Romec Cleaners'Update : Building Closures & Cleaners' Pay

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Letter to Branches


No. 652/11 Ref: 120.12 Date: 22nd July 2011


To: All Branches with Postal Members
CWU Romec Regional Cleaning Representatives
CWU Divisional Representatives


Dear Colleague,

Romec Cleaners’ Update - Building Closures & Cleaners’ Pay claim 2011

Building Closures (Managing the Surplus Agreement)

As a consequence of the North West Mail Centre review and some local issues, Branches found themselves left with a potential unresolved surplus of cleaners.

In order to try and resolve this situation a meeting was held in Stockport with Romec at national level. This was done in conjunction with the Branches affected and resulted in an agreed process which allowed the situation to be resolved to the satisfaction of all involved.

However the agreed process was contained in 3 separate documents and it was therefore agreed to consolidate them into a single document covering all aspects of the agreed process. Since then we have been attempting to draw those documents together into one document which would provide the right framework for engagement and resolution of any similar problems regarding cleaners affected by building closures.

As previously reported in LTB 578/11, the stumbling block to bringing this about has been the issue of the redundancy terms for those seeking release on VR. It came to our attention that since 2007 Romec has been employing new entrants on contracts which specify statutory redundancy terms and not those agreed in MSA.

Following an exchange of letters where our position was made abundantly clear to Romec a further meeting was held with them on 13th July 2011 to try and resolve what we viewed as an extremely serious issue.

We are pleased to report that the issue affecting post January 2007 employees has now been satisfactorily resolved and Romec have confirmed that MSA terms will apply in full.

As a consequence the attached document was endorsed by the Postal Executive and should now be used in conjunction with MSA when dealing with building closures.









Cleaners Pay Claim 2011

As previously reported our cleaning members pay claim is now well overdue. Branches will have noted the content of LTB 638/11 which sets out a timetable to resolve all issues relating to the dispute in engineering plus the outstanding pay claim.

For absolute clarity, Branches and our cleaning members should be assured that we will be insisting that the pay claim for Romec cleaners will also be settled within the same timetable and failure to resolve this by 19th August will lead to the Postal Executive giving serious consideration to whatever steps may be necessary, including industrial action, to bring this to a satisfactory conclusion.

Please ensure that the content of this LTB is brought to the attention of all cleaning members.

Any enquiries to Bob Gibson’s Office, quoting reference 120.12
Email address: hnutley@cwu.org


Yours sincerely

Bob Gibson
Assistant Secretary


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Romec and CWU joint approach to Building Closure Programme

Introduction

To assist in resolving the surpluses created by Royal Mail Building closures Romec and the CWU will adopt the approach outlined below.

The joint objective is to enable those affected by building closures to plan for the future with the maximum degree of confidence.

The provisions contained within the Managing the Surplus Agreement (MSA) will be deployed in relation to units affected by closure/merger.

The measures set out in this document shall be implemented whether or not a formal date of closure has been advised, but after any formal consultation period relating to such closure has been concluded.

The Process

An initial Joint Romec/CWU presentation will be made to potentially affected employees. Such presentation will provide a statement as to the position as known at that time and the processes and options provided under the terms of the MSA.

As soon as practicable individuals’ preferences will be sought. It will be made clear to all involved that this exercise is for planning purposes only and that it is not a binding commitment. It may be necessary for further such exercise/s to be carried out dependant on future developments or further information.

Current and potential future vacancies that may be suitable as redeployment opportunities will be identified and updated throughout the closure process.

Where suitable vacancies arise prior to the closure date, individuals will be offered the opportunity to take up such vacancies prior to the formal closure of the current office under MSA provisions.

Regular diarised meetings shall take place between the relevant Romec Regional/Area Manager and CWU Regional Representative, at no more than 2 month intervals to ensure that all parties are kept up to date as developments occur and to ensure compliance with the MSA provisions.

Individuals affected shall be provided with regular updates as to the current position.
Such updates should be by means of a joint presentation or notice. What must be avoided is a position of non-communication – even a brief communiqué stating “no developments” is preferable to silence.

Resolving the surplus

Romec will always seek to provide suitable alternative work for all employees affected by a closure.
There will be instances where Romec is able to offer suitable alternative work yet individuals would prefer to leave the business. Should such departure be in the interests of both parties then this release will be made available on the basis of the terms agreed in this document.

