Royal Mail Group Negotiations – Update for CWU Members

[Mr Rush]

If he just wanted GLS then why's he messing about trying to force though ODM at RM as soon as the sales gone through?

The ball got rolling with the ODM as soon as it appeared certain that DK's takeover was going to be waived through. I suspect the deal was that letting DK have RM avoided the supposed imminent oblivion that would require government intervention (the public purse is empty) in exchange for a prompt reduction in service.

[TopperGas]

The 4% pay rise backdated to April offered so far hardly sounds groundbreaking by the EP Group? Either the CWU are treating us like idiots suggesting things will change under the EP Group, or they are idiots themselves for believing things will change.

I can't see increasing our hourly rate by around 50p an hour is going to attract or retain staff, particularly when our workload doubles later this year.

What worries me is if they’re offering 4% and virtually agreeing to equalisation of terms and conditions do they want Sunday working for all rather than new starters and volunteers only.

And so it should… but also a Sunday attendance should mean a better pay rate.

One Sunday in twelve+ for everyone is better than one in three just for new entrants. Equalising t&c’s should mean exactly that.

New starters agreed to work Sundays when they accepted the job, legacy employees have never agreed to work Sundays.

[menditsa]

The 4% pay rise backdated to April offered so far hardly sounds groundbreaking by the EP Group? Either the CWU are treating us like idiots suggesting things will change under the EP Group, or they are idiots themselves for believing things will change.

I can't see increasing our hourly rate by around 50p an hour is going to attract or retain staff, particularly when our workload doubles later this year.

What worries me is if they’re offering 4% and virtually agreeing to equalisation of terms and conditions do they want Sunday working for all rather than new starters and volunteers only.

And so it should… but also a Sunday attendance should mean a better pay rate.

One Sunday in twelve+ for everyone is better than one in three just for new entrants. Equalising t&c’s should mean exactly that.

New starters agreed to work Sundays when they accepted the job, legacy employees have never agreed to work Sundays.

New starters had the wool pulled over their eyes regarding job description and actual contract which many did not check, I did.

[clashcityrocker]

Great post which pretty much sums up the lies we are being fed

No one pays billions to buy a 'dying' business on it's last legs

Except he hasn't bought a dying business.
He has bought IDS.
So it isn't a great post as the starting point of the argument is a misunderstanding of the current situation.

[tramssirhc]

The CWU fully believes it's a dying business - "if it doesn't change it's finished " - Dave Ward.

[Valentina@1]

The CWU fully believes it's a dying business - "if it doesn't change it's finished " - Dave Ward.

At this point,think it’s pretty clear they just an extension of management.

Sad times

[tramssirhc]

The CWU fully believes it's a dying business - "if it doesn't change it's finished " - Dave Ward.

At this point,think it’s pretty clear they just an extension of management.

Sad times

The Certification Officer should revoke their independent trade union status.

[postslippete]

Except he hasn't bought a dying business.
He has bought IDS.
So it isn't a great post as the starting point of the argument is a misunderstanding of the current situation.

IDS is RM plus GLS. One is a declining, overburdened public service hollowed out by restructuring; the other is a profitable parcel business.

Kretinksy didn't buy IDS because he loves delivering birthday cards - he bought it because it's undervalued on paper but rich in assets with property, infrastructure and a built-in parcel network. The original post isn't wrong. I simply pointed out that no one spends billions without expecting a return because these investors aren't here to preserve public services.

Maybe it's speculative and I genuinely hope I'm wrong, but it's not far-fetched to think the return comes from squeezing the workforce, breaking up the business or selling off the assets. That, in my view, is not a misunderstanding or some wild theory but a well used strategy. Just look at Debenhams, Toys "R" Us, Maplin and Comet: all bought for their assets, gutted through restructuring and debt loading and then left to collapse. Even big names like Cadburys promised job security only to close plants and break up operations within a year.

The fact that Ofcom and even our own union appear to have accepted reforms to the USO suggests that stripping down the service is now legally easier and right now, there's no political will to re-nationalise RM or meaningfully challenge this direction.

[Ren Hoëk]

Anyone got any insight what so ever into what is actually happening with negotiations? Im starting to think the CWU have s**t the bed. Gone radio silent now. Which I suspect is because they kept giving deadlines which kept moving. Which suggests things arent looking good.

Considering they said they would like to reach an extensive agreement by the 5th of June almost suggested they were there. And yet here we are.

Were they not working tirelessly over the weekend to present something to the board on Monday?

[postslippete]

The ball got rolling with the ODM as soon as it appeared certain that DK's takeover was going to be waived through. I suspect the deal was that letting DK have RM avoided the supposed imminent oblivion that would require government intervention (the public purse is empty) in exchange for a prompt reduction in service.

