to be concluded and in particular how we honour the Four Pillars Agreement (recommitted to in the Joint Statement).

Productivity

An agreed measure of Productivity is an issue included in our dispute and an outstanding issue from the Four Pillars Agreement.  We have now agreed a terms of reference for a joint working group with industrial engineering expertise from both RMG and the Union to look at productivity not just from a 100 BSI perspective but what enables good productivity i.e. work environment, tools, training, different building designs, culture, location and geography etc.

Those discussions will now commence imminently.

New Operational Pipeline

 To be clear we are in negotiations regarding how new parcel sort centres will work, rather than opposing them.  We understand that the growth in parcels and online activity is growing faster than ever and we have to have more capacity and the automation to meet that demand.

On a positive note we have sought assurances on no compulsory redundancies, no mail centre, delivery and RDC closures consequently and have received a positive response which will be part of any overall agreement.

Parcelforce

Whilst the defeat of the TUPE proposal was a significant achievement, recent presentations on the future Pipeline and Parcel Strategy including in Liverpool have given a distinct impression that the strategy was constructed on the basis that Parcelforce would no longer have been an integral part of the business.   We have made representations that RMG need to bring renewed focus on the future of Parcelforce and have received commitments from the company that RMG remain committed to growing a successful Parcelforce business.

6 Day USO

Following on from the RMG AGM there was much speculation in the media regarding the future of the 6 day USO.  The Regulator (Ofcom) is carrying out a review, the timescales of which are as follows:

• Ofcom will release a ‘User Needs Review’ based on a consultation they carried out; this is expected around November 2020.

• Ofcom will carry out a consultation on all aspects of the Regulatory Framework (i.e. not just the USO) this is anticipated to be early 2021.

• If any legislation change is required, it is anticipated that this will take place late in 2021.

• Any change would then potentially be introduced in April 2022 subject to receiving parliamentary assent.

To be clear, the CWU policy and the commitments contained in our Four Pillars Agreement is to protect and promote the 6 day USO.  Equally, whilst the Regulator and the Government may recommend changes to the Regulatory Framework and the USO, it has to be cleared through parliament.

I trust that this LTB has provided colleagues with a brief update on where the National Postal Officers and RMG are currently in the talks as well as an insight into how complex these negotiations are.

 We will be back in negotiations again today and further updates will follow.

It is essential that our members are briefed on the contents of this LTB and further updates will be issued in due course via our various communications channels and social media forums.

In closing, to be absolutely clear, no roll out of revision activity, trials or machine moves has been agreed at this stage.

Any enquiries in relation to the content of this LTB should be addressed to the DGS(P) Department.

Yours sincerely,

Terry Pullinger

Deputy General Secretary (Postal)                                     

LTB 459/20 – JOINT STATEMENT – PAY AND SHORTER WORKING WEEK

Joint Statement between RMG and CWU

JOINT STATEMENT – PAY AND SHORTER WORKING WEEK

Last week the National Postal Officers seized the first opportunity to call together Senior Field Officials and Postal Executive members in a carefully planned legally compliant face-to-face briefing to update them on the national negotiations, whilst also attempting to progress the Joint Statement signed with the employer at the start of July 2020.

The information exchanged at our meeting in Liverpool with our leaders in the field should by now have filtered down through our field structure via Area/Local Representatives and Branch meetings.

However since our briefing and after Royal Mail Group’s presentation on their financial results and the publicity surrounding it, we have been inundated with questions and requests for more information which can be used in the field to brief members. This LTB is therefore designed to help Branches and Representatives close any knowledge gap that may exist with members and assist colleagues in dealing with enquires.

Joint Statement

The Joint Statement was signed by the CWU and RMG at the start of July 2020 and published in LTB 352/20.

The Joint Statement represents a logical flightpath of progress and seeks to deal with all of the significant issues and challenges faced.

The talks have been conducted in a reasonable manner with both parties trying hard to repair relationships whilst under considerable pressure to deliver and deal with the day to day operation under COVID-19 arrangements.

