CWU FOUNDATIONS FOR A NEW DELIVERY MODEL

[lovejoy]

FOUNDATIONS FOR A NEW DELIVERY MODEL


Background

1. Delivery work is changing. Automation in delivery offices will alter the balance of indoor to outdoor work . Letter volumes are declining, packets are on the increase and door-to-door work is likely to become a more important part of deliveries. All this means changes in working practices; changes which must be agreed in line with a clear vision for a future delivery model.

2. Royal Mail is working through a five-stage transformation process in deliveries. Phase two, transforming methods, has now been reached and involves accelerating savings and work on delivery spans. Phase three involves automation. It is essential that the CWU has in place a comprehensive ‘blueprint’ for deliveries ahead of this phase in order to satisfactorily influence change.

3. The CWU can embrace automation, improve efficiency and raise morale through a process of active involvement. Royal Mail’s current planning assumptions are driven by monetary savings. While there will be opportunities for cost reductions, Royal Mail must acknowledge that the cheapest way is not necessarily the most desirable given quality of service implications and customer perceptions. If left unchallenged, Royal Mail’s plans will result in wide regional variations in quality of service.




4. Agreement must be reached over a number of core issues in order to facilitate the introduction of an effective new delivery model . These include the following:

· Future working arrangements– including a commitment to future employment and job security;
· Information sharing and engagement in meaningful discussions at all levels;
· Joint understanding of the implications of new technology and improved automation;
· The use of revision tools and planning methods;
· Future trials, terms of reference and guiding principles;
· Maintenance of current and future earnings potential;
· Working safely;
· Delivery methods and structures;
· Delivery spans and specifications;
· Incorporation of door-to-door in a new delivery agreement;
· Enhanced role for Callers’ Offices.


A National Agreement

5. A national agreement covering future working arrangements and delivery methods is essential. It should enable both parties to engage in local discussions, develop effective working relationships and support a smooth transition to a new delivery model.

6. Any agreement must incorporate a clear commitment from Royal Mail to future employment and job security in delivery. Such a commitment is necessary to engage employees in the process of change, foster a sense of security about the future, motivate staff and enable a smooth transition to new working arrangements.

7. Royal Mail must commit to retaining a predominantly full-time workforce in delivery. This will again help provide a sense of security for employees who wish to remain. Part-time employees wishing to retain their current terms and conditions should be equally assured of their future. Opportunity should also be provided for those wishing to progress from part-time to full-time.

CWU Involvement

8. Royal Mail and the CWU must issue a joint statement committing both parties to share information and fully engage in meaningful discussions at local, area, divisional and national level. Such an approach should improve the behaviour of management and CWU representatives, increasing levels of trust and fostering more positive working relationships. Positive working relationships between the CWU and management at local level result in better employee relations in the workplace.

Automation

9. A joint understanding must be reached of the implications of new technology and improved automation, including walk sequencing in delivery units, in both the short and long term, in order to inform ongoing negotiations on a new delivery model. Such understanding will enhance the prospect of meaningful discussions throughout the business and also help inform the debate on the future delivery estate.

10. Royal Mail’s planning assumptions must be challenged if the CWU’s vision of an automated service is to be achieved. Automation can be embraced and can be a positive force, improving efficiency and morale through a process of active involvement. All operational departments must be involved in developing strategy. An understanding must be gained of the impact of automation right across the pipeline.


Revisions, Tools and Trials

11. A joint statement agreeing the use of revision tools and planning methods - Pegasus Georoute, IWT (Delivery Best Practice) - is essential. All databank / planning values should be shared with the CWU and where concerns exist they should be discussed and agreement sought. Agreement is necessary to increase confidence and support in processes at all levels of the business and to ensure the effectiveness and reliability of locally implemented revisions.

12. The CWU has recently agreed to various trials, including car-derived vans, delivery spans and MCAT. A national agreement is necessary to ensure any future trials are based on nationally agreed terms of reference and guiding principles. Input must come from all concerned parties to enable a final agreement or code of practice to be established.

Earnings and Reward

13. Any national statement from the CWU and Royal Mail must commit to maintaining current and future earnings potential. The joint aims of any local revisions must be agreed locally and must ensure that quality of service targets are met whilst also maintaining and looking to improve local earning opportunities. Insecurity with regard to future earnings is otherwise likely to hinder agreement over change.

14. Any revised way of working in delivery must involve a reduction in the working week. It may be necessary for this to be implemented in conjunction with other parts of the industry. The time is right for a shorter working week; its implementation will help raise morale in delivery offices across the UK.

15. A campaign among the membership is necessary to highlight the issue and to draw attention to the range of benefits.

16. A review is necessary into the way in which profits and share methods are currently paid. Opportunities to improve reward – such as Colleague Share and reductions in the estate – must be considered.

Working Safely

17. Working safely is an essential foundation on which to build a sustainable future delivery model. All employees have the right to work in a properly managed, safe and secure environment.

18. Royal Mail should fully support its employees and the CWU by issuing a comprehensive joint statement clearly setting out the health and safety standards that will be adhered to at all times and why. The statement must make it mandatory that all OPGs take their breaks, use the right equipment in the right way for the job and cease the use of private cars on delivery. It must also make a commitment to fair and manageable workloads and to ensuring all working environments are as safe and secure as possible.

19. An agreement on working safely will reinforce Royal Mail’s stated aspiration for safety in the workplace. CWU Safety Reps should play a key role in implementing relevant working practices.

20. A campaign is necessary to engage CWU activists in the principles of ‘working safely’. This should involve Area Delivery Reps and Area Safety Reps. The Voice, mail shots to members’