In instances where Romec is not able to offer suitable alternative employment then, in line with the 2008 ‘New Deal for Romec Cleaning’, the provisions of the MSA will apply.
Offers of alternative employment or a financial sum to leave the business will be made to the surplus individuals.

Should the above measures not resolve the surplus then discussion between Romec HR and CWU National representatives will examine the opportunities for ‘bump’ redundancies under the terms of this document.


Suitable alternative roles

Suitable alternative work will be defined in line with the MSA.

When a suitable alternative role is taken up appropriate travel and transport options will be considered.

In circumstances where Excess Travel Expenses (ETE) is considered to be the appropriate option, ETE will be calculated in line with the MSA and travel to and from work will be in the individual’s own time.

Romec may choose to arrange for transport to be provided from a central point when it is cost effective to do so. Transport provision will normally be in the form of a minibus or a pool car, dependant upon numbers, which will be held at a central point. When it is cost effective to do so Romec may fund driving qualifications for an additional individual(s).

In circumstances where transport is provided travel to the meeting point would be in the individual’s own time, further travel would be in normal working hours.

Where the option of cleaning multiple sites is taken, travel expenses associated with commuting between workplaces will be met by the businesses in accordance with Romec’s expenses policy. Travel time (between units) will be performed within contractual working hours.

Where vacancies arise in the future at the original location(s) or at a site nearer than the current site of employment these vacancies will be offered firstly to those people who have been previously redeployed under this agreement. Should more than one person be interested in a job, selection will take into account individual personal and domestic arrangements. If such process is unable to differentiate then selection will be based upon seniority.

Release from the business

Release from the business on agreed terms (TMA2) will be available on the basis that suitable alternative work exists.

The financial sum is calculated upon the following terms:

2 weeks pay per year of continuous service for 1 – 10 years service
3 weeks pay per year of continuous service for 11 – 20 years service
4 weeks pay per year of continuous service for greater than 21 years service
Subject to a maximum of 104 weeks pay
Part years will not be included in the calculation

Release from the business will be via compromise agreement (see appendix 1) and ‘redundancy’ will be used as the reason for termination.

The employee must seek advice from an independent legal advisor, the fees arising from such advise are payable by the company to the sum of £250.

Such an exit from the business will not debar the individual from returning to employment with Romec, or its shareholders, at a later date. Nor is there any clause for recovering monies should such employment be secured.

Period of review

This document and associated terms will be reviewed no later than the end of 2013.



Romec …………………………………….. CWU…………………………………….

Date 21st July 2011

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Without prejudice/subject to contract
Compromise Agreement

This agreement is made between Romec Limited of Highbank House, Exchange Street, Stockport, SK3 0EE (the “Employer”) and xxxxx (the “Employee”).

The parties have agreed the following:
1. The Employee’s employment with the Employer will terminate on xxxxx (the “Termination Date”) by mutual consent.

2. The Employee will receive pay and benefits up to and including the Termination Date. Payment will be made direct to the Employee’s bank account on the next normal pay, after deductions for tax and employee national insurance contributions.

3. The Employee warrants that he/she has not received an offer of employment nor other work and nor is he/she in discussions likely to lead to such an offer being made.

4. The Employee must return promptly and at the latest by xxxxx all documents/ correspondence belonging to the Employer, all copies of any such documents/ correspondence and all other property belonging to the Employer (including but not limited to security pass, keys, credit or charge cards, mobile phone, company car, laptop, and computer software) which is in the possession of the Employee or the Employee’s Advisor or is otherwise under the Employee’s control.

5. The Employee will receive £xxxxx by way of compensation for loss of his/her employment (the “Termination Payment”). Payment will be made within 14 days of the Employer receiving a copy of this Agreement signed by the Employee and Employer and a certificate from the Employee’s Advisor in the form attached at Schedule 1. The Company will make the first £30,000.00 of the Payment without deductions for income tax or employee national insurance on the basis that it is a non-contractual termination payment. The sum by which the Payment exceeds £30,000.00 shall be paid subject to the deduction of income tax at the basic rate.

6. The Employee will be solely responsible for, indemnify the Employer against and keep the Employer indemnified against any liability in respect of income tax, employee’s national insurance contributions and related costs and penalties arising in respect of the payment made and other arrangements under the Agreement (except liability in respect of any deductions made by the Employer at source).

7. On receipt of a written request from a potential employer, the Employer will provide a reference in the agreed terms as set out in Schedule 2.

