Logistics and Network Framework Agreement:Pages 37-46

[POSTMAN]

From the agreement pages 37-46.

Logistics and Network Framework Agreement

Introduction
This document has been developed jointly between Royal Mail Logistics & Network and the CWU to articulate our joint vision to transform our approach to operational efficiency, customer focus, competitive awareness, relationships, involvement and the development of a mutual interest culture.

This commitment is very important as it reflects our ongoing common objectives and sense of purpose, and offers clear recognition that the relationship between Royal Mail Logistics & Network and the CWU will be a key factor in the contribution that Network can make to the future success of Royal Mail.

Both parties recognise that the future of the business depends upon the ability to improve operational viability, beat competition and increase market share. It is equally recognised the value which all employees provide to the industry and its customers. This agreement is based on those balanced interests and provides the opportunity to promote constructive industrial relations.

It is extremely important that we all keep progressing to new levels of company performance, working relationships and rewarding employment. We believe that this is best done by strengthening the strategic partnership approach between Royal Mail and the CWU through the sharing of ideas to develop consensus solutions to our challenges.

In an increasingly competitive world the pressure to achieve business success at pace is ever greater and the need for effective industrial relations is critical, as adversarial relationships damage the interests of both the company and employees. Against that backdrop this agreement provides for regular strategic dialogue between management and the union. We will jointly develop and deploy effective and responsive processes on the issues affecting the business.

Both parties believe this approach will improve understanding and lead to more effective ways of joint working at all levels.
The joint aim is to put in place a framework whereby the CWU has the opportunity to actively contribute to the success of the business by allowing for its views and perspectives to be meaningfully taken into account before decisions about the future are finalised.

Transforming the operation
The Network function is the glue that holds the whole Royal Mail operation and its product offerings together and needs to be reliable, economic, efficient, flexible, transparent and on time every time.

The following initiatives will be deployed as part of this agreement in line with the process described in this agreement.

RDC network
Royal Mail Logistics and Network’s vision for the transformation of RDCs is a fully automated, clean and safe working environment with all mail presented in trays and Yorks. The ambition is to offer capacity for bulk packets and new products, and be the biggest fulfilment provider by broadening the tracked competitive offering, win a greater market share and grow volumes and revenue.

The transformation for employees will be an up-skilling from manual processing operators to machine operators trained to have an understanding of production control techniques and how to use data to improve the operation.

While the ideal vision would be for a new network of purpose-built, geographically located sites, the practical way forward may be a combination of new sites and upgraded existing ones. Royal Mail Logistics and Network will look to fully utilise and realise the potential of its existing sites.
However, both Royal Mail and the CWU recognise that the combined factors of competition, a new mail centre network, automation, improved efficiency and fluctuating traffic levels, will provide potential business opportunities for economies of scale.
This will result in a significant reduction in the number of RDCs over next three years through mergers or new builds.

The factors that will influence the number of RDCs (VOCs, network hubs etc) are:

mailsort – market volumes, customer profiles, potential changes to outward and inward processes, new product design

automation – size, type, capability and new machinery

mail centre strategy – location and number of mail centres

cross docking – the volumes and type of mail to be cross docked

packet strategy – how best to manage increasing volumes and new product development

fleet profile – the continuing development of our fleet profile to meet the requirements of internal and external customers


employee factors - compatibility with employee commitments to job security, earning aspirations and surpluses in line with existing agreements
When a proposal is developed to merge or close an RDC, then the proposal will be progressed in line with this agreement.

Vehicle operating centre network and network hubs

The vision for the national network is to provide a robust and reliable service which has an ambition to facilitate the development of new products and services and growth of existing core products in line with the spirit and intent of this agreement and the Professional Drivers Agreement (PDA).

The business plans to make use of evolving technology to ensure that the customer experience is measured and Network performance is analysed and improved by building real-time data into our network planning cycle.

Against that backdrop, any changes to the network of VOCs and hubs, including new units/hubs, site rationalisation, closure or change of role will be progressed in line with this agreement. The factors which will influence the changes are those detailed in the RDC network section of this agreement. A significant change in product offering and work demographic is anticipated over the next three years which is why business transformation is so key.

In regard to technological advances and more precise information, the commitment is to develop and utilise such data to improve safety, quality of service, efficiency, reduce driver stress and improve driver comfort. Such matters will be researched and developed in line with the joint problem solving approach adopted for DMS, and progressed in line with the Professional Drivers Agreement (PDA).

Network distribution reviews

The CWU recognises the scale of transformation and rationalisation in the network of mail centres, RDCs and delivery units will require the national distribution network to be under constant review. An annual national network review will be carried out each summer.

In between, there may be a requirement for regional reviews to take place to align the network to any regional changes. In all cases the CWU will be consulted and involved at the earliest opportunity on the development of the scope, aspiration and rationale.

