This is an article written by Peter Hain MP.

“A single purpose company with no shareholders and that is run solely for the benefit of customers”.

This to me sounds exactly like what a privatised Royal Mail should be. The sentence is taken from the website of Glas Cymru/ Welsh Water and describes how they have operated since 2000. I have already suggested to Vince Cable when questioning him in the Commons that this be the kind of business model taken on by Royal Mail. It is perfectly compatible with the Tory-Lib Dem Postal Services Act and successfully combines social obligations and commercial imperatives. There is nothing that I can see in the legislation that would prevent it from establishing an alternative company structure such as a Company Limited by Guarantee that was used by Network Rail and Welsh Water.

On top of which, such a model would raise capital more cheaply, without contributing to Government debt. As a “not for profit” company, all Welsh Water’s financial surpluses are reinvested in the business. Welsh Water has the highest credit rating in the sector which enables it to borrow money cheaply to finance investment. Welsh Water find it cheaper to raise capital because they are not caught up in the usual speculator driven, takeover vulnerable, merry go round. And under the terms of its licence Glas Cymru may not operate in sectors other than water, just as Royal Mail would be restricted in its operations.

There is no public appetite for privatisation and there is certainly not appetite for it among Royal Mail employees. In fact a July YouGov poll showed that 67 per cent of the public are opposed to privatisation of Royal Mail and only half of the remaining 40 per cent actually support it. The public fears price rises and a less efficient service. Welsh Water has made a success of its service and kept prices relatively reasonable because profit is not the driving force. It also has a good record on investment and customer service.

Definitely a model that Labour should pledge to implement in our election manifesto.

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Former Labour Cabinet Minister Peter Hain is MP for Neath

Youcan also read this article on LabourList.

67% of public opposed to privatisation in YouGov poll
Taxpayers’ cash being used to flog profitable national asset
Government failing to explore alternative options
Responding to the invitation by government today (Wednesday) for UK stockbrokers and share dealing services to apply to act as Intermediaries in the privatisation of Royal Mail, CWU accuses the government of ‘privatisation at any cost’.

A YouGov poll* carried out last month showed that 67% of the public are opposed to privatisation of Royal Mail, with only 20% in support. In addition, 79% feared that prices would rise and 47% believed the service would get worse under privatisation. Only 4% thought prices would decrease and 13% thought services would improve.

The government has also this week appointed advertising agency Engine to run its publicity campaign. The cost of this to the taxpayer is not yet known.

Billy Hayes, CWU general secretary, said: “The government is splashing taxpayers’ money on a deeply unpopular privatisation programme. Royal Mail made £403 million profit last year and is a national asset valued by the public. More than two thirds of the public are against privatisation – that’s a clear majority in any system.

“There is no argument for privatising Royal Mail. Plenty of alternative models exist to address the concerns which government has raised – for example raising capital which could be done along the lines of Network Rail which doesn’t affect national debt. This government is obsessed with privatisation at any cost.

“The government should drop this expensive and unpopular policy.”

*YouGov surveyed 1,779 UK adults between 8th and 9th July 2013. View the full YouGov survey results in full.

The purpose of this LTB is to explain how the Union will implement the Amendment to Recommendation 2 which was carried at the Policy Forum and means the Union are now in direct opposition to World Class Mail. 
 
Initially we are asking Branches not to take any premature action on this policy before the Postal Executive has met next Tuesday and we have also had the opportunity to meet with Royal Mail on Wednesday 7th August 2013 to inform them of the decision. 
 
The CWU is committed to implementing this policy but we must do so on a consistent basis and in a manner that does not lead to unnecessary conduct or suspension issues, or even allegations of Unofficial Industrial Action.
 
The Union is facing major challenges and in carrying the policy it was clearly understood that the objective was not to allow World Class Mail to distract us from the key issues that will determine the future.
 
Please ensure that all Representatives within your Branch are aware of the content of this LTB.  Further information will follow in due course.
 
Any enquiries on the above LTB should be addressed to the DGS (P) Dept.

The Communication Workers Union today (Tuesday) welcomes the Defra consultation on sentencing for dangerous dog offences and hopes that tougher and more consistent sentencing will be brought in.

The consultation runs from 6 August to 1 September 2013 and can be found online on the Defra website. CWU is encouraging all branches and affected members to participate as the results of the consultation will be used to inform the recommendations put forward in the Anti-Social Behaviour, Crime and Policing Bill.

