New Framework Agreement for Refining the Future Processing F

[TrueBlueTerrier]

LTB 830/13 New Framework Agreement for Refining the Future Processing Footprint



No. 830/2013

Ref: 730.01

Date: 11th December 2013



To All:

Postal Branches

Divisional Representatives

Area Distribution Representatives

Area Processing Representatives

RDC Representatives

Dear Colleague

New Framework Agreement for Refining the Future Processing Footprint

We are pleased to announce in this LTB that we have now successfully concluded an updated agreement on the approach to Mail Centre & RDC consultations in respect of new builds, concentrations and office closures.

The agreement (attached to this LTB) has been agreed by the Postal Executive and is therefore now the substantive document for dealing with such issues.

The Union has been trying to progress this policy of updating the 2010 Mail Centre Rationalisation Agreement since 2011. The attached agreement factors in the knowledge gained from the experiences of the last three years, it improves the context and tone of what is a very difficult issue for our representatives and members to deal with, ensures that people issues have equal status with all other priorities, it factors in greater National leadership and responsibility in the process, increases the opportunity to develop mutual interest solutions to any refinement of the Mail Centre & RDC processing footprint and reflects the new agenda for growth and industrial stability era.

Our approach to this issue has been formed by policies shaped at Conferences and Policy Forums and we are pleased that we have, in our opinion, achieved those policies and now have an agreement that carries more balanced, mature and positive language. We also believe that the agreement should enable us to move forward without the behaviours influenced by negative interpretations of the original agreement.

Whilst the challenge of dealing with the associated issues of new builds, concentrations and closures will always exist in such a rapidly changing industry we believe that this new agreement gives us a very strong foundation for meeting those challenges in a way that allows the business to flourish and our members to be fully protected through change with equal status.

Any enquiries in relation to this LTB should be addressed to Terry Pullinger, Assistant Secretary, email: dwyatt@cwu.org or lwright@cwu.org quoting reference number: 730.01

Yours sincerely





Terry Pullinger

Assistant Secretary

[TrueBlueTerrier]

FRAMEWORK AGREEMENT FOR REFINING THE
FUTURE PROCESSING FOOTPRINT

This Agreement Applies to both
Mail Centres and Regional Distribution Centres (RDCs)


1. Background

This Agreement has been made against the backdrop of the huge amount of transformation that has already taken place in respect of the processing footprint and in recognition that there will always be work to do as the business adjusts to market conditions, new products and services, along with further technological advances.

Both parties recognise that the BT2010 Agreement stated that re-structuring the Mail Centre and RDC processing footprint would be with the intention of providing a lean, fit for purpose, standardised and modern pipeline.

This Agreement updates the National Mail Centre Rationalisation Framework Agreement and supplements the RDC and progressive agenda commitments in the Network section of the BT2010 Agreement. It builds on the existing framework, strengthening good practice and applying learning from the extensive experiences of the Agreement since BT2010 was deployed. It is a positive response that unifies the approach across the whole of the processing network i.e. both Mail Centres and Regional Distribution Centres (RDCs). Furthermore, it recognises that structuring a processing footprint within the spirit and intent of the above, can involve both asset investment as well as asset utilisation. It is envisaged that the structure detailed below is fit for purpose for designing the optimum processing footprint in respect of new builds, site mergers and site utilisation across the Royal Mail network.

2. Overview

This Agreement provides the framework for a collaborative and consultative way of working between Royal Mail and the CWU on refining the future processing footprint. At the point that Royal Mail announces a review decision on the future of a particular site or sites, then consultation and negotiation, in line with existing agreements, will be used where appropriate to support deployment of the associated changes.

Both parties continue to accept that the processing operation in Mail Centres (MCs) and Regional Distribution Centres (RDCs) faces considerable challenges from increasing competition, technological substitution (email etc), downstream access and by-pass and changing mail profiles; the combined effect of which is forecast to further reduce the overall volumes. However, refining our processing footprint going forward in the light of parcel growth, dynamic new products and the ongoing uncertainty around letter volumes does not mean that the situation is all about decline.

Equally it is accepted that there has been huge progress and experience gained in the past three years which has enabled both parties to reflect upon the original agreement and enhance it in this version and broaden its scope to include the RDC network.

