LTB 176/26 – Incentive Scheme for Delivery Units

[POSTMAN]

https://www.cwu.org/ltb/ltb-176-26-ince ... ery-units/

LTB 176/26 – Incentive Scheme for Delivery Units
No. 176/26

17th June 2026

Dear Colleague,

Incentive Scheme for Delivery Units

In July 2025 members endorsed both the Rebuilding Royal Mail Part 1 and Part 2 agreements. Part of the commitments within the agreement was for an incentive bonus scheme to be agreed.

Talks began last year on how these schemes would work. The talks within the delivery operations were guided by the following principles:

• That the scheme would be self-funded.

• That it would be based on the opportunity to receive a bonus payment if the cost per item for an individual unit is reduced.

• That the criteria for achieving the bonus would be based on an individual unit’s own budget and quality.

We have tried to make the scheme simple to understand. The principle is that if the local unit reduces the cost per item through either increased traffic or improvements in productivity/efficiency, then a bonus will be paid. The Terms of Reference (TOR) attached explain how the incentive bonus scheme will work. A more detailed brief of the scheme will be published for reps and managers in due course.

The scheme ensures that 30% of the bonus is guaranteed simply by reducing the unit cost per item. The remaining 70% is linked to quality based on the current unit’s quality performance.

The national agreement reached on USO reform, as agreed within section 2.7, is as follows:

• 2.7 Delivery Site Incentive Scheme

• RMG and CWU will introduce a new Delivery Site Incentive Scheme in delivery units following each site’s USO go-live date.

• The terms of this incentive scheme will be agreed and self-funded on an adjusted cost per item model, based on an individual unit-specific cost, to the timelines agreed by the working group.

• The scheme will not jeopardise resourcing to workload, or the outputs of the mandatory weekly resourcing meetings which is an absolute necessity under USO reform. Neither will it quicken nor change the mandatory review post-deployment, nor change the job security guarantees.

• The delivery incentive scheme will be reviewed following USO Deployment.

• Further talks on similar schemes in processing and other parts of RMG will continue with the aim of reaching an agreement in line with the commitments set out in Section 5.

Currently there are 26 units across the UK which have so far deployed DM26 and they are:

Alresford, Bakewell, Barnard Castle, Brampton, Campbeltown, Charlton, Clarkston, Duns, Garston, Grange Over Sands, Hebden Bridge, Irlam, Keswick, Lingfield, Longridge, Manchester Noth, Manchester South East, Marple, Mossley Hill, Petworth, Portland, Ripley, Rossendale, Runcorn, Shepperton, St Ives TR

All of these units are already within the incentive scheme, backdated to their deployment date. All units will enter the scheme from day one of their deployment.

The important principle is that whenever a unit falls below the office budget for any quarter, our members will receive a payment. Previously this reduction would have gone back to Royal Mail.

It should also be noted that during the first period after USO deployment, the old pre-USO budget will remain in place, providing a real opportunity for our members to receive a bonus payment.

There are plenty of safeguards within the scheme, including an ongoing review, a governance structure, an escalation process, and safeguards for the Road Traffic Accident (RTA) process.

We are holding a call with the 26 units on Thursday 18th June to brief the local reps and managers of the 26 DM sites. A further briefing is scheduled for the Area Delivery Reps of the 26 DM sites. Similarly, we will be holding a briefing for Divisional Reps on 18th June.

It is the intention to hold a national online briefing on USO in the next two weeks, during which we will also explain the incentive scheme.

This is the first nationally agreed incentive/bonus scheme since PBS (Performance Bonus Scheme) in 2000. This scheme will allow our members within deliveries to potentially receive a quarterly bonus.

Further negotiations will now commence on reviewing how incentive schemes can be introduced across other parts of the Royal Mail Group.

Finally, I would like to place on record my thanks to the following Postal Executive members Owain Beaumont, Darren Glebocki, Steve Halliwell, and Ally Macleod South East Divisional Rep, for their hard work and support in achieving the agreement. I would also like to thank National Officers Davie Robertson and Tony Bouch.

Any enquiries relating to the content of this LTB should be referred to the Deputy General Secretary (Postal) department hford@cwu.org.

Yours sincerely,

Martin Walsh
Deputy General Secretary (Postal)

[Valentina@1]

“commit to deliver “….disguised as a bonus scheme

[ted_e_bear]

“commit to deliver “….disguised as a bonus scheme

Probably, if it's based on coming in under budget then like always the easy duties will have no issues but the longer ones obviously will....what's that you say.....teamwork help each other out.....don't be so f***ing stupid the big duties will be criticized for holding the office back from getting the bonus.

[Playmail]

But they can't afford the uplift in terms and conditions for new starters

[Jefferson Starfish]

But they can't afford the uplift in terms and conditions for new starters

Whatever payments are made with this scheme will be a drop in the ocean compared to increasing wages for new starters.

[clashcityrocker]

But they can't afford the uplift in terms and conditions for new starters

The scheme is self funding.
You get a share of savings.
There isn't any new money.

[oypostie]

No indication here as to what level of payment they are expecting staff to earn. Cynical moi suspects it won't be worth the hassle

[Valentina@1]

How much do we think it be per quarter?

£500-£1000?

Anyway,MW has been on here many times saying they break even at best next couple of years

Where’s the money coming from,this don’t add up

[Delbhoy]

was there not something like this about 20 odd years ago ?? what ever savings were made some were put in a staff pot rest to rm. fell on its a@se if I remember

[SMS1969]

No indication here as to what level of payment they are expecting staff to earn. Cynical moi suspects it won't be worth the hassle

My manager reckons it’s £500 per person.

[toonshola]

Prediction, whole office must absolutely break their backs for 16 weeks straight, if one day the target isn’t met then the clock resets and any savings accrued during that time gets split between Ward and Kretinsky. Around 7 offices nationally will hit the magical metrics needed and each postie will receive a HUGE £17.63 before deductions. Payment will not be pensionable and pro rata for part time employees. New entrants will recieve their bonus in the form of my bundle coupons which in turn can’t be used due to vague ramblings of minimum wage blah blah blah.
Ok I’m joking about the Ward and Kretinsky bit but the rest won’t be far off I guarantee it.

[clashcityrocker]

Prediction, whole office must absolutely break their backs for 16 weeks straight, if one day the target isn’t met then the clock resets and any savings accrued during that time gets split between Ward and Kretinsky. Around 7 offices nationally will hit the magical metrics needed and each postie will receive a HUGE £17.63 before deductions. Payment will not be pensionable and pro rata for part time employees. New entrants will recieve their bonus in the form of my bundle coupons which in turn can’t be used due to vague ramblings of minimum wage blah blah blah.
Ok I’m joking about the Ward and Kretinsky bit but the rest won’t be far off I guarantee it.

The 7 offices nationally will all have London postcodes.

[yellowbelly]

......We have tried to make the scheme simple to understand.........

Ha, ha, ha. We'll never know the in's and out's of it. Smoke and mirrors.

'Sorry people, you didn't work hard enough, no bonus this quarter'.

[tramssirhc]

The CWU said that it was unacceptable that workers doing the same job anywhere in the UK would face different rates of pay because of their geographical location. Lo and behold the CWU agree a payment scheme based on location thereby agreeing a different rate of pay for every single workplace in the UK. How much more are CWU members going to put up with before they get rid of Ward, Walsh and the whole executive. These people do not care about you.

[goldy2007]

“commit to deliver “….disguised as a bonus scheme

Commit to deliver is a horrific prospect

But would surely be illegal as in if you did work 9ver then for whatever reason bonus was denied

You’d be working for below minimum wage if some 8nstances