09 Mar 2018, 22:12
NATIONAL AGREEMENT SUMMARY
You will be aware that the CWU has recently achieved a National Agreement covering the Four Pillar issues and pay.
You will, from 12 March 2018, start receiving your ballot paper on whether you support the new National Agreement or not. By now you will have had a union meeting within your London office.
The purpose of this communication is to give you a brief overview of the agreement.
• The Defined Benefit Scheme closes on 31 March 2018 due to the fact that Royal Mail would have to increase from £400 million their annual pensions cost to £1.2 billion.
• It is important that all members know that the individual pension someone has built up to 31March 2018 is safe and is not subject to change.
• The new pension settlement therefore is about what service you have in Royal Mail from 1 April 2018.
• Members who joined after 1 April 2008 are currently in a Defined Contribution Scheme and therefore do not have a service wage in a retirement scheme.
• The CWU has agreed in principle for everyone to be in one pension scheme.
• Royal Mail will pay 13.6% pension contributions and employees will pay 6%.
• All basic pay and pensionable allowances will count towards the new pension scheme.
• The new scheme will be targeted to achieve a similar pension to that of the old POSS (Section scheme but is not guaranteed. A lump sum of 3/80ths of each year of your pensionable service plus any revaluation (once credited) is guaranteed.
• Any pension you build up after 31 March 2018 will have an age 67 receipt of pension date. However, you will have the opportunity to pay an extra 1% into the pension contributions scheme and Royal Mail will match it with 1% and you will feasibly be able to go at aged 65 without loss of pension.
• The pension scheme we are attempting to introduce is called a Collective Defined Contribution Scheme. This was endorsed by parliament under the 2015 Pension Act. However, the writing up of this law known as secondary legislation has not yet been done.
• Royal Mail and the CWU have been meeting with Government Ministers in an attempt to get the Government to agree to Royal Mail introducing the new pension scheme and all parties involved are confident that agreement will be given within 12 months.
• In the interim and whilst both Royal Mail and the CWU attempt to get the Government to introduce the new scheme, there is an interim pension scheme called the Defined Benefit Lump Sum Scheme,
• This interim scheme will mean Royal Mail will pay 15.6% and employees will pay 6%.
• All employees who were in the Defined Benefit Scheme and were employed before 31 March 2008 will automatically be auto enrolled into the transitional interim scheme.
• Additionally, anyone who has done more than 5 years in the Defined Contribution Scheme i.e. 1 year nursery and 4 years DC, will have the opportunity to opt into the DBCB Lump Sum Scheme.
• Any individual who has less than 5 years service in the Defined Contribution Scheme will have their pension contributions increased to 6% and Royal Mail will pay an additional 1% which will bring their pension contributions to 10% on the DC Scheme.
• A pension booklet with your own individual pension illustration will be sent to your home addresses within the next two weeks.
PAY - FULL TIMERS
There will be a 5% pay rise of basic pay, pensionable allowances, scheduled attendance rates and overtime.
This will mean:-
(OPG)Inner London will rise by £25.85 per week
(OPG)Outer London will rise by £24.85 per week
MGV DriversInner London will rise by £29.95 per week
LGV Class COuter London will rise by £30.12 per week
LGV Classes C +EOuter London will rise by £31.88 per week
Functional supplements will also rise by 5%, so:-
Delivery supplement will rise by £1.19 per week
Collections and Processing will rise by £0.46 per week
RDC Functional supplement will rise by £0.63 per week
From April 2019 basic pay will increase by 2% as follows:-
Inner London OPGs will increase by £10.86 per week
Outer London OPGs will increase by £10.26 per week
MGV Drivers Inner London will increase by £12.90 per week
HGV Class C Outer London will increase by £12.98 per week
HGV Class C + E Outer London will increase by £13.73 per week
The pay deal over 3 years is worth per week for full timers:-
Inner London OPG £36.71 per week
Outer London OPG£34.71 per week
MGV Drivers Inner London£42.84 per week
HGV Class C Outer London£43.10 per week
HGV Class C + E Outer London£45.61 per week
Functional supplements will also increase in the pay rise and will stand at on 1 April 2019:-
Processing & Collections supplement£9.95
Back pay based on a full timer on basic pay and where necessary functional supplement and paid on the first week of April 2018 (and before tax):-
OPG Inner London delivery supplement£703.00
Processing & Collections Inner London£684.00
OPG Outer London delivery supplement£666.64
Processing & Collections supplement Outer London£647.66
MGV Drivers Inner London£778.44
HGV Class C Drivers Outer London£783.12
HGV Class C + E Drivers Outer London£828.88
PLEASE NOTE - Any overtime/SA or pensionable allowance will be over and above these numbers
PART TIME PAY
25 Hour Contract Sample
Part Timer Pay
Part timers will also get the 5% from October 2018. In addition, part timers will get two additional pay rises. One in October due to full timers reduction in the shorter working week and another in April 2019 when full timers will have a further hour reduction off the working week.
For a 25 hour contract holder in receipt of the delivery supplement this will mean:-
25 hour Inner London 5% pay rise£16.57
Back pay Inner London 5% £430.82
25 hour Outer London 5% £15.66
Back pay Outer London £407.16
• Functional supplements which increase in line with pay rises will be over and above this.
• Please note any overtime/SA or pensionable allowances will be over and above the basic pay, back pay.
Part timers will get an additional 2.665% pay rise when full timers in October 2018 move from 39 to 38 hours.
Inner London will get 2.665%£9.27
Outer London will get 2.665%£8.76
Please add functional supplement increases as they go up in line with the pay rise.
Pay rise April 2019
Then in April 2019 when the 2% pay rise kicks in this will mean:-
Inner London 25 hours will get per week£7.14
Outer London 25 hours will get per week£6.75
P.S. This is not including the functional supplements which also go up in line with pay rises.
From April 2019
Then when the additional hour off the working week kicks in part timers will get an additional 2.665%.
So for a 25 hour Inner London OPG it is worth per week£9.71
For a 25 hour Outer London OPG it is worth per week£9.17
So for a 25 hour contract holder the 3 year pay deal of which we are already 10 months already into the agreement.
Inner London the 3 year deal per week rise is worth for a
25 hour contract£42.69
Outer London the 3 year deal per week rise is worth for a
25 hour contract£40.34
Please note the increases in the functional supplements are over and above these figures.
In the next addition of the London communications will feature the following:-
(d)Part time review of hours worked.
(e)Independent review into the culture within the workplace.
(f)Future negotiations on a new Delivery, Processing, Collections, Network Area Agreement.
We thank you for delivering such a huge yes vote which has ensured we got our union negotiators into a stronger position to achieve a fair and reasonable agreement.
We want to give you as much information as possible so you can make an informed decision when you vote.
Remember, this union has knocked Royal Mail's proposals for six by standing together and voting yes.
Please exercise your right to vote as you have earned that right by being willing to fight for a better deal.
Thanks for your continued support.
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