Timeline and Scope of Talks

This section of the Joint Statement (copy attached) defines the logical sequence of events whilst also discussing issues requiring agreement. The five sections of progress were defined as follows:

1. To discuss the financial position of the company.
   Clearly there has been much publicity about this and despite the continuing challenges of COVID-19 costs, the situation is improving and the CWU is convinced that Royal Mail Group with the right ambition and growth plan can build on this difficult time and still emerge as the most trusted doorstep connector in this country and the only provider that guarantees delivery to every address in the country with total equality.
2. To agree (in accordance with the second bullet point under the heading ‘Rebuilding Trust’) a deployment plan for the local revision and deployment of change activity required to address the immediate operational and financial challenges facing the UK business.

This section dealt with how we address the 600 plus local disagreements hanging over from our dispute and the imminent threat at that time of managerial executive action. It acknowledged that there was a need for light touch revisions in all units to re-align operations to improve operational arrangements and adjust to the challenge of the COVID-19 impact. There has been positive progress on what this should look like and we have also made significant progress on machine moves and trials with final sign off on negotiator agreements imminent.

Trials: In respect of trials we have been discussing the issues of ‘Automated Hours Data Capture’, ‘Resource Scheduler’, Dedicated Parcel Van Delivery Duties’, ‘2 Bundle Delivery Approach on D2D products’.

Resource Scheduler has already been the subject of an agreed joint trial which management ceased because it did not work. The business now claim that they have modified it and believe it will now work. They have agreed to give the Union (and those involved with the original joint trial) a full presentation on the changes made which have now given confidence that the system can work. Once confidence is restored a further trial is warranted, the original terms of reference will hold the field and an agreed joint trial will be moved forward.

Automated Hours Data Capture (AHDC) was described by the Royal Mail Group AGM 2020 Trading Statement as:
‘dispensing with old, outdated ways of working such as handwritten sign in sheets, moving to automated clock-in, clock-out systems as used by other businesses for decades’
Statements like that give the impression that we have not embraced new technology, that we are a prehistoric organisation stuck in the past. We take exception to that. We already have a number of our sites that use such systems, our letter operation is fully automated, our parcel and delivery people are armed with new technology which enables doorstep transactions and timed deliveries. Our CWU position is clear – new technology provides the opportunity for new products and services and diversification and growth but we will not agree to its use to de-humanise the workplace, bring continuous pressure on individuals or remove the role of the Union in protecting people in the workplace. To be clear the latest draft on management’s desired usage of AHDC is far from the simplistic statement made by the RMG board in respect of clocking in and out. Verbally in the talks management had agreed with the CWU negotiators that new technology would not be used to;

Track people, stop pay, for disciplinary purposes or to remove the Union’s role in the workplace regarding manpower planning, work organisation etc.

However, management’s latest draft proposal does indeed track people around the workplace and builds up individual data on all individual employees in all workplaces, a far cry from the simple clock-in and out description that the board chose to use to ridicule our current operations.

We continue negotiations on these issues.

Dedicated Parcel Delivery Trials

We are negotiating a terms of reference for the trial which seeks to represent the need for dedicated parcel deliveries for format 3 & 4 parcels and later parcel deliveries associated with our LAT products. As you will be aware RMG were proposing in our dispute to only have such operations from 300 delivery offices but we are seeking a trial agreement that enable solutions for such parcels across all our offices and also ensures that as much as possible is delivered on our core letter & parcel deliveries as that is the most efficient and effective arrangement.

Post Box

As part of the national discussions words were agreed in relation to an ongoing review of the Post Box estate. However, while that document on “light touch” change has been sitting in abeyance out with the formal national talks, the company has presented an alternative strategy which would significantly change the current agreed approach.

Royal Mail Group have tabled proposals which significantly increase the number of pillar boxes to be collected from, by our members onto delivery. The plan outlined to the Union is for circa 15,000 boxes only to remain as post 4pm. These boxes will be largely POL outlets, business users parcel posting boxes, railway stations, main supermarkets and airports. Royal Mail Group say that the reason for this is due to accelerated posted letter decline.