The following framework will continue to facilitate the on-going transformation and provide the CWU with the opportunity to input into Royal Mail’s plans, support and manage the implications in order to achieve an optimised Mail Centre and RDC network in keeping with our mutual interest approach.

In view of the above, Royal Mail and the CWU recognise that there has been a significant reduction in the overall estate but that the exact final numbers and locations will still require detailed local and national examination in line with the framework agreement.

It is recognised that when past rationalisations of the Mail Centre network and RDC network has taken place in a cost-effective way there has been a resultant reduction in jobs which has been managed in the spirit of mutual interest and supported by the terms of the MTSF Agreement, and both parties agree that this will continue to be the case.

To respond successfully to the continuing challenge we will need to ensure we have an infrastructure and network of offices that fully utilises and optimises their assets so they are sustainable in the long term, supports the integrity of the national workplan across the operations pipeline and delivers service to the customer in line with Royal Mail’s service specification.
.
3. Aims and Objectives

To maintain or improve quality of service to the customer in line with our service specification.
To ensure the mail centre / regional distribution network and infrastructure is robust.
To optimise the mail centre / regional distribution network by utilising the assets.
To ensure that the dispatch and arrival patterns support the post-transformation workplan commitments as detailed in the BT2010 Agreement, whilst also providing the capacity for a greater and more dynamic range of products and services.
To ensure that there is a meaningful and collaborative process at both national and local level that creates the opportunity for genuine input and influence on any proposed changes to the network and ensures that the views of representatives can be gained in order to inform any outcomes.
To take account of, manage and, wherever possible, mitigate the impact on employees from any changes.
To ensure the mail centre / regional distribution network and employment opportunities of both full and part-time are sustainable in the long term.
To deliver a fit for purpose, efficient and effective estate that enables the agenda for growth.

4. Success Criteria

That quality of service of traffic is maintained or improved.
That the performance of the mail centres / regional distribution centres have been maintained and improved.
That employee issues have been taken fully into consideration and dealt with in line with the appropriate national agreements, including any identified surplus.
That there has been the opportunity for full involvement of union representatives in developing, influencing and implementing any proposals for site closure.
That it helps produce a more robust mail centre / regional distribution centre network securing sustainable employment opportunities.
That all issues have been dealt with by both managers and CWU representatives at the appropriate level.

5. Joint Commitment

The impact of the rationalisation and improved cost-effectiveness of the network will result in a reduction in jobs and therefore, there is a joint commitment to the following:

Early discussion on future mail centre / regional distribution centre reviews.
There will be active participation of managers and union representatives throughout with issues being dealt with at the appropriate level.
Project timetables must include sufficient time at all stages of the process to allow meaningful consultation, discussions and negotiations with the union to take place appropriately in line with this framework.
Ensuring employees’ views and concerns are taken into account.
A shared understanding of Royal Mail’s overall mail centre / regional distribution centre strategy as it develops.
A forecast timetable for all future mail centre / regional distribution centre network reviews/changes as it develops.
Where there is sensitive information that needs to remain in commercial confidence this will be explained at the time that it is shared and both parties undertake to abide by this protocol including where necessary signing a non-disclosure agreement.
Both parties fully commit to the process.


6. The National Processing Group (NPG)

The National Processing Group will be refreshed and will meet on a regular basis and as a minimum quarterly. The group will include:

Royal Mail - The Programme Director, 2-3 Programme Managers, other level managers and other subject matter experts as required.
CWU - The Assistant Secretary Processing & Network, Postal Executive members, other representatives and other subject matter experts as required.

6.1 The role of the group will be:

To ensure ongoing strategic involvement in mail centre transformation plans.
To provide the opportunity for the union to influence these plans/objectives from an informed position.
Base data on the current mail centres will be provided to facilitate the above and discussed at the first meeting of the NPG.
To ensure shared understanding of the overall processing strategy as it develops.
To discuss the forecast timetable for any proposed future mail centre network reviews/changes.
To guide these reviews/changes in line with the agreed process.
To update CWU on progress from regional reviews.
To clear any appropriate communication that needs to be circulated from national level on the programme.

