Royal Mail Modernisation Plans/Mail Centre Rationalisation

[POSTMAN]

Couple of weeks old but important all the same.

The purpose of this LTB is to provide Branches with a comprehensive update on how Royal Mail's modernisation plan is developing and also to set out the Union's response.

In the last few weeks the Union has had a number of meetings with Royal Mail over the company's future commercial and operational strategies.

On the operational side Royal Mail said they intend to progress Mail Centre rationalisation on an area by area basis over the next couple of years. They also stated they do not have, at this stage, an overall position on how many Mail Centres wil remain.

On Deliveries Royal Mail said they have yet to finalise their plans and they want to engage CWU in developing a new Delivery Model alongside the introduction of Walk Sequencing Machines.

On Network Royal Mail said that they envisage a reduction in RDCs but they are still developing their plans at this stage.

The Union's Executive has been considering these issues and have agreed we will not support a disjointed and piecemeal approach to the modernisation of the company.

Given that Royal Mail continue to progress ad hoc Mail Centre Reviews a meeting was held on Tuesday the 12th August 2008 with all Branches currently affected by Royal Mail's Mail Centre rationalisation plans. The meeting concluded by adopting the following policy:

There would be no further local or area discussions on Mail Centre closures unless advised by CWU Headquarters.

There would be no further co-operation with preference exercises in the affected sites.

The Union would prepare for Industrial Action Ballots in all the affected sites.

The aforementioned position will ensure we have a co-ordinated National approach to major change and also move forward Emergency Motion E12 unanimously agreed at this year's Annual Conference.

On Wednesday the 13th August 2008 the Union met Royal Mail Senior HR Manager, Head of Operations and National IR Manager to discuss the overall situation.

During the meeting the Union made it clear we are ready to negotiate a National Agreement covering all aspects of modernisation. However we stated this must be in the long term interest of not just the company - but also CWU members and the general public. We acknowledged any Agreement would need to cover difficult issues including efficiency, best utilisation of automation, impact on jobs and changes to the whole network. We said any National Agreement must improve the pensions, pay and conditions for CWU members who remain and provide job security, whilst maximising the choices available for those who chose to leave on agreed voluntary terms.

We have offered to commence our negotiations with Royal Mail by setting jointly developing a vision for the future. This means Royal Mail must set aside their current plans on Mail Centre rationalisation including those offices already announced as closing.

The CWU have put forward our rationale that any serious plan for the future must start by agreeing a new Delivery Model. This in turn would then inform what type of Mail Centre and Distribution network is required. We have also pointed out that investment in automation should be on the basis that mail can be delivered earlier with an improved service - rather than towards later deliveries which is where Royal Mail seem to be heading.

Royal Mail responded by saying that they did want to work with the Union and were prepared to review their position on the North West Review. However they said they must press ahead with the offices already announced for closure. Given the seriousness of the situation, Royal Mail offered the Union a meeting with the Managing Director in early September when key people on both sides have returned from Annual Leave. The Union accepted this invitation but have told Royal Mail that in the meantime we will continue to adopt the policy outlined in this LTB.

It can be seen from the aforementioned that a serious Industrial Relations situation is developing and it is essential all Branches communicate the content of this LTB to all CWU members.

Although at this stage the Union is preparing for Industrial Action Ballots in the affected areas i.e. the North West, Coventry, Northampton, Milton Keynes, Oxford and Reading - it is inevitable that unless Royal Mail change their current position, an overall National Agreement will have to be pursued in the near future with the full support of all CWU Branches.

Please see attached to this LTB key points where the Union is requesting further information from Royal Mail to enable us to see the whole picture.

Further information will be sent to Branches in due course including details of a National Briefing in September and a pamphlet that will be sent to member's home addresses.
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Further Information Requested from Royal Mail

That Royal Mail reveal to CWU their full business plan and provide the Union with total clarity around projected job losses, office closures, level of savings expected and their financial projections for the duration of the plan.

That Royal Mail reveal to the Union their people strategy for dealing with closures and their pay and benefit assumptions for the duration of the plan.

That Royal Mail reveal to the Union full details on ColleagueShare/Stakeholder dividends including how this is linked to the so-called increase in value of the company.

That Royal Mail reveal to the Union the real cost of their property portfolio and what they intend to do with finance acquired through the sale of property.

That Royal Mail explain fully the relationship between automation in RDC's, Mail Centres and Deliveries and its potential impact on people and the operations in each function. This would also cover the siting of walk sequencing and LSM's.

[zaphod]

Trust this means that Bristol Mail Centre will be closing in the next few years. OMG, please