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Pay freeze despite double profits

Apr/May 09 : POSTMANPay freeze despite double profits

24th April:A letter was sent to The CWU from Jon Millidge the Group HR Director, confirming that the Royal Mail Board has decided to enforce a pay freeze for all employees and all managers across the company.

14th May:Royal Mail announce its annual profits have almost doubled to £321m, as all four parts of the business went into the black for the first time in 20 years.

CWU:Dave Ward

The Union has told Royal Mail there is no possibility of us accepting a pay freeze. Royal Mail is using the external environment as an excuse to continue to attack our members' terms and conditions.

The Company can afford to improve our members' terms and conditions for the following reasons:

  • The company recently posted its best financial results for years and out performed all of its financial targets.

  • Royal Mail recently wrote to all employees saying the value of the company has significantly increased.

  • The Government has now accepted that it will take on the pension's legacy deficit. This will bring about an incredible transformation in Royal Mail's finances. Previously, Royal Mail signed into funding approximately £280 million per year, for the next 15 years. This money can now be released and reinvested into improving our members' terms and conditions.

  • Royal Mail has confirmed that its modernisation programme is fully funded from the previous Government loan.

  • The Company will achieve significant cost reductions as a result of the introduction of automation.

  • The Government's regulatory proposals provide the company with a great opportunity to now operate on a level playing field with its competitors and further improve its financial prospects.

  • The combination of a pay freeze and the growing attacks on our members' jobs, terms and conditions means that industrial conflict is inevitable unless Royal Mail change their position.

    • Adam Crozier

    "Our people have delivered strong financial results and high quality customer service across all our businesses in the face of extremely challenging trading conditions."

    "All four of the group’s businesses are now in full-year profit for the first time in two decades, including Royal Mail Letters, which made a small profit compared with the previous year’s loss, despite accelerating mail volume losses, which mean the business is now handling 10 per cent fewer letters and packets than a year ago."

    Donald Brydon

    "I am fortunate to be joining a Company that has performed well in the face of the recession and intensifying competition. The future will not be easy. But the progress we have made and continue to deliver gives me confidence as we tackle the challenges that lie ahead."

    Registered members can discuss this in our pay freeze thread...

    HERE

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