Both parties agree to ensure that the NPG agenda reflects all aspects of paragraph 6.1 of the agreement. In addition, the NPG agenda will be expanded in scope to include a review of major strategic issues, which will include progressive agenda items from both parties and a blueprint vision for mail centre operations. A progressive agenda will be driven by the processing ‘programme of work’ agreed between Royal Mail and the CWU.

6.2 Royal Mail will continue to review all of its Mail Centre estate. It is expected that the CWU nationally will receive a minimum three months notice of any potential strategic reviews that management are considering prior to any final or formal review decisions being made. This strategic session will allow for the CWU to meaningfully contribute and influence managerial thinking prior to any decisions being made. Exceptionally, however, there may be occasions when this cannot be fulfilled but consultation will still take place in line with the agreed process along with a full explanation.

6.3 In support of these reviews, Royal Mail may share Confidential Information with the CWU and its officers. Where appropriate, Royal Mail may ask relevant officers to sign and comply with the terms of a non-disclosure agreement before sharing any such information. Further, Royal Mail is not obliged to disclose Confidential Information to the CWU where to do so would put it in breach of rules made by the Financial Conduct Authority or other appropriate regulatory authority.

6.4 Reviews will be carried out on a geographical, regional and/or a site basis, taking into account the need to ensure that the national workplan and the service requirements of other parts of the pipeline can be supported, along with our mutual aims as defined in this framework.

6.5 All reviews will be planned/progressed to ensure they align to the jointly agreed aims and objectives contained in Section 3.

6.6 Sufficient time will always be provided to carry out full consultation with the CWU but it is anticipated that regions should initially plan to conclude their reviews up to the formal proposal stage within three months.

6.7 RDC consultations will be dealt with at the National Logistics Steering Group (NLSG) in line with the Engagement, Development and Planning commitments of BT2010 and the spirit of this agreement.

7. Process at Regional / Local Level

7.1 Both Royal Mail and the CWU recognise that it is important to establish the key individuals for the involvement processes. One Divisional CWU Representative(s) for each of the IR Divisions affected should be appointed by the CWU and remain fully involved throughout the process including Technical Services Representatives, whilst identifying a lead CWU Representative for the overall project. Equally, working groups should be established involving key Area CWU Representatives impacted, either by proposed concentration or de-concentration and ensure that all affected sites are represented and involved from the start. Appropriate release time will be afforded for the analysis of data, preparation, and attendance at meetings, learning/training modules and joint activity.

It is recognised that the CWU may seek independent advice to assist them in understanding any proposal and assist in developing any alternative ideas. This will be subject to normal conditions of commercial confidentiality.

7.2 When Royal Mail has decided that a regional review will be undertaken at the outset, and before local communication, a joint meeting will take place between the Royal Mail Programme Director (for mail centre schemes) or the Royal Mail Logistics Director (for regional distribution schemes) and the CWU National Officer and the Key Regional/Geographical Individuals as described in paragraph 7.1 to brief them on the process and their roles and responsibilities in the consultation process.

The following information regarding the mail centres / regional distribution centres under review will be shared with the CWU as this becomes available and this will include:

(a) Geographically necessary to retain;
(b) Building capacity for extension;
(c) Capacity for reconfiguration of existing layout;
(d) Capacity available and ability to absorb traffic;
(e) Property details of any new- build mail centres;
(f) Maintenance costs;
(g) Offices where there is an operational need to do something;
(h) Where there is Developer interest;
(i) Local planning or compulsory purchase order preventing any immediate opportunities;
(j) Whether they are freehold or leasehold;
(k) The current quality of service results;
(l) The employee profile, which should include major changes taking place across all functions within the business and local employment levels;
(m) Forecast environmental impact; and
(n) Detailed forecast financial costs and benefits.


It is accepted that in all Mail Centre / Regional Distribution Centre reviews people issues will continue to be one of the key priorities and will hold equal status with other priorities of any proposed rationalisation. In each case, the overriding objective should be to confirm that the transformation in Mail Centres and RDC’s can be achieved without recourse to any compulsory redundancies / change to the full-time or part-time status of permanent CWU represented employees who wish to retain their current status. This will be completed as soon as is practicable in the consultation process.