Two Bundle D2D “warm call” Trial

Royal Mail Group wish to carry out a trial in 3 delivery units which will include delivering from separate sequenced & manual bundles of mail on a Monday & Saturday whilst throwing in or prepping up all D2D items into the preparation frame on a Tuesday and warm call the D2D items with all prepped combined mail from Tuesday – Friday. The objective of the trial from Royal Mail Group’s perspective is to improve efficiency whilst also enhancing quality on the D2D product. We are currently in discussions with Royal Mail Group on developing the trial and agreeing a terms of reference for this as well as including within this approach discussion on a future automation strategy for D2D whilst also growing the product.

Machine Moves

A draft document has been concluded on a clear process for the review of the Letter Automation Estate covering CSS, IMP, iLSM and CFC machines both at National level and on a Mail Centre Catchment Area (MCCA) basis. At National level, it has been agreed a new National Automation Group will be created. This Group will have initial oversight of the plan which will be reviewed on a 3-monthly basis. This plan will determine the phased activity in each MCCA.

In reviewing local proposals, all functions affected by the potential machine removal or change are fully represented at the negotiating table through the creation of Local Joint Working Groups (LJWG). We believe that the document will be of assistance to our representatives across all functions in dealing with what is likely to be a significant program of machine removals.

3. To agree a pay settlement for April 2020.

Our 2020 pay award is a standalone pay claim and separate from our 2019 dispute. The General Secretary and I negotiated this section of the logical process because without resolving the 2019 dispute and specifically the 2nd hour of the Shorter Working Week, there would have to be a simple no strings pay award which not only rewarded our members for their work over the past year but also their magnificent and continuing effort during the pandemic. We argued that the light touch revision activity moving on with trials and other operational change would not be positively embraced unless it reflected and coincided with a mutual interest approach and settling our 2020 pay claim clearly provided that opportunity, hence its positioning at number three in the Joint Statement.

RMG have, or are attempting to break the spirit, intent and logical sequence of the Joint Statement by now seeking a longer-term pay award once everything in this Joint Statement is agreed. This complicates these negotiations and I repeat breaks the logical sequence of events originally envisaged.
Royal Mail Group have now suggested a framework for a 3 year pay award which not only breaks the original construct of the Joint Statement by holding the April 2020 pay award back until all 1 to 5 items are concluded but also offers the potential for no actual pay increase for April 2020.

Royal Mail Group state that it is not a formal offer, so we assume it’s the starting point for negotiations. However, whilst we cannot give you the detail of that informal summary, we can tell you that it starts from a very low base which would be totally unacceptable to the CWU and does not reflect your amazing efforts as key workers and is at odds with the value that our nation puts on postal workers.

Negotiations continue.

4. To agree a resolution to our dispute, operational change and the future strategy of the RMG, including Parcelforce. This will include short, medium and long term operational changes and the use and deployment of technology.
5. To develop a mutual interest’s strategy for the future, the Royal Mail and CWU will now also explore the potential to better utilise the company’s unrivalled infrastructure, including the following: –

• Developing a joint strategy to maintain the USO as part of the social fabric of the UK, including exploring the potential for new USO products to support its long-term economic sustainability.
• Exploring opportunities to minimise letter traffic decline.
• Developing opportunities for diversification by focusing on an expanded and wider role for Royal Mail employees in supporting local communities, local and regional business growth and measures to assist the recovery of the UK economy.
• Exploring how Royal Mail and its employees can play a significant role in supporting environmental change and the development of a green new deal in the UK.

The Joint Statement anticipated items 4 & 5 may require negotiations to take longer than items 1 to 3 with the follow words agreed by both parties;

‘All areas will be progressed with a view of reaching agreement by the end of July, with potential for extension in points 4 & 5 above’.

Items illustrated under 4 and 5 of this section of the Joint Statement are still being discussed and negotiations continue.
Resolution to our dispute still needs to be concluded and in particular how we honour the Four Pillars Agreement (recommitted to in the Joint Statement).