Dave Joyce on BBC News this morning (Tuesday)
Dave Joyce, CWU national health and safety officer, said: “Current sentencing arrangements do not match the serious nature of offences. 16 people have been killed in dog attacks since 2005 by dogs and a quarter of a million people are bitten by dogs in the UK every year, yet the maximum prison sentence is just two years and a £5,000 fine. Only one person has ever been imprisoned for a dog attack on a postal worker when the postman was nearly killed but the sentence was just four and a half months. As the number of dog attacks and number of fatalities continues to grow – sentencing must get tougher to deal with irresponsible, negligent dog owners.”

CWU represents the largest number of dog attack victims – postal workers and telecom engineers who suffer 5,000 dog attacks each year. The union warmly welcomes the consultation and hopes that tougher sentencing arrangements will be part of the package of important dangerous dogs law changes later this year which includes extending the law to private property, introduction of Dog Control Notices, compulsory microchipping and extended police dog seizure powers.

“This consultation is very welcome and hopefully indicates the government is serious about tackling the problem of irresponsible dog ownership” said Dave. “We want to see tougher sentencing, better enforcement and greater consistency in sentencing. At the moment people are being handed vastly different sentences for very similar crimes, with one person receiving a suspended prison sentence while another walks away with just a £100 fine.

“Current arrangements are simply not good enough and the punishments do not fit the crimes. We would draw comparisons with driving offences where causing grievous bodily injury by dangerous or inconsiderate driving has a maximum prison sentence of five years and an unlimited fine plus automatic disqualification and causing death by dangerous driving has a maximum prison sentence of fourteen years. We want to see something similar for serious dangerous dog offences, given the devastating effect that dog attacks can have on peoples’ lives. Irresponsible dog ownership causes injury and distress to thousands of our members, others workers, children and the public alike – it must be tackled.”

CWU has been campaigning for changes to dangerous dogs laws since 2007. The union’s Bite Back campaign has the support of major animal charities, enforcement agencies and businesses. During this time the campaign has resulted in dog control law changes in both Scotland and Northern Ireland, and Wales was about to legislate until Westminster brought forward these proposals earlier this year.

2nd August 2013

Moya Greene’s package 72 times the average pay of a postal worker
Additional bonus due of £488,000
CWU calls for alternative business model to tackle excess

Responding to the publication of remuneration details for Royal Mail executives today (Friday), the Communication Workers Union criticises the company paying £1.47 million to Chief Executive Moya Greene as “imitating private sector excess”.

The report published today shows that Moya Greene took home a total of £1.47m for 2012-13, up more than a third from the previous year when she took home £1.1m. This is 72 times the average wage of postal workers. The report also shows on page 53 that Moya Greene is due an additional £488,000 payment from her long-term scheme in respect of the 2012/13 results. This is a further 24 times a delivery postman or woman’s wage taking her total payment for that year to almost 100 times the average postal worker’s pay.

Moya Greene and senior executives Mark Higson and Matthew Lester all receive a cash supplement equivalent to 40% of their salary in lieu of pensions. This is at the same time that the company wants to make changes to postal workers’ pensions.

The 12 Royal Mail executive directors shared pay and packages totalling £3,753,000 last year.

Dave Ward, CWU deputy general secretary, said: “Ordinary postal workers will be appalled at this excessive, inflation-busting increase in bonuses for Moya Greene. It appears the company is adopting early the private sector penchant for higher prices and massive executive pay and bonuses.

“This executive pay and bonus excess wouldn’t happen under our alternative business model, which we believe needs to be looked at more urgently than ever. Excessive executive pay would get worse under privatisation, not better, so we want to see healthy alternatives which keep the company in public ownership. Making Royal Mail a ‘not for dividend’ company where profits are reinvested back into services would be a better model than old-fashioned privatisation which has lead to soaring prices in other industries.

“These pay and bonus figures make Royal Mail’s below-inflation pay offer look even more insulting than it was originally. The management are clearly out of touch with not only their own workforce but also with public opinion. Front-line workers are being squeezed everywhere with inflation and living costs overtaking the value of their pay. But those in the ivory towers of board level continue to award themselves eye-watering sums of cash. Government should act to curb this blatant hypocrisy on pay.”

Alternative business model

CWU believes an alternative to privatisation must be considered by government. At this week’s CWU policy forum, CWU reps agreed the following principles for an alternative model:

The Royal Mail Group should be a ‘not for dividend company’ with profits reinvested back into services and the workforce. It would operate for public good, balancing its social obligations with commercial opportunities.
The company would be able to access capital by borrowing on the commercial markets without this contributing to Government debt. Network Rail is a perfect example of this. By creating a new Board structure it has been able to borrow over £27 billion in recent years. A fully modernised Royal Mail with proper employee alignment will also be able to self finance some of its own investment. Neither the Government nor the company can put forward any rational argument as to why this type of structure could not access capital.
There would be a company charter set out in legislation that would confirm Royal Mail as the USO provider and act as a locking mechanism against any further attempts to alter the structure of the company. The charter would set out a list of ethical principles and values that the company would be bound by, including its approach to employee and industrial relations.
There would be an overhaul of the governance structure and the main Board representatives would be balanced between appointees with social, commercial and ethical responsibilities. The Unions could nominate a small number of Board members, but not from within their organisations.
The company would implement the High Pay Commission recommendations with a fixed pay differential between what Board members, Senior managers and the workforce earn.
The company would operate single status benefits from the top to the bottom. Incentive schemes would relate to a fixed percentage of people’s overall salary.