The joint aim will be to develop an agreed approach to dealing with people issues in a way that meets this objective via a fully inclusive manpower / operational phasing plan for the whole of the scoped area. Such plans should include current staff profiles, vacancies, earnings expectations, legacy bonus etc, and other functional activities.

Royal Mail and CWU will develop joint preference exercises and where ‘Clear Choice’ is used then a joint session will be held between Royal Mail, CWU and the ‘Clear Choice’ provider to explain the roles and responsibilities of all parties in supporting the work to manage the people impact. Good practice from completed schemes should jointly be reviewed and considered in this exercise, for example the “People 1st” approach developed in other consultations.

7.3 This data will enable the region to assess options and propose changes from an informed position in line with the aims and objectives of this agreement. We have discussed the lessons learned thus far and agreed that the best examples of how both Royal Mail and the CWU work together should be built in to the process after each review. Workshops/training sessions will continue to be developed to improve understanding in the following areas:

Traffic profiles
Quality statistics and measurement
Key performance indicators
Manpower planning and financial investment
Modelling
Cost and benefits breakdown information, including VR costs

These sessions will also provide the facility for managers and CWU officials who have been through the process to share their experience and offer potential advice. Both parties are equally committed at National level to review each consultation and continue to build in good practice and lessons learned into future reviews.

All relevant information will be provided via data packs as early as is practicable in the process and supplementary information requests will be provided in a timely manner to allow full and detailed consultation. It is recognised that the anticipated timescales for consultation are influenced by the timing and quality of information exchange and will be adjusted accordingly. Automation information such as kit to be utilised, strategy and its proposed site location, will be part of the initial presentation.

Where new builds are involved the CWU will be consulted and involved in the layout and facilities consistent with current employee and industrial relations commitments and business standards.

7.4 The above information will also be shared with the NPG / NLSG including the initial thoughts of the Manager responsible for the regional review regarding any options.

7.5 The NPG or NLSG will discuss the suggestions put forward and regions will ensure arrangements are made for the initial ideas to be more widely communicated to the local parties (regional / mail centre managers / regional distribution managers and representatives) for their input and comments / validation of the information/suggested alternatives. This further consultation will take place with the CWU to allow another opportunity to comment and input on the option(s) being considered.

7.6 The CWU will formally present in a timely manner (and submit in writing) any alternative option/s for consideration and the management team will fully evaluate and respond accordingly in writing to the CWU. These proposed alternative options will be meaningfully considered and taken into account when Royal Mail determines which option/s should be considered.

7.7 Royal Mail will give a formal proposal to progress the project/changes and further detailed work will take place by the regional project team and local area representatives to establish the final option/s and the timetable to complete the review.

7.8 Prior to any final decision and announcement being made it will be shared with the NPG / NLSG and confirmation will be sought from both parties in the region that the review process and proposed deployment plan has been completed in line with the principles and terms of the framework. This will involve the Royal Mail Programme Director (for mail centre schemes) or the Royal Mail Logistics Director (for regional distribution schemes) and the CWU National Officer responsible for mail centres / regional distribution centres, meeting jointly with the key regional/geographical consultation group leads to understand and resolve any gaps between both parties prior to the final decision being shared at the NPG / NLSG.

7.9 The final decision and the rationale behind it will, in the first instance, be subsequently shared at a meeting of the full NPG / NLSG.

7.10 The appropriate national communications will then be arranged in accordance with the nationally-agreed review/decision process flow chart in the attached Annex. In addition, appropriate communications regarding the announcement of the decision and proposed deployment plan where applicable will be prepared regionally for cascade to the offices/people affected. Part of such communication will also explain the continuing framework for CWU involvement and consultation / negotiation for any new operational arrangements, phasing ‘check and go’ arrangements and people’s issues, using our jointly agreed processes.

7.11 Following the above decision being announced, both parties will accept that the process for determining the future of any site(s) has been completed, that the final decision has been made and that there will be full co-operation on the implementation, including dealing with the operational and people impact in line with the spirit and intent of this and other Agreements.


7.12 The improved processes detailed in this Agreement hold both parties to high standards with regard to involvement, relationships and trust. Meeting these standards will develop mutual confidence that the resulting decisions will address the key issues detailed in this Agreement. Against that backdrop, once appropriate consultation / negotiations have taken place, both parties will work together to implement the changes at pace.