8. As you are a member of the Royal Mail Pension Plan (the “Plan”) and are aged over 50, you may have the right to apply to the Trustee for immediate payment of an actuarially reduced early retirement pension, subject to the Rules of the Plan. Alternatively, you may choose to defer your pension and apply at any time up to age 60. If you choose to defer your pension, you will within two months of the Termination Date, receive a statement of your accrued benefits under the Plan and of the options available to you for dealing with your benefits.

9. The Employer agrees to contribute up to £250, exclusive of VAT, towards the legal fees the Employee incurs with the Relevant Independent Advisor in taking legal advise in consideration of the Employee entering into this Agreement. Payment will be made directly to the Relevant Independent Advisor on receipt by the Employer of an appropriate invoice addressed to the Employee but marked payable by the Employer.

10. This Agreement is intended in particular to settle Specific Claims. In this Agreement “Specific Claims” means the following specific complaints or potential complaints which the Employee may have against the Employer, any Group Company or any of their officers or employees, whether such complaints may have already arisen or arise in the future and whether or not the Employee has or could have knowledge of them:

Unfair Dismissal
That he/she has been unfairly dismissed under s94 ERA 1996/ that he/she has been unfairly dismissed in contravention of the procedures set out in Part 1 of Schedule 2 to the Employment Act 2002 contrary to s98A ERA 1996/ that he/she has been unfairly dismissed on grounds related to health and safety matters under s100 ERA 1996/ that he/she has been unfairly dismissed on grounds related to his/her working time rights under s101A ERA 1996/ that he/she has been unfairly dismissed on grounds of having made a protective disclosure under s103A ERA 1996/ that he/she has been unfairly dismissed on grounds of asserting a statutory right under s 104 ERA 1996/ that he/she has been unfairly dismissed on grounds of exercising his/her rights to flexible working under s104C ERA 1996 / that he/she has been unfairly dismissed on grounds related to union membership or activities including a lockout/strike or other industrial action under the Trade Union and Labour Relations (Consolidation) Act 1992 by reason of a transfer of an undertaking under the Transfer of Undertakings (Protection from Employment) Regulations 1981.

Redundancy
That he/she is entitled to a statutory redundancy payment under ERA 1996.

Discrimination
That he/she has been discriminated against, dismissed, subjected to a detriment, harassed or victimised on the grounds of or a reason relating to sex/marital status/trans-gender status/race or ethnic origin/disability/sexual orientation/ religion or belief/age under the Sex Discrimination Act 1975/the Race Relations Act 1976/ the Disability Discrimination Act 1996/ Employment Equality (Sexual Orientation) Regulations 2003/ Employment Equality (Religion or Belief) Regulations 2003 or Employment Equality (Age) Regulations 2006.

Detrimental Treatment
That he/she has been subjected to a detriment on health and safety grounds under s44 ERA 1996/in relation to the exercise of his/her working time rights under s45A ERA 1996/on the basis that he/she made a protected disclosure under s47B ERA 1996/ on the grounds that he/she sought to exercise his/her rights in respect of accompaniment at disciplinary or grievance hearings under the Employment Relations Act 1999/on grounds that he/she sought to exercise his/her rights under the National Minimum Wage Act 1998/Working Time Regulations 1998:

Deductions from pay/breach of contract
That he/she has suffered an unlawful deduction from wages under the Employment Rights Act 1996 and/or a breach of his/her contract of employment;


Pay/Annual Leave
That there has been a breach of his/her right to receive guarantee pay under the Employment Rights Act 1996/ a breach of his/her rights to the national minimum wage under the National Minimum Wage Act 1998/ a breach of his/her rights in respect of annual leave under the Working Time Regulations 1998;

Protection from Harassment Act 1997
That he/she is or may be the victim of a course of conduct prohibited by the Protection from Harassment Act 1997.

11. This Agreement is also intended to achieve a full and final settlement of all Other Claims. In this Agreement “Other Claims” means any claim in connection with the Employee’s employment or its termination which the Employee may have against the Employer, any Group Company or any of their officers or employees whether under the law of England and Wales, the law of another country, European Union law or otherwise and whether the claim may have already risen or arise in the future and whether or not the Employee has or could have knowledge of it apart from claims in respect of pension rights accrued by the Employee under an occupational pension scheme, and also claims arising as a result of an industrial disease which has not been diagnosed and of which the employee is unaware at the date of this agreement.
12.