Productivity

An agreed measure of Productivity is an issue included in our dispute and an outstanding issue from the Four Pillars Agreement. We have now agreed a terms of reference for a joint working group with industrial engineering expertise from both RMG and the Union to look at productivity not just from a 100 BSI perspective but what enables good productivity i.e. work environment, tools, training, different building designs, culture, location and geography etc.

Those discussions will now commence imminently.

New Operational Pipeline

To be clear we are in negotiations regarding how new parcel sort centres will work, rather than opposing them. We understand that the growth in parcels and online activity is growing faster than ever and we have to have more capacity and the automation to meet that demand.

On a positive note we have sought assurances on no compulsory redundancies, no mail centre, delivery and RDC closures consequently and have received a positive response which will be part of any overall agreement.

Parcelforce

Whilst the defeat of the TUPE proposal was a significant achievement, recent presentations on the future Pipeline and Parcel Strategy including in Liverpool have given a distinct impression that the strategy was constructed on the basis that Parcelforce would no longer have been an integral part of the business. We have made representations that RMG need to bring renewed focus on the future of Parcelforce and have received commitments from the company that RMG remain committed to growing a successful Parcelforce business.

6 Day USO

Following on from the RMG AGM there was much speculation in the media regarding the future of the 6 day USO. The Regulator (Ofcom) is carrying out a review, the timescales of which are as follows:

➢ Ofcom will release a ‘User Needs Review’ based on a consultation they carried out; this is expected around November 2020.
➢ Ofcom will carry out a consultation on all aspects of the Regulatory Framework (i.e. not just the USO) this is anticipated to be early 2021.
➢ If any legislation change is required, it is anticipated that this will take place late in 2021.
➢ Any change would then potentially be introduced in April 2022 subject to receiving parliamentary assent.

To be clear, the CWU policy and the commitments contained in our Four Pillars Agreement is to protect and promote the 6 day USO. Equally, whilst the Regulator and the Government may recommend changes to the Regulatory Framework and the USO, it has to be cleared through parliament.

I trust that this LTB has provided colleagues with a brief update on where the National Postal Officers and RMG are currently in the talks as well as an insight into how complex these negotiations are.

We will be back in negotiations again today and further updates will follow.

It is essential that our members are briefed on the contents of this LTB and further updates will be issued in due course via our various communications channels and social media forums.
In closing, to be absolutely clear, no roll out of revision activity, trials or machine moves has been agreed at this stage.

Terry Pullinger
Deputy General Secretary (Postal)

Royal Mail Review of Future Catering Provision

Further to LTB’s 427/20 and 441/20 Branches and representatives are informed that in parallel with the formal TUPE consultation activity with Quadrant/Compass Group, the department has also been in discussions with Royal Mail Group in respect of how any material adverse effects for our Quadrant members can be addressed as a result of their decision to dissolve the catering Joint Venture.

In this regard the department has had serious concern around the impacts on pension entitlements for those long standing Quadrant employees who have remained in the Royal Mail Pension Schemes, as this is not considered “in scope’ with regard to TUPE Regulations.

Historically at the time of the creation of the Catering Joint Venture in 1998 an arrangement was agreed on an exceptional basis, which enabled those employees who were subject to TUPE from Royal Mail (then the Post Office) to Granada and latterly Compass to continue in the RMPP.

The current RM Pension Plan rules however will not permit their continued membership in the scheme at the point of TUPE and at the point of transfer they will become deferred members of the RM Pension Plan. The department has therefore been keen to ensure that any impact on their pensions is mitigated as much as possible.

At the point of the TUPE transfer on the 1st October 2020 these employees (30 CWU Graded individuals) will be auto enrolled in the Compass Group Pension Scheme ‘CRISP’. Under the Compass Pension Scheme the employer will match the contribution rate paid by the employee up to 6%. This falls below the employer contribution rate that is paid in the Royal Mail Pension Scheme and as such it has been recognised this will have a detrimental impact on these particular individuals. Following extensive discussions RMG have therefore agreed that they will top up the Compass employer contribution rate by 7%. This means for those employees who pay the maximum employee contribution rate of 6% the employer contributions will be 13% instead of 6%.