8. CWU involvement

8.1 Both parties accept it is essential there is joint involvement with all relevant information shared throughout the review process.

8.2 Representatives will also be given the facility time and the opportunity to draw up their own alternative ideas/options so they can be presented and given due consideration before any decisions are made.

8.3 The planning, introduction and deployment of any revised operational arrangements will be jointly monitored at each mail centre / regional distribution centre and co-ordinated at regional/divisional level. Any concentration arrangements will be subject to a joint structured change deployment approach to minimise risk to service and quality performance, and ensure where possible that people’s issues are all resolved. This will be driven by an joint ‘check & go’ process prior to each phase of deployment commencing, which will both prepare operational units, test assumptions during deployment, maintain QofS and resolve peoples issues with equal status.

This information will be shared with the NPG / NLSG to enable them to also review progress.




9. Employee Impact / People Issues

Where Royal Mail makes a decision to progress a change/s in respect of the Mail Centre or RDC network the discussions and negotiations regarding all aspects of the impact will be carried out appropriately in line with current national agreements, the IR Framework and the following terms:

No member of staff will be forced to buy down their hours/go part-time and no part-time employees will be forced to increase their contractual hours.
The aim will be to meet every individual’s first preference wherever possible and offer suitable alternative jobs that take into account individuals’ personal circumstances, including any additional travelling distances and time.
The business will seriously consider practicable opportunities to mitigate job losses in losing units in the short-term by the phasing of work and in the longer term by scoping work to retain where it is cost-effective and meets customer and operational needs. Consideration will also be given to the possibility of introducing new work, taking into account the success criteria detailed in Section 4 of this Agreement.
The movement of workload will be based on operational needs including the ability of gaining offices to maintain quality of service. When moving workload, people issues will also be considered in line with the existing national policies and procedures including Managing the Surplus Framework (MTSF).
In addition to the terms of MTSF, an outplacement support package (currently contained in Clear Choice) will be provided to help individuals so they can make realistic and appropriate choices for their future.
If there is no suitable public transport available (i.e. there is no convenient bus or rail link) consideration will be given to Royal Mail providing crew buses to assist employees who have made the choice to follow their work to another mail centre. If subsequently a crew bus is withdrawn, any employee using it will again be subject to the MTSF Managing the Surplus Process.
The relocation assistance in Paragraph 8 of Annex A of the Code of Practice for Managing Surpluses 2002 will be available.

10. Communication

It is agreed that such initiatives require a high degree of commitment and participation if the changes are to be delivered smoothly and on time whilst maintaining morale. Therefore regular communication, both joint and separate, but joint where ever possible, is considered the best approach and a crucial factor in such an initiative. Joint communications should be agreed and carried out jointly where appropriate.

It is accepted that for the CWU to operate effectively and democratically it needs the active participation of its members. Reasonable time during working hours will be provided for CWU members to be adequately updated, discuss progress and ratify proposals. Such meetings should only be held with the agreement from local management in regard to the appropriate time for such meetings to take place, with both parties ensuring the safeguard of customer service and a mutually convenient time which minimises any effect on the operation.


The following principles will be adhered to:

Opportunities for joint communications will be proactively identified and encouraged;
Where joint communication is not practical, communications should still wherever possible be discussed prior to issue;
Communications should be constructive and focus on the aim to create a secure future for Royal Mail and its employees;
Both parties recognise that some information must remain in commercial confidence in line with paragraph 6.3 of this Agreement;
Royal Mail public relations and the CWU Communications department will normally respond to media interest nationally;
Where the media contact is at local level a joint statement and/or media line should, wherever possible, be agreed by both parties; and
If agreement cannot be reached, both parties will have respect for the other parties’ point of view.

11. Framework Improvement, Application and Interpretation

It is recognised that it is crucial to develop and improve this process and the role of the NPG / NLSG, in supporting Managers and CWU representatives in their aim to jointly achieve mutual interest solutions in regard to transformation and the resolution of people’s issues.

Any issues regarding the application/interpretation of this agreement should be forwarded to national level for resolution by the lead negotiators of this agreement.






Ian Jones Euan McMurdo Terry Pullinger