Aye, you've certainly got your finger on the pulse! Framing RM as too expensive to save allows politicians to justify any intervention, Ofcom to allow reduced obligations and the CWU leaders to say that they protected what they could. It's hard not to see the timing of ODM being implemented as anything but deliberate with little real consultation from the workforce.

[Hyrrokkin]

Except he hasn't bought a dying business.
He has bought IDS.
So it isn't a great post as the starting point of the argument is a misunderstanding of the current situation.

IDS is RM plus GLS. One is a declining, overburdened public service hollowed out by restructuring; the other is a profitable parcel business.

Kretinksy didn't buy IDS because he loves delivering birthday cards - he bought it because it's undervalued on paper but rich in assets with property, infrastructure and a built-in parcel network. The original post isn't wrong. I simply pointed out that no one spends billions without expecting a return because these investors aren't here to preserve public services.

Maybe it's speculative and I genuinely hope I'm wrong, but it's not far-fetched to think the return comes from squeezing the workforce, breaking up the business or selling off the assets. That, in my view, is not a misunderstanding or some wild theory but a well used strategy. Just look at Debenhams, Toys "R" Us, Maplin and Comet: all bought for their assets, gutted through restructuring and debt loading and then left to collapse. Even big names like Cadburys promised job security only to close plants and break up operations within a year.

The fact that Ofcom and even our own union appear to have accepted reforms to the USO suggests that stripping down the service is now legally easier and right now, there's no political will to re-nationalise RM or meaningfully challenge this direction.

Again 100% nailed on correct

This is exactly how these spivs work
RM always plead poverty all with the help of the CWU who know exactly what they are doing.

[Perseus]

What this shows is that the CWU are unable to negotiate on multiple things at once, in a timely manner. Why are we, yet again, going into a pay negotiation with a long list of demands with things ranging from sick pay, uso reform, levelling up contracts, VR, reducing agency.... The list goes on. I don't know any other workforce that has to go through this yearly. Trying to do too much at once, this is the result.

[TopperGas]

What this shows is that the CWU are unable to negotiate on multiple things at once, in a timely manner. Why are we, yet again, going into a pay negotiation with a long list of demands with things ranging from sick pay, uso reform, levelling up contracts, VR, reducing agency.... The list goes on. I don't know any other workforce that has to go through this yearly. Trying to do too much at once, this is the result.

It's baffling why the CWU couldn't just negotiate a pay rise once the new owners were in place, then spend the next few months discussing all the other list of demands, as if an agreement isn't reached this week following the new board's meeting these discussions could now drag on for months, with no real pressure on the board as they know full well industrial action seems very unlikely.

[kazardaimenu]

Yeah it does seem as if they try and package a lot of issues into what should be pay talks. Can we just take a 4% bump now and go from there?

[Rick91]

Except he hasn't bought a dying business.
He has bought IDS.
So it isn't a great post as the starting point of the argument is a misunderstanding of the current situation.

IDS is RM plus GLS. One is a declining, overburdened public service hollowed out by restructuring; the other is a profitable parcel business.

Kretinksy didn't buy IDS because he loves delivering birthday cards - he bought it because it's undervalued on paper but rich in assets with property, infrastructure and a built-in parcel network. The original post isn't wrong. I simply pointed out that no one spends billions without expecting a return because these investors aren't here to preserve public services.

Maybe it's speculative and I genuinely hope I'm wrong, but it's not far-fetched to think the return comes from squeezing the workforce, breaking up the business or selling off the assets. That, in my view, is not a misunderstanding or some wild theory but a well used strategy. Just look at Debenhams, Toys "R" Us, Maplin and Comet: all bought for their assets, gutted through restructuring and debt loading and then left to collapse. Even big names like Cadburys promised job security only to close plants and break up operations within a year.

The fact that Ofcom and even our own union appear to have accepted reforms to the USO suggests that stripping down the service is now legally easier and right now, there's no political will to re-nationalise RM or meaningfully challenge this direction.

Really well said. The Guardian had reported this in an article in December:

"The value of the company’s freehold properties is pegged at £1.845bn, according to its latest annual report, before factoring in the value that could be unlocked by securing development consent on the most desirable plots."

The assets in property alone are deemed to be worth just over 50% of what DK purchased IDS for. With planning permission the value would no doubt be much higher.

However, I am cautiously optimistic that DK is committed to Royal Mail for now. His desire to get parcel lockers rolled out demonstrates investment in the network. That's not to say it will reflect positively on the workforce, as I agree the workforce will be squeezed.

If he can't achieve the profitability he wants then I can envisage the breaking up the business scenario you described.

I expect in the next couple of years we'll see the direction RM is likely to be heading in.