The process of consultation will be concluded prior to national/regional joint briefings to launch the initiative. Existing agreements and processes will apply to ensure plans are deployed with pace.

RDC automation
A programme of RDC automation is under way and will continue to be rolled out during the course of this agreement to deliver improved performance and efficiency. The deployment of this technology will facilitate an improved, safer working environment as well as enable the deployment of solutions to grow new products and services. This phased programme is an integral part of business transformation and will be deployed through the consultation process described in this agreement.

Where applicable, Total Productive Maintenance (TPM) allowances will be paid to operatives who undertake the prerequisite activities on technologically advanced automation in line with the existing TPM agreement.

MVOS
Mails Verification on Site (MVOS) is a product offering which has been developed as a direct competitive response to the reality that customers have a choice of postal providers as a consequence of downstream access and liberalisation.

Royal Mail Logistics and the CWU have jointly recognised in this agreement the need to innovate new products and services beyond the traditional core. Against that backdrop, MVOS is considered to be totally consistent with the benefits of a product offering that improves business efficiency, maximises profitable revenue and provides an end-to-end range of postal and distribution services.

As part of transforming our commercial offering, MV employees will be located at customer premises to provide a range of operational services to secure and improve the overall service provided by Royal Mail. This will include standards of mail presentation, mails verification and customer compliance issues.

When a customer has expressed an interest in developing a proposition for the MVOS service, local consultation will begin at the earliest opportunity to identify issues or concerns.
Employees working on customer premises will continue to be fully briefed on matters relating to their parent unit including vacancies, development opportunities and Royal Mail in general. This communication will be provided by a designated line manager at their existing parent office.

Recruitment to an MVOS position will, in the first instance, be from volunteers in the MV section of the Royal Mail unit designated as the ‘parent unit’. Under normal circumstances this will be the RDC, except where, geographically, the parent unit would be considered an unreasonable distance from the MVOS customers’ premises. Where this is the case recruitment to the MVOS duty will be from the nearest Royal Mail locality.

Travel to the customer’s premises will be on Excess Travel Expenses (ETE) terms, as set out in the MTSF agreement.
The bonus scheme operating at the parent unit will continue to be paid to MVOS based employees.
Where additional earning opportunities are not available at the MV site then MVOS employees will be given equal access to overtime and scheduled attendance in line with normal operating arrangements in place at their parent unit.
Travel between the parent unit and MVOS location to perform overtime or scheduled attendance will be unpaid.
To ensure adequate coverage exists for MVOS duties at times of annual and sick leave, a locally agreed reserve list for MVOS duties will be established. The number of reserves required will be agreed and trained locally.

In the event a customer gives notice to withdraw from MVOS, and in line with the contractual terms and conditions, the employees will return to their parent unit. If necessary, MTSF will be used to manage any resultant surplus.

MVOS duties will generally be remote from direct supervision and the employee will be required to work with customers on a range of issues. Where appropriate, and depending on the nature of the role and complexity of the customer issues, a leadership allowance payment may be applicable in line with existing policies.
The CWU may have access to customer premises when requested, in order to interface with Royal Mail employees CWU members or consider any health and safety issue as appropriate (by prior arrangement with the customer and Royal Mail).

MVOS duties will be considered ‘Specialist Roles’ in line with the Way Forward agreement and will be resourced using the specialist resourcing procedure.

RDC performance
Current productivity arrangements for RDCs are covered by the National Interim Indoor Productivity Scheme which is not based on objective measurement with regard to working methods and performance expectation. Both parties agree that the existing RDC interim productivity scheme needs to be reviewed and updated.

The methodology of the review and the size and attendees of the review group will be determined by the National Network Steering Group (NNSG) and the process used will be the ACAS joint guide to problem solving.
At the conclusion of the review, the NNSG will analyse the findings and determine next steps prior to the use of any data or progressing of potential/changes to approach that may be recommended.
It is also agreed that such an exercise would, once concluded, ensure CWU representatives are trained in the techniques to be applied.

Progressive agenda

The agreement made between Royal Mail and the CWU on 5 November 2009 carried a commitment that the Network section of any final agreement would determine a progressive agenda of issues for further discussion.

Both parties agree that there is a requirement for ongoing discussions in Network in relation to transformation as some elements are still at the design stage. Discussions in this respect and on any major initiatives/programmes not covered by this agreement will take place and will cover all aspects of the change including terms and conditions and reward. This approach forms an integral part of any ongoing dialogue on the 'Progressive Agenda'.

These issues will be progressed in line with the "Engagement Development & Planning" section of this agreement and the ACAS Joint Guide to problem solving.

The issues currently known are:

Efficient alignment of resource to the plan

Efficient non core resourcing

Legislative change to vehicle dimensions

RDC revision planning

RDC diversions arrangements

Revitalising PDA

Driver meal break arrangements i.e. paid and unpaid

Attendance on bank holiday arrangements etc.