It should be noted that this arrangement is applicable only to those individuals who are currently members of the RM Pension Scheme. However should the affected individuals choose to opt out of the Compass Pension Scheme ‘CRISP’ they will then be auto enrolled in the Government Nest Scheme and the RMG top up will not be applied. Employees who are currently aligned to Compass Pension arrangements will continue to benefit from existing arrangements and the transfer will not require

a change of scheme or change to the level of benefits. Employees in the NEST Government Scheme will continue as normal and this will be governed by Government legislation.

While the 13% does not quite match the RMPP contribution level anticipated when the new RM Pension plan is introduced (13.6%), the department believes that it does go a long way to mitigating the impact on the individuals affected by the dissolution of the Joint Venture and is the best position which could be reached through negotiation, which has been endorsed by the Postal Executive.

Royal Mail have however indicated that their position is that uprating of employer contributions would be for a period of 2 years. The CWU’s aspiration is that the uprating should be applied for a longer term and/or with a review and as such we have made strong representation in this regard. The issue will be subject to further discussion with the business and Branches and representatives will be updated as soon as further information is available.

RMG have also provided the following information in respect of those individuals who are currently in the Royal Mail Pension Plan:

Members will automatically be written to by PSC around 4 to 6 weeks after leaving service to advise them of preserved pension benefits. If they want to contact the administrator before then, they should contact the Pensions Helpline on 0345 603 0043. The only exceptions are: 

 If they are over 60 at LDOS, NRA 60 benefits (earned up to 31.3.2010) will come into payment automatically from that date; and 

 If they are over 65 at LDOS, NRA 65 benefits (earned after 1.4.2010) will come into payment from that date (together with NRA 60 benefits if not in payment already). 

Members aged 55 or over can put benefits into payment on a reduced basis. If they want to apply, they should contact the Pensions Helpline. 

All other Quadrant employees currently aligned to the Compass Group Pension Scheme will continue to receive the 6% employer contributions from Compass Group.

In addition to the above the department has also been seeking to ascertain with RMG whether the opportunity would exist for Quadrant members to transfer into a RM role. This has proved difficult as RMG advised that due to time available the ability for them to process any applications would in all likelihood exceed the 1st October TUPE transfer date. As part of the TUPE consultation, Quadrant have made employees aware of the opportunity to transfer and the department has been actively assisting members in exploring transfer opportunities in Royal Mail where an interest has been expressed. Royal Mail have agreed that should any Quadrant employee apply for a vacancy in Royal Mail by 25th September 2020 with a start date on or before 23rd October 2020, on an exceptional basis they will be able to maintain their continuity of service. It should be noted that all other terms and conditions would be based on those of a new starter in RMG.

Colleagues will also be aware our Quadrant members also received the allocation of Christmas Stamps enjoyed by their Royal Mail colleagues and we had requested that this benefit was continued by Royal Mail. While Royal Mail have indicated that they are unwilling to continue to fund this benefit on an ongoing basis, they have agreed that they will issue stamps to all current transferring Quadrant employees for this year only in recognition of the contribution they have made during the Covid crisis. Eligibility to receive the stamps will be that Quadrant employees who have transferred to Compass Group must be in post when the stamps are issued. This benefit will not be extended to any new employees recruited by Compass Group for the Royal Mail contract after the date of transfer.

The protracted contract negotiations between RMG and Compass Group have resulted in the department having to deal with the TUPE consultation process and associated representations to RMG in what has been an extremely tight timeline. We do believe however that to date we have managed to mitigate as

much as possible the material impact to our Quadrant members and provide some assurance around their future employment.

Any enquiries in relation to this LTB should be addressed to Davie Robertson, Assistant Secretary, email: dwyatt@cwu.org quoting reference: 311.02

Yours sincerely

Davie Robertson 

Assistant Secretary

20LTB458

POST OFFICE: 41 PROPOSED JOB LOSSES ACROSS ADMIN AND SUPPLY CHAIN – AGREED PREFERENCE EXERCISE

Further to LTB454/20 dated 16th September 2020.

