Update on Pensions and the Future of Royal Mail SW (Area)

[Geezer]

Update on Pensions and the Future of Royal Mail Group
25 October 2008

It is has been a very frustrating last few months. Very little has come out of CWUHQ and we have had little to tell everyone in return.

However, there has been much activity going on in the background.

There have been numerous meetings with Government Minister and with Royal Mail and with the Hooper Review Team.

All are agreed that the status quo cannot continue and in addition the Union have secured via the Labour Government a commitment NOT to privatise Royal Mail to the corporate vultures.

Recent events however mean we are still in difficulties. The “credit crunch” has put the Pension deficit up to around £4.1 billion – the next review is in March 2009. Make no mistake, if the issue isn’t sorted then RM may try to worsen the Pension Scheme again.

Please also note that we have NOT agreed the Pension arrangements. A National Ballot will be held if no revised deal based on a final salary can be negotiated. You , the members will make the final decision.

Although RM have announced profits up on last year the figures are deceiving. The investment for automation to improve efficiency has not gone in. RM have already asked for around £8 billion from Government due to the mess. Competitors continue to cherry pick vast chunks of the industry. The profit in PO Counters is not real as the Network is subsidised.

The position of one year skint , the next year ok , the following years skint and so on is thus continuing ! Crozier’s pay has now topped £8.3 million for the last 5 years and he can take a full pension after 30 years . We have to work a full 45 years to get a full pension.

The good news though is that there are indications that Government may take off RM, the pension liabilities thus freeing up cash for the industry.

The bad news is that the new Business Minister Peter Mandelson has gone public with his views on a partial privatisation. The Union have made representations to Government and we must see what happens. My own personal view is that he knew what the deal was with our Union and the Government before he arrived – he has chosen to deliberately ignore this. He should be sacked from his position.

The Hooper review will report in the next few weeks – possibly within the month and from there the real decisions will come out.

Royal Mail’s stance at present however is that they are STILL refusing to share their business plan with us. Around 14 Mail Centres are up for closure and these are likely to be balloted on strike action if nothing is sorted out.

NO Mail Centre is safe and no one should assume that fat redundancy cheques will come out if Exeter is selected. VR is at the discretion of RM and depends on them honouring agreements.

For Delivery Offices , the position is still the same – up to 1 in 3 could go in the future.

Finally, please do not assume it is all bad news ! Nationally the Union have been fighting hard for you. The stakes are very high and we are making progress albeit against fierce opposition who want to break up and flog off the industry.

Please pass on this report and encourage people to submit their email details to us. Thanks.

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Branch Secretary