LTB 251/26 – INCENTIVE SCHEME UPDATE FOR DELIVERY UNITS

[POSTMAN]

https://www.cwu.org/ltb/ltb-251-26-ince ... ery-units/

LTB 251/26 – INCENTIVE SCHEME UPDATE FOR DELIVERY UNITS
No. 251/26

21st September 2026

Dear Colleague,

INCENTIVE SCHEME UPDATE FOR DELIVERY UNITS

Further to LTB 176/26 regarding the Delivery Unit Incentive Scheme, this LTB provides an update on the scheme’s progress and performance.

As members will be aware, the CWU and Royal Mail jointly launched the Site Incentive Scheme alongside the deployment of Delivery Model 26 (DM26). During the first qualifying period, only 37 units went live and most deployed midway through the period, meaning no unit completed the full 13-week cycle. As a result, it was difficult to draw meaningful conclusions about the effectiveness of the scheme.

As we approach the end of Quarter 2 and the next payment period, 586 delivery units are now operating with DM26 and participating in the Site Incentive Scheme. Royal Mail continues to share performance data with the Joint Working Group (JWG), and there are encouraging early indications.

At the time of writing:

• 210 units are on track to receive a payment.

• 12,227 Full-Time Equivalents (FTEs) are currently eligible.

• Average earnings stand at £28 per FTE after two of the three qualifying periods.

• 302 units have now completed a full qualifying period.

• A total of £343,800 has been earned across the scheme to date.

While we would clearly like to see higher levels of achievement across the network, these are additional earnings that would not have been available to members without the introduction of the scheme.

There are also positive signs that performance improves as units become more familiar with DM26.

Within the 302 units that have completed a full qualifying period, average earnings increase to £55 per FTE. Looking specifically at the first 60 units to deploy, the average payment rises further to £102 per FTE after two-thirds of the payment period.

However, there remains room for improvement. Currently, around 42% of FTEs and 210 of the 586 live units are on course to receive a payment in the current period.

Monitoring and Review

The JWG continues to meet regularly with Royal Mail to review scheme performance and address concerns raised from the field. One recurring issue has been the construction of unit budgets and the methodology used to determine performance targets.

The JWG is working through this detail with Royal Mail to ensure that the scheme remains transparent, fair and achievable. We will continue to rigorously monitor, challenge and scrutinise the operation of the scheme going forward.

Importantly, Section 2.5 of the agreed Terms of Reference (TOR) states:

“Both parties agree that the intent should be for all sites to have an ability to achieve an incentive scheme payment.”

The CWU will hold Royal Mail to this commitment and continue to work to ensure that all units have a genuine opportunity to benefit from the scheme.

Training and Support

A joint training programme has been agreed and is being rolled out every two weeks as units move onto DM26 and the Incentive Scheme.

Local CWU representatives and Royal Mail managers have been participating in these sessions to support understanding and provide consistent information to employees. In addition, the JWG has developed a dedicated training package for Area Representatives to assist with queries and issues arising from the scheme.

Supporting Materials

The following jointly produced guidance documents are attached to this LTB and should be circulated to representatives:

• Site Incentive Unit Training Pack.

• Site Incentive WTLL Briefing.

• Site Incentive FAQ.

• Site Incentive Manager and Local CWU Representative Guide.

• Site Incentive Frontline Leaflet.

These materials have been developed to explain the scheme clearly and help members understand how payments are earned and calculated.

Any enquiries relating to this LTB should be directed to the Deputy General Secretary (Postal) Department at hford@cwu.org.

Yours sincerely,

Martin Walsh
Deputy General Secretary (Postal)

[tramssirhc]

For anyone unsure how the incentive scheme works here an explanation from Monty Python:

"All right, settle down. Settle down... Now, before I begin the lesson, will those of you who are playing in the match this afternoon move your clothes down onto the lower peg immediately after lunch, before you write your letter home, if you're not getting your hair cut, unless you've got a younger brother who is going out this weekend as the guest of another boy, in which case, collect his note before lunch, put it in your letter after you've had your hair cut, and make sure he moves your clothes down onto the lower peg for you".

[hans solo]

Like how they dont mention which units qualify and how much each unit gets
Its a f***ing shambles

[Valentina@1]

RM making this lot look like fools,running rings round them,it’s embarrassing at this point