Agreement:Reward:From the agreement pages 58-63

[POSTMAN]

Annex C
Transformation Lump Sum Payments and Shorter Working Week
Delivery
Applicable to all Delivery Units including SPDO’s.
Lump Sums
The payment of £1,000 (pro rata for part time employees) consisting of 3 lump sums will be paid as follows.
£200 will be paid to everyone in the delivery unit on deployment of their first non walk sequencing revision.
£600 will be paid to everyone in the delivery unit on deployment of the walk sequencing revision.
£200 will be paid to everyone in the delivery unit when the Walk Sequencing revision has been implemented, and objectives achieved in line with the local agreement and no later than the end of the 6 week bedding in period.
SPDOs
All SPDOs will receive the £600 and £200 payments in line with their parent delivery unit.
Shorter Working Week
To be implemented in all Delivery Units in line with the Walk Sequencing revision.

From the agreement pages 58-63.

Reward

Royal Mail and CWU recognise that a key part of business transformation is our commitment to provide on-going improvements to employee terms and conditions alongside changes in working practices and reflecting the success of the company.
The parties have negotiated an improved package which takes into account the following:
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That the affordability of the package should fairly reflect the scale of change and cost reduction associated with transformation and the challenging environment the business now operates within.
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Recognition that the new reward package should be linked to both the delivery of change and the impact of change on different groups of employees.
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Recognition that current Door to Door delivery and payment arrangements do not support the urgent need to drive growth in this market, protect long term employment and tackle overall volume decline.
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The need to balance a desire for long term stability with the safeguards both parties require should the external environment impact on the business in either a more positive or negative way than currently anticipated.
To provide the right environment to focus on the transformation we have reached an agreement covering a 3 year period from April 2010 to the 31st March 2013. The following reward package covers employees in CWU represented grades in Royal Mail Letters Operations, Logistics and Network, Engineers, Fleet Maintenance Services, Royal Mail International.
The reward package centres on the following areas:

Shorter Working Week

In order to share the benefits of new machinery/technology, support manageable workload and help protect jobs, the overall weekly working hours for the grades covered by this agreement will be reduced by one hour per week. This will be phased in line with the transformation plan and will be implemented locally as part of major revision activity or equivalent functional milestones. Opportunities for increased productivity will be addressed as part of the revision activity.

Guidelines will be issued to assist the local parties implement the shorter working week. Part-time employees will benefit through an increased hourly rate.
For employees in Engineering, Mail Screeners, Area Professional Drivers and Network Professional Driver grade the shorter working week will be taken exceptionally as a cash alternative. An increase in basic pensionable pay, allowances, London Pay Rate, overtime and SA rates of 2% will be paid, phased in the same manner and timescales as the introduction of the shorter working week.

Higher Basic Pay
Increases to basic pensionable pay flowing through to all allowances, London Pay Ranges, overtime and Scheduled Attendance will continue through the course of the agreement.

Family Friendly Policies
Royal Mail and CWU have agreed the need to move towards single status business wide family friendly policies. An increase is agreed in contractual maternity pay from 18 to 26 weeks and an increase in paternity pay from one to two weeks from 1st April 2010.

ColleagueShare/Lump Sums
As part of these negotiations Royal Mail and CWU have reviewed the ColleagueShare scheme. As a result the scheme has been enhanced in the following areas:
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The 2010 dividend payment linked to business results due to be announced in June has been brought forward and the dividend will now be paid on ratification of the agreement.
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The final instalment of ColleagueShares will be replaced for employees covered by this agreement, by lump sum payments including additional monies bringing the total to £1000 (pro rata for part time employees). These will be known as Transformation Lump Sums and payment is linked directly to key transformation milestones.
Additionally both parties recognise that ColleagueShares operates in a way that replaces our traditional approach to productivity and that only by reaching this agreement and working together to deliver transformation will the value of ColleagueShares be higher. The current value is £1.51 per share. They will be bought back by the company in two equal parts in 2011 and 2012.