13. Accordingly, and as a fundamental condition of this Agreement, the Employee accepts the Termination Payment and other arrangements and payments set out in this Agreement in full and final settlement of the Specific Claims and the Other Claims and he/she agrees that all such claims are irrevocably waived by means of this Agreement.

14. The Employee:
a) warrants that he/she has received independent legal advice from (name of adviser) (the “Employee’s Advisor”) as to the terms and effect of this Agreement and in particular its effect on his/her ability to pursue his/her rights before an employment tribunal;
b) warrants that, having given the Employee’s Advisor all relevant facts and having received advice from the Employee’s Advisor he/she is not aware of any other claims that he/she may have in connection with his/her employment which are not included within the definition of Specific Claims;
c) acknowledges that the Employer has entered into this Agreement in reliance on these warranties; and
d) will ensure that the Employee’s Advisor promptly delivers to the Employer a signed certificate in the form set out at Schedule 1.

15. It is agreed that the conditions regulating compromise agreements contained in the following legislation are intended to be and have been satisfied in relation to this Agreement: section 77(4)A of the Sex Discrimination Act 1975 (in relation to claims under that Act and the Equal Pay Act 1970), section 72(4)A of the Race Relations Act 1976, section 288(2)B of the Trade Union and Labour Relations (Consolidation) Act 1992, paragraph 2 of Schedule 3A of the Disability Discrimination Act 1995, section 203 (3) of the Employment Rights Act 1996, regulations 35 (3) of the Working Time Regulations 1998, section 49(4) of the National Minimum Wage Act 1998, regulations 41(4) of the Transnational Information and Consultation etc Regulations 1999, regulation 9 of the Part-Time Workers (Prevention of Less Favourable Treatment) Regulations 2000, Regulation 10 of the Fixed-Term Employees (Prevention of Less Favourable Treatment) Regulations 2002, paragraph 2(2) of schedule 4 of the Employment Equality (Sexual Orientation) Regulations 2003, paragraph 2(2) of schedule 4 of the Employment Equality (Religion or Belief) Regulations 2003, regulations 40(4) of the Information and Consultation of Employees Regulation 2004, paragraph 12 of the schedule to the Occupational and Personal Pension Schemes (Consultation) etc Regulations 2006 and paragraph 2(2) of the Employment Equality (Age) Regulations 2006.

16. This Agreement sets out the entire agreement and understanding between the parties and supersedes any previous agreement between them or their advisors concerning the Employee’s employment and its termination.

17. Notwithstanding that this Agreement is marked “Without Prejudice” and “Subject to Contract”, it will become open and binding when signed by both parties.

18. In accordance with the Contracts (Rights of Third Parties) Act 1999, any employee or officer of the Employer and any Group Company will have the right to enforce paragraph 9 of this Agreement.

19. In this Agreement, “Group Company” means any associated employer within the meaning of section 231 of the Employment Rights Act 1996.


Signed on behalf of Romec Limited Date

Signed by xxxxxxxxxxxxxxxx Date



Schedule 1


Certificate from Employee Advisor

I hereby certify that:

1. I am a relevant independent advisor within the meaning of section 203 of the Employment Rights Act 1996, being a (Solicitor of the Supreme Court of England and Wales holding a current practising certificate/barrister etc) (job title and name of trade union/advice centre …. etc). (I am duly authorised by (trade union/advice centre) to give such advice and confirmation of such authorisation is attached to this statement). (I am a Fellow of the Institute of Legal Executives employed by a solicitor’s practice and have been supervised when giving the advice to the Employee by a practising solicitor).

2. I have advised xxxxxx as to the terms and effect of the compromise agreement to which this certificate is attached and in particular as to its effect on his/her ability to pursue his/her rights before an employment tribunal.

3. There was in force at the time the advice referred to above was given, a contract of insurance or an indemnity covering the risk of a claim by xxxxxxxx in respect of loss arising in consequence of the advice.

Signed by

Name of firm/advice centre/trade union/legal executive

Address

Date


Schedule 2

The following reference will be provided by an employee of the Human Resources department on request from a prospective employer.


To whom it may concern,

Reference for xxxxxxx


I can confirm that xxxxxx was employed as a xxxxxxx on behalf of Romec from xxxxxxx to xxxxxxx. His/her reason for leaving the business was due to mutual consent.

I believe him/her to be a trustworthy person and have no cause to believe that he/she would be unsuitable for the position for which you are considering him/her. I can confirm that xxxxxx had a clear conduct/attendance record.

Yours sincerely,