Royal Mail Pension - Spot The Alternatives

[Night Tonic]

http://www.hellmail.co.uk/postalnews/te ... 4&zoneid=3


28 March 2008 by Mark White - © Hellmail.co.uk


On Monday, postal workers in the UK will have seen their pensions officially rewritten as Royal Mail closes the existing scheme to new entrants and moves to a pension scheme based on career salary.

On the very same day, bizarrely, the outcome of a recent CWU ballot on pensions will be announced. With a high probability that the result will mirror a recent vote by Unite members (which represents many Royal Mail managers) to reject the reforms outright, the key question is what next?

Dave Ward, Deputy General Secretary of the CWU warned "Once the result of our consultative ballot is announced next week we will step up our campaign to secure a satisfactory outcome by whatever means necessary."

'Whatever means necessary' could indeed mean further strikes but with Royal Mail already battered by industrial action, slow progress in terms of modernisation, competition poised to grab even more business, a deficit that could see the entire pension collapse if left, severe criticism by Postcomm and Postwatch, and sympathy for postal workers at an all time low, there seems little to no chance of there being any 'reversal' (as CWU leader Billy Hayes put it) of
the reforms.

It is also unclear whether an outright rejection, which would at least make a strong point, will actually lead to further strike action. Many are unhappy about the changes but may not see any mileage in further strikes as a solution. Royal Mail is already in very rough waters.

Much to the annoyance of the far left, most Brits are rather more used to (even comfortable with) looking for alternative employment if a job doesn't suit, and these days, are far less sypathetic to a workforce that holds the country to ransom to achieve it's aims - business especially so. It may have been a common tactic in the 70s, but Royal Mail workers have been largely shielded from the cut and thrust of the outside world, and stoppages and picket lines find much less favour than they once did. Added to which, Royal Mail is losing money through downstream access, and the ones likely to be hurt the most are postal workers themselves. With no realistic idea for where the money is to come from, it would be tantamount to tackling the Romans with pop guns.

The most unlikely scenario, and one which some postal workers seem to envisage, is Gordon Brown pottering out of number 10 like Sgt Wilson from Dad's Army and asking the country if it "minded awfully dipping into it's pockets and helping postal workers out". Given similar pressure on all pensions (some of which folded completely) and small to medium sized businesses already annoyed after postal services ground to a halt last year, the answer will be a resounding 'no'. Besides, few in Britain see Gordon Brown as the 'friend of pensions' at all. The best the CWU can expect is for Gordon to hang a 'do not disturb' sign on his door and pull down the blinds.

Many from the extreme left see strikes as the embodiment of true people power, and with memories of Thatcher's wholly unfair poll tax still ringing in my ears, I can see that point of view - lot to be said for it. The extreme right however, would regard it all as a bunch of sad people standing around waving plaquards, and increasingly, the right-wingers out-number the left in this country - even in a Labour government.

Postal workers did reach some kind of settlement on pay and working conditions but as far as they were concerned, pensions were still to be decided. Royal Mail however, began a 60 day consultation which gave workers the opportunity to voice their concerns, after which Royal Mail announced more or less the same solution leaked last year. Clearly the economics involved in getting a grip on the pension deficit had much to do with the final decision and the Pension Trustees needed to see a workable reform to protect the interests of members.

So, is it fair that postal workers are having their pensions restructured and some having to work as long as 65 on a job that often requires a great deal of walking? No, of course its not but at the same time, the vast majority of the pension fund will be secured and eventually plugged - many have been far less fortunate with private pensions. The reforms were never likely to be heralded as a triumph by those affected in whatever form, but it could certainly be a good deal worse - more so if workers help shrink the business further.

Many inside the CWU blame this and the previous government for a long pension holiday and that the money should simply be 'put back' but few really see that as a viable or even affordable solution and since we're all living longer, reform would still have to be introduced. All pensions face similar difficulties, and Royal Mail is itself paying extra money into the pension to clear the deficit, plus some additional funds from government.

No, any fight back against changes to the pension will need more than just the withdrawal of labour and then hope for drier weather. An alternative would be good - a well thought out plan even better, preferably a year ago, not after the event.

These reforms, popular or not, are likely to be the best and only solution for all those in the scheme. The Trustees clearly thought so and have accepted the reforms. Quite what workers have in mind is unclear for now, but business will be far from forgiving when it chooses a postal operator if Royal Mail is plunged into industrial strife once more. Like many other industries, those doing the fighting often come off the worst.

© Hellmail.co.uk - Postal Industry News

[johno47]

Erm yes i would like Brown to dip into the goverments coffers, to pay back the £5.2 billion it took out of the business for 20 years whilst paying nothing into our pension...UNITY IS STRENGTH.

[edinburghsteve]

What ballot, i never received anything??? Although our office doesn't have a union rep.

[Tman]

Pretty much sums it up for me.
Not the perfect solution, but probably the best we're going to get, and a lot better than many got in other companies.

[dvbuk55]

What ballot, i never received anything??? Although our office doesn't have a union rep.

Ours does and nor did I.

[Broxi51]

What ballot, i never received anything??? Although our office doesn't have a union rep.

Ours does and nor did I.

Not received ours either

[Broxi51]

http://www.hellmail.co.uk/postalnews/te ... 4&zoneid=3


28 March 2008 by Mark White - © Hellmail.co.uk

Many inside the CWU blame this and the previous government for a long pension holiday and that the money should simply be 'put back' but few really see that as a viable or even affordable solution and since we're all living longer, reform would still have to be introduced. All pensions face similar difficulties, and Royal Mail is itself paying extra money into the pension to clear the deficit, plus some additional funds from government.

Many inside the CWU blame RM & the Government for taking a pension break but still stealing OUR money during that time. They could easily have said we wont be taking any pension money off of you because of getting taxed and left us to use the money elsewhere but no they STOLE it & if they cannot give us the pension they guaranteed when we first started then give us our money back they stole during the break plus the interest we could have got with it

[BELIAL]

What an absolute load of corporate drivel. Fancy even attempting to give it weight by calling it" news" .
Pure and poor propaganda . The more these bosses errand boys pump out this, 'no point striking,you've lost already,it's hopeless ,please don't strike' the more you realise how desperate they are and just how effectively we hit them where it hurts when we do take action. Mind you if they win ,they do stand to make a lot of money by stealing our pensions .