[POSTMAN]

Delivery

Given the challenges the business is facing, the current Door to Door payment arrangements do not support the need to drive growth in this market and we have undertaken a fundamental review of this area. We have also reviewed arrangements for early shift payments in delivery. It has been agreed to cease and incorporate the total value of these payments (£52m Door to Door, and £40m delivery early shift allowance and grandfather rights) into a new permanent (non-pensionable) supplement to basic pay. This is payable to all delivery office employees directly tagged to and working in the delivery function. The supplement will increase in value as agreed in basic pay rises. It will flow through in 2011 and 2012. It will be paid 52 weeks a year at the rate of £20.60 per week, pro rata for part time employees and applies to new entrants.
Individuals in receipt of pensionable allowances incorporated into this payment will retain full pensionability of those elements on a reserved rights basis.

Mail Centres, Collection Hubs and MDECs
A new (non pensionable) supplement to basic pay to all OPGs/OSGs in Mail Centres, OPGs/OSGs in Collection Hubs (who are not eligible to receive the Delivery Pay supplement) and Royal Mail CWU grades in MDECs pro rata for part-time employees. The supplement will increase in value as agreed in basic pay rises. It will flow through in 2011 and 2012. It will be paid 52 weeks a year at the rate of £8.00 per week and applies to new entrants. It replaces the first £8.00 of any PBS/ICS residual bonus payment in the Unit. In Units where the PBS/ICS payment is greater than £8.00, the amount over £8.00 will still be paid to existing recipients. Where the existing PBS/ICS payment is less than £8.00, the shortfall is funded on an ongoing basis by using the pool of money created by the former ESOS productivity scheme. The employees eligible for this pay supplement will also receive a one-off non-pensionable lump sum payment of £75 (pro rata for part-time employees) along with the first payment of the new supplement.

The above approach uses up the pool of money created by the former ESOS productivity scheme. Hence the ESOS scheme will cease to exist and will not accrue any future money.

Regional Distribution Centres
A new (non pensionable) supplement to basic pay to all OPGs in Regional Distribution Centres (pro rata for part time employees). The supplement will increase in value as agreed in basic pay rises. It will be paid 52 weeks a year at the rate of £11.00 per week and applies to new entrants. It consolidates the equivalent value of current productivity payments.

Walk Bundling Centres
A new (non pensionable) supplement to basic pay to all OPGs in Walk Bundling Centres (pro rata for part time employees). The supplement will increase in value as agreed in basic pay rises. It will flow through in 2011 and 2012. It will be paid 52 weeks a year at the rate of £11.00 per week and applies to new entrants. It replaces the current Interim Agreement payment.

HWDC
A new (non-pensionable) supplement to basic pay for Royal Mail CWU grades at HWDC with the exception of Engineers (pro rata for part time employees). The supplement will increase in value as agreed with basic pay rises. It will flow through in 2011 and 2012. It will be paid 52 weeks a year at the rate of £20.00 per week and applies to new entrants. It replaces the current HWDC Flexibility Agreement. The flexibility terms agreed under the pay and modernisation agreement would in future apply to all OPG’s at HWDC.

Both parties agree that there may be further opportunities for pay simplification. Accordingly, national officers and functional directors are given the remit to explore this area further on a cost neutral basis during the course of this agreement.

Payment of old legacy bonus scheme payments will not be made to employees recruited on or after 1st April 2010.

Additional Local Earnings Opportunities
Royal Mail and CWU agree that excessive amounts of overtime working are not conducive to an appropriate work/life balance. This has been recognised by prioritising higher basic pay over recent years.

Within this we also agree the importance of taking into account the aspirations and needs of individual employees for reasonable and regular additional earnings opportunities. As part of local revision activity the opportunity for Scheduled Attendance and overtime will be a key consideration. Such opportunities will need to reflect overall workload and meet service requirements. Local revision proposals should consider how innovative attendance patterns and the overall resourcing mix can be constructed to support different employee needs.

[POSTMAN]

Approach to third year basic pay review

Both parties are approaching the future with a positive expectation that deployment of this agreement will ensure that transformation is delivered, leading to an improvement in company performance and a successful and sustainable future for the organisation.

Given this, there will be an increase in pensionable pay, overtime and allowances of 3.5%. This will be revisited if the average RPI for January to March 2012 is outside the expected range of 2%-3%.

Both parties also recognise that there is uncertainty in the commercial environment that may affect the business in either a positive or negative way. Against this background it is recognised that there should be flexibility to reopen this element of the agreement in response to unforeseen events which have a significant impact on the business and its employees.

