RM Specialist Services(RMSS) Joint Statement - Update

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Letter to Branches




No. 396/2013
Ref: 218.01
Date: 7th June 2013





To all:

Postal Branches
Parcelforce Regional Organisers
RMSS Representatives




Dear Colleague

Royal Mail Specialist Services (RMSS) Joint Statement - Update

Please find attached for the information of Branches and representatives a Joint Statement that the CWU has agreed with Alex Warner, Managing Director RMSS.

The content of the Joint Statement is self-explanatory and sets out the business plans to deliver long term growth and return RMSS to a profitable position, with the full involvement of the CWU at all levels and with the principle of mutual interest at its core.

RMSS operates in a commercially challenging and competitive environment and despite providing an award winning service customers will sometimes choose to move their business elsewhere.

Unfortunately you will note that reference is made to the loss of one such contract (Indesit) within the terms of the Joint Statement and details are provided as to how this will be managed going forward, which will hopefully allay any concerns that our members who perform this work may have regarding their future employment with RMSS and/or their standard of living going forward.

In these difficult times we hope that the commitment contained in the Joint Statement in regard to the business’ growth plans will help to reinforce an element of confidence in both the outlook for RMSS and our members in regard to their long term futures.

Further information regarding the ongoing developments in RMSS will be circulated as appropriate in due course.

Any enquiries in relation to this LTB should be addressed to Terry Pullinger, Assistant Secretary, e-mail: dwyatt@cwu.org or lwright@cwu.org quoting reference number: 218.01

Yours sincerely





Terry Pullinger
Assistant Secretary






Joint Statement between Royal Mail Specialist Services and CWU

INTRODUCTION

Previously Royal Mail Specialist Services (RMSS) and the Communications Workers Union (CWU) agreed a framework with the objective of maximising the potential for the success of the new direction of RMSS and to strengthen the relationship between both parties going forward. In respect of direction, RMSS was tasked with seeking new opportunities in the financial services market as well as focusing on accessing new markets, such as servicing field engineers in express parts distribution.

A key aspect of our joint approach is the provision for genuine CWU input into the formulation of RMSS policy prior to decisions being finalised, in order to ensure that due account is taken of both business and employee needs.

Due to the nature of the highly competitive marketplace targeted by RMSS, we have always recognised the need to take into account the speed at which the business may have to adjust in an ever changing environment, coupled with the need for all parties to respond speedily to each other’s legitimate interests.

Against that backdrop we are aware that it has been some time since we last communicated with you and in the light of imminent contract changes we felt now was an appropriate time to update you on the current position.

In the first instance we are pleased to announce that RMSS has presented its ongoing and long term business plan to the Royal Mail Group Directors and that RMSS received positive encouragement from Royal Mail Group, who are supporting the plans to deliver long term growth and recover RMSS to a profitable position.

REFLECTION AND IMMEDIATE PRIORITIES

The last financial year (12/13) was extremely difficult for RMSS within a challenging commercial environment that has made new contracts difficult to come by and our present customers looking for reductions in rates. Despite this however, in the second half of the year our financial position has improved, although we remain some way short of being a profitable business at this time.

An example of how difficult things can be is the recently received notification that we are to lose one of our major contracts ‘Indesit’ in the near future. We are working very hard to minimise the impact on all employees of the ‘Indesit’ loss and whilst this will create some changes to our current operation we are committed to working together to find the most appropriate solutions and discussions will commence shortly for those affected. Locally discussions in this regard should ensure that employees affected by any changes feel that any views and concerns they have expressed have been considered and taken into account and that issues of job security and earnings have been addressed.

This situation has been complicated by ‘Indesit’ now claiming that they will not adhere to their contractual obligation in respect of the timescales of withdrawing their work, claiming they will remove it in 4 weeks as opposed to the stipulated 120 days. Whilst we are challenging this issue it may mean we will have to move at exceptional pace and to this end we assure you that current duty attendance times and earnings expectations will be protected while we agree any operational changes and key considerations in any final solution, consistent with a our Nationally agreed commitments.

These issues should be the subject of immediate discussions between your local manager and CWU representative, in line with the spirit and intent of our joint commitments and the IR Framework Agreement.

REASON FOR OPTIMISM

Despite this, there remains great belief that we will return to delivering good financial performances and RMG continue to show faith in us, which is demonstrated by considerable investment in our new IT systems due to be completed during August 2013. We are also presently in discussions in relation to a further major investment in our current vehicle fleet and hope to share more information on this in due course. Simultaneously, we have worked very hard to realise savings through achieving better value for money for a number of internal services that are provided from other parts of Royal Mail Group. We are also in negotiations with some large potential accounts and have not only retained our contract with British Gas recently but also won the contract to distribute their smart meters. We have also been successful in winning a number of other smaller contracts.

Whilst we recognise that losses of existing contracts may create a level of concern and a need to adapt to those changes, we are committed to continuing to work together consistent with a mutual interest culture, to support the overriding objective of returning RMSS to profit.

It is also our intention to share both our short term goals and long term strategic plan at a joint National and local managers/CWU representatives ‘Communications/Strategy day’. The outputs of this event will be cascaded to all RMSS employees and we will seek their views and input whilst we continue to meet at National level to discuss the needs of RMSS as a single business unit. As part of our ongoing discussions we have also commenced our talks on pay and reward for 2013, as per our 2010 agreement.

Finally, we would like to thank all of the RMSS employees and CWU members for their hard work. In presenting the long term plan for RMSS to Moya Greene, she paid tribute to the effort and successful contribution of everyone in the section. The service provided to customers in terms of reliability, timeliness and security is the best in the sector and has been award winning. Equally, in the last 12 months great improvements have been made in our safety performance, although we have further work to do in this area.



Alex Warner Terry Pullinger
Managing Director Assistant Secretary
RMSS CWU


Date: 7th June 2013

[therailway]

Got a letter from Unit Manager confirming loss of 10 hrs SA per week effective 26th July, how does this fit with quote
"to this end we assure you that current duty attendance times and earnings expectations will be protected while we agree any operational changes and key considerations in any final solution, consistent with a our Nationally agreed commitments."