Engagement, development and planning

This agreement builds upon the foundations of a joint commitment to forge positive and constructive working relationships between Royal Mail Logistics and Network and the CWU which promotes strategic involvement at all levels. This foundation allows for genuine CWU input into the formulation of Royal Mail policy prior to decisions being finalised, in order to take account of both business and employee needs.
This process should take into consideration the speed at which the business may have to operate in a changing environment and the need for all parties to respond speedily to each other’s legitimate interests.
Both parties have successfully deployed the use of strand and working group activity in the past as a prelude to formal negotiation. Currently we have joint working groups working on the evolution of a number of LGV driver-related issues.
Future research and development initiatives shall be driven by a National Network Steering Group (NNSG). This strategic group will comprise of the Logistics Director and the CWU National Officer and their respective support teams. It shall meet as a minimum four times a year and as required depending on the need to meet.

The role of the group will be to:

ensure the ongoing strategic involvement in Network and Logistics

provide the opportunity for the union to influence plans from an informed position

ensure shared understanding of the overall Logistics/Network strategy as it develops

discuss the forecast timetable for any proposed future Network hub/unit review/changes

guide these reviews/changes in line with agreed processes

clear any appropriate communications that need to be circulated from national level on the programme sponsor the work of Network Working Groups (NWGs) that can investigate and review specific issues or areas of concern as identified by Royal Mail or CWU as appropriate

Network Working Groups (NWGs) will be used for the development of ideas and initiatives for Network RDCs & Hubs and LGV driving issues. The groups will be project driven from the National Network Steering Group (NNSG) which will determine the number and size of each working group required.

The Network Working Groups are a key expression of joint business and CWU strategic involvement activity. They facilitate the notion of moving at pace with understanding and enable a more detailed analysis of project development. They work under the guidance of and report back to the National Network Steering Group, and are designed to engage many more people in reviewing and developing together business plans and projects along with employee aspirations.

The NWGs are not negotiation forums and do not replace collective bargaining or the existing IR Framework, but they will serve to focus the key personnel in both organisations on the key challenges the business faces. When any issues being discussed have reached the stage where they require formal negotiation they will then be forwarded to the respective leads for resolution.

Royal Mail commits to share with the groups all information which is influencing its thinking on potential projects and will involve the groups in all analysis, information gathering and project evolution activity. This will allow for a better understanding of the direction of the project which, in turn, will allow for a more informed exchange of views, consultation and, at the appropriate time, negotiation.
The full value of CWU operational experience should be taken into account and Royal Mail will allow the CWU every opportunity to input and influence project development prior to the business finalising any decision and the start of negotiations. Commercially sensitive information given to the CWU representatives will not be shared with employees or third parties.

Cross business issues

Where any issue being discussed would impact on any other function outside Royal Mail Logistics and Network then the process will ensure consultation must take place with both management and the CWU in those other functions.

Deployment

This generic framework is intended to be the standard point of reference for dealing with all change activity affecting Network professional drivers, Network hubs and Network RDCs.
It is recognised this fresh approach to developing a new culture will only be successful by both parties genuinely working together in line with all agreements.

The requirements for positive deployment are:

effective consultation/negotiation between Royal Mail, representatives and employees/members on the changes to be deployed

Royal Mail and CWU understanding the need to recognise both parties’ strategic goals and work together to ensure the right solution is quickly and effectively implemented

the spirit and intent of this agreement is deployment at pace to ensure the business continues to be in a strong commercial position in the marketplace

employees affected by any changes feel any views and concerns they have expressed have been considered and taken into account and that issues of security of jobs and earnings have been addressed

all new working arrangements/equipment have been risked assessed and agreed safe systems of work are in place

appropriate training is provided
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any requirement for transitional arrangements are identified

The deployment programme scheduled is achievable and has no unreasonable adverse effect on quality of service and/or health and safety and/or security standards

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 all the issues. Against that backdrop, once consultation on changes is satisfactorily completed both parties will work together to implement the changes at pace
To ensure effective project implementation, detailed discussions will take place at national level on the deployment objectives of any agreed change. Information will be provided on all of the key benefits.

Following this, local deployment will be discussed at unit level prior to implementation to take account of any possible concerns, risks or difficulties. The introduction of any revised duty/attendance arrangements will be negotiated in line with the IR Framework.

It is agreed that such initiatives require a high degree of commitment and participation, if the changes are to be delivered smoothly, on time and morale is to be maintained. Therefore regular communication, both joint and separate, to employees and CWU members is considered another crucial factor in such an initiative.

Joint communications should be agreed and carried out jointly where appropriate. In respect of separate communication, 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 express agreement from 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.
To ensure any unforeseen employee concerns are also resolved as quickly as possible local parties will meet regularly to monitor and review deployment arrangements.
Where there are points of clarification or interpretation required regarding deployment these should also be dealt with speedily at national level.