Reward Summary

The following reward package covers CWU graded employees in Royal Mail Letters Operations, Logistics and Network, Engineers, Fleet Maintenance Services, Royal Mail International.

POL002.gif

April 2010. For Delivery employees a £20.60 pw permanent supplement to basic pay (pro rata for part time employees).

April 1st 2010. An increase in paid maternity leave from 18 weeks to 26 weeks and an increase in paid paternity leave from one week to two.

Additional Transformation Lump Sums totalling £1000 for employees covered by this agreement (pro rata for part time employees). Annex C gives the detailed trigger points for implementation of the lump sums in each function.

Shorter working week. One hour reduction for all employees linked to transformation and to be introduced as set out in Annex C of this agreement (for Engineering, Mail Screeners, Area Professional Drivers and the Professional Driver grade this is replaced by a 2% increase to basic pensionable pay, allowances, London Pay Rate, overtime and SA rates).

[postghost]

So am I right in saying p/t staff on 25 hours will now work 24 due to the following statement?:

the overall weekly working hours for the grades covered by this agreement will be reduced by one hour per week

[POSTMAN]

So am I right in saying p/t staff on 25 hours will now work 24 due to the following statement?:

the overall weekly working hours for the grades covered by this agreement will be reduced by one hour per week

I'm sure i read on here that that wil be no,you get a pay rise instead,but don't quote me.

[Big Daz]

FT only for SWW 40 to 39

[postghost]

So am I right in saying p/t staff on 25 hours will now work 24 due to the following statement?:

the overall weekly working hours for the grades covered by this agreement will be reduced by one hour per week

I'm sure i read on here that that wil be no,you get a pay rise instead,but don't quote me.

Is this yet another shafting for p/t staff!!

f/t staff work 39 hours but get paid for 40??

[joe712000]

it says 'part-time staff will benefit through an increased hourly rate'.

[baldrick]

Thanks for posting that POSTMAN. It's easier to read than the document on the CWU site,
which I can't seem to download now anyway.
So existing Delivery staff will still get the Early Shift Allowance protected as a pensionable allowance.
But MC staff will have the first £8 of the PBS/ICS supplement replaced by a non-pensionable supplement.
I think the PBS supplement is pensionable, but not sure about that - can anyone say for certain?

[TrueBlueTerrier]

So am I right in saying p/t staff on 25 hours will now work 24 due to the following statement?:

the overall weekly working hours for the grades covered by this agreement will be reduced by one hour per week

No

within the SWW paragraph (1/2 way through the 1st post in the thread" says

Part-time employees will benefit through an increased hourly rate.

[TrueBlueTerrier]

So am I right in saying p/t staff on 25 hours will now work 24 due to the following statement?:

the overall weekly working hours for the grades covered by this agreement will be reduced by one hour per week

I'm sure i read on here that that wil be no,you get a pay rise instead,but don't quote me.

Is this yet another shafting for p/t staff!!

f/t staff work 39 hours but get paid for 40??

No we will remain at the same weekly rate of pay but PT will get an increase in hourly rate to off set

So in essence FT will get the same pay for 1 hour less work. PT will work the same hours but get a rise in the amount paid per hour.

[ardspostie]

divide your pay scale by 39 instead of 40 to get your hourly rate its not rocket science

[rockytony67]

Thanks for posting that POSTMAN. It's easier to read than the document on the CWU site,
which I can't seem to download now anyway.
So existing Delivery staff will still get the Early Shift Allowance protected as a pensionable allowance.
But MC staff will have the first £8 of the PBS/ICS supplement replaced by a non-pensionable supplement.
I think the PBS supplement is pensionable, but not sure about that - can anyone say for certain?

The PBS supplement is not pensionable baldrick.

[OnAFlyer]

This is my favourite bit from that:

Recognition that current Door to Door delivery and payment arrangements do not support the urgent need to drive growth in this market, protect long term employment and tackle overall volume decline.

In other words, 'we don't want to keep paying you 1.67p each for them, you'll take a million for £8 and we'll keep the rest.'

[dvbuk55]

Robin Hood is alive and well and living in Wimbledon.