Branches will be aware the Post Office announced earlier this week c.41 potential job losses amongst CWU Represented grades across a number of sites/locations in Admin and Supply Chain.

Following the first formal consultation meeting on Tuesday, we wrote to the Post Office seeking further clarification on various aspects of the proposals and also to provide management with feedback (received via our Reps and members) following the briefings to members on Wednesday morning.

A further meeting is being arranged to continue our negotiations; however to be clear, we have not agreed these proposed job losses. What has been agreed is the non-binding VR preference form in line with MtSF. The preference form is being provided to members in the affected areas from today and the closing date is Friday 2nd October. The agreed form and associated Joint Statement to support the preference exercise is attached to this LTB for your information.

Further information will be provided in due course. In the meantime, if members have any questions relating to the preference exercise, they are encouraged to contact their Representative in the first instance.

Yours sincerely

Andy Furey
Assistant Secretary

Attachment 1: 20LTB457- Post Office – 41 Proposed Job Losses Across Admin and Supply Chain – Agreed Preference Exercise

Attachment 2: CWU Joint Preference Form_

CWU Submission to BEIS Committee on Post Pandemic Economic Growth

The purpose of this LTB is to circulate a copy of the submission produced by the Research Department to the BEIS Select Committee inquiry on Post Pandemic Economic Growth, which has been agreed by the NEC.

The inquiry is looking at the options available to Government to secure our economic recovery from the impact of Covid-19, covering investment, industrial strategy, jobs, skills, and sustainable growth. The document calls for a number of measures in line with the CWU’s labour market and economic policy objectives, including:

• A new deal for workers with a significant improvement in employment standards and workplace rights.
• An end to insecure employment and poverty rates of pay, backed up by a genuine commitment to labour market enforcement.
• Investment in the UK’s communications infrastructure and a Government commitment to genuinely universal full-fibre broadband access and the continuation of a high quality universal postal network.
• A better recovery from the coronavirus pandemic to create a stronger, fairer, greener economy and to stop mass unemployment, in line with the TUC’s ‘Better Recovery’ proposals.

The union has been pushing these issues independently and through the TUC with the government over the summer and with motions to TUC Congress on a new deal for workers and a democratic economy which were attached to LTB 442/20.

We are holding a session on a New Deal for Workers at the CWU engagement event and will be communicating with branches about the next steps for the campaign and our wider political demands following this.

Any queries on the contents of this LTB should be addressed to jdunn@cwu.org.

Yours sincerely

Dave Ward

General Secretary

20LTB456 CWU Submission BEIS Committee on Post Pandemic Growth 2020

CWU Submission to BEIS Inquiry Post-Pandemic Economic Growth

CWU Submission to HM Treasury and UKSA on Reform of the RPI

The CWU has made the attached submission to the HM Treasury and UK Statistics Authority (UKSA) consultation on reform of the Retail Prices Index (RPI) methodology, which has been endorsed by the NEC.

UKSA has recommended that the methodology used for CPIH (Consumer Prices Index including housing costs) is imposed on the RPI, saying this will make RPI more statistically robust.

The CWU’s submission opposes UKSA’s proposal, arguing that RPI is the most suitable measure of inflation for assessing the rising cost of living for working households.

CPIH is typically lower than RPI, and the formula used in CPIH has been criticised for downward bias.  The proposal could therefore put at risk the ability of trade unions to secure pay settlements that reflect the actual rise in the cost of living experienced by working households.  The change is also expected to significantly reduce the value of Defined Benefit pensions, two thirds of which are currently uprated each year in line with RPI.

As agreed by the NEC in endorsing this submission, the CWU will consider all potential avenues to put pressure on the Government to reject the UKSA proposals, including campaigning and lobbying with the TUC and other organisations who oppose the change to RPI.

Any enquiries in relation to the content of this LTB should be addressed to the Head of Research (email: btaylor@cwu.org).

Yours sincerely

Bill Taylor

Head of Research

LTB 455-20 CWU submission Treasury and UKSA on RPI reform 2020

CWU Response to Treasury UKSA RPI Consultation 17 August 2020