The Communication Workers Union has today (Thursday) agreed to hold a national strike ballot of Royal Mail workers unless protections for jobs and services can be secured.

Around 500 CWU reps met at the union’s policy forum in London today and voted unanimously in favour of holding a national strike ballot in Royal Mail no later than September 2013. If the ballot goes ahead it will include 115,000 postal workers in Royal Mail (excluding Parcelforce and the Post Office) and would be the first ballot for national strike action in Royal Mail since September 2009.

Dave Ward, CWU deputy general secretary, said: “The current situation cannot go on. Postal workers are being squeezed in their workplaces, facing an uncertain future and changes to their pensions. There hasn’t yet been a pay rise for staff this year despite healthy company profits of £403 million. But most importantly, we want protections for job security and terms and conditions and these are sadly lacking.

“CWU is committed to holding serious negotiations with Royal Mail to achieve settlement on these issues, but efforts to date do not bode well.

“The company only began to seriously negotiate with us following our consultative ballot in June, which showed 99% of postal workers back the union’s position on pay, 96% are opposed to privatisation and 92% are willing to take part in a boycott of competitors’ mail and to withdraw cooperation on workplace changes.

“We do not take the decision to hold a strike ballot lightly. However, we will stop at nothing to ensure the future of our members’ jobs – and of the services they deliver – are protected.”

Wording of the policy:

“That the CWU will prioritise national negotiations along the policy lines stated. If satisfactory agreements cannot be secured, the union will hold a National Industrial Action Ballot no later than September 2013. The Postal Executive will have discretion to enact the ballot earlier in light of events, the actions of management and progress made.”

CWU reps are debated a range of issues at the two-day policy forum, including securing job protections in Royal Mail, alternative business models to privatisation, changes to pensions, and workplace pressure.

http://socialistworker.co.uk/art/33895/Unofficial+postal+strike+victory+in+Peterborough+shows+the+way+to+fight

Reps from Wessex South Central Branch headed to Southampton Mail Centre last month for a CWU recruitment and organising event aimed at increasing member participation and bringing new people into the union.

Branch secretary Martin Sheppard, women’s officer Shirley Edwards and equality officer Andy Rathbone worked with field organiser Michelle Daykin to host the day-long workshop.

All too often – in Royal Mail delivery offices particularly – the unit rep’s job can become extremely demanding, with workloads sometimes becoming unmanageable, and workplace committees can be enormously helpful in supporting the office rep, and strengthening the union’s frontline presence to the benefit of all members.

This was a key session of the day, which also focussed on recruitment drives, and membership records.

“Working together, we tailored the workshop on mapping, recruitment, communications and workplace committees,” explained Michelle, adding: “This meant that the reps could share ideas, experiences, best practice and have an opportunity outside of their workplace to think strategically about how to approach members and non-members.”

Andy said that the intention had been to provide practical ideas for “improving not just the level of membership, but also the level of activism of existing members wanting to become more involved.”

With the threat of privatisation looming over Royal Mail staff, on top of all the other major issues that postal workers are currently facing, he pointed out that “there has never been a more important time to get organised and events like this are a vital part of ensuring this.”

The prospect of private ownership of the business was also a key mobilising issue for Shirley, who said: “Recruitment is hugely important, especially in this current climate with the threat of privatisation hanging over our heads.

“This was my first attempt at part facilitating a workshop but I found it very enjoyable and informative,” she continued.

“As the old saying goes – ‘There is strength in numbers’ – and we need the numbers and the organisation to keep strong.”

Local reps John McCarthy (Totton DO) and Rob Hayhurst (Shirley DO) gave the initiative the thumbs-up. John described the workshop as “a necessity,” adding that “even seasoned reps need a refresher every now and then,” and Rob said that he found the members’ mapping exercises particularly useful.

As well as his local unit duties, Rob also serves as an area delivery rep, and he commented that other office reps had “really got into” the event and that all appreciated the potential support that the creation of effective workplace committees could provide, particularly in terms of delegating workload.

Other feedback has been similarly positive, according to branch secretary Martin, who also pointed to plans to launch regular unit-based newsletters to ensure all members are kept in touch with developments.

“Our verdict is that it was a great success,” he concluded.

“Now we all need to keep up the momentum.”

If you’re interested in becoming a unit rep, or volunteering for a workplace committee, get in touch by contacting their local branch or the field organiser assigned to their branch. Alternatively you can contact Lynn Browne, Senior Organiser Postal Department on lbrowne@cwu.org 07735776364. For more information visit Postal Workplace Organisers.

Union reps from Royal Mail workplaces across the UK will meet next week to decide on actions to protect postal jobs and services, including whether to hold a national strike ballot of all Royal Mail workers.

The two-day policy forum takes place at Logan Hall, Institute of Education, 20 Bedford Way, London, WC1H 0AL on Wednesday 31 July and Thursday 1 August. The strike ballot debate will be heard from 9:30 on Thursday morning. If passed, the CWU will then set out a timetable to hold a ballot of 115,000 members across Royal Mail Group (excludes Parcelforce and the Post Office). Around 500 reps will debate a range of issues, including securing job protections in Royal Mail, alternative business models to privatisation, changes to pensions, and workplace pressure.

Billy Hayes, CWU general secretary, said: “UK postal services are facing unprecedented change and threats. We will always embrace innovation and changes in the industry, but only on terms which maintain decent jobs and protect quality services. This policy forum is all about anticipating what may lie around the corner and how CWU can react to protect the interests of our members and customers they serve in the increasingly changing world of postal services.”

Dave Ward, CWU deputy general secretary, said: “We want to secure the best possible protections for our members’ jobs and we will stop at nothing to ensure that their future, and that of the UK’s postal services, are protected.

“The offer on job protection made by Royal Mail earlier this month wasn’t worth the paper it was written on. Patience is wearing thin and unless we can secure robust protections for jobs, pay and terms and conditions soon we are asking our reps to endorse a policy of holding a national industrial action ballot no later than September.”

Agenda for the policy forum:
Logan Hall, Institute of Education, 20 Bedford Way, London, WC1H 0AL

Policy Forum Day 1: Wednesday 31st July 2013
1200 – 1300 Registration
1300 – 1600 Pensions
1600 – 1800 Taking the Consultative Ballot Forward

Policy Forum Day 2: Thursday 1st August 2013

0930 – 1200 Taking National Talks Forward – decision on whether to hold a strike ballot
1200 – 1300 Lunch
1300 – 1430 CWU Alternative Business Model
1430 – 1600 Save our Royal Mail Campaign

Some sessions will be closed but media is welcome to attend the Forum. The Thursday morning session and vote on whether to hold a national strike ballot will be open to journalists.

Employment tribunal fees – one of the key changes to UK employment law being introduced by this government – come into force on Monday 29 July. You still have time to get your claims in, but you must be quick!

If you have a current submission you can still make it without incurring the fees by applying via the online system by 4pm Friday 26 July, or by first class post on or by the same day. You can also email or fax your forms over the weekend before 23:59 on Sunday 28 July.

A new online submission service, with the new ET1 form, will be available from Monday 29 July 2013 and the new form must be used from this date. Fees ranging from £160 to £1,200 will apply for all employment tribunals from this date. CWU will fund these fees for members whose cases the union takes on.

Tony Rupa, Head of CWU Legal Services, said: “The introduction of the fee structure will seriously restrict our members’ ability to access the tribunal system, especially those on low incomes. It’s an elitist barrier to accessing the justice system which I fear will lead to a rise in bad behaviour by unscrupulous employers in relation to unfair dismissals, discrimination and other unfair treatment at work.

“The government has simultaneously introduced fees for claimants and reduced the level of compensation awards which they could be eligible for. It’s a clear attack on employment rights in this country, which are already the weakest in Europe. As an organisation which operates to protect people at work, we will be funding these fees for our members.”

CWU funding

CWU will fund payment of the issue fee on behalf of our members who submit an ET1 application. Additionally, if the case is assessed as having the required prospects of success and subsequently authorisation is given by the Legal Department to run the case on behalf of the member, if this case progresses to a full tribunal hearing, the union will pay the hearing fee, as appropriate. This arrangement will be monitored over the coming months.

Members should be made aware that the union is not obliged to support any case unless we consider that it has reasonable prospects of success, i.e. 50% or more. Employees have the right to take a complaint of unfair dismissal or unlawful discrimination and other disputes to a tribunal provided they meet the qualifying legal conditions.

Full information regarding the changes, and advice on how to apply for a tribunal hearing, are available in LTB 498 in the members’ area of the website.

For further information on this issue, please contact Tony Rupa in the CWU Legal Services department on 0208 971 7444 or via email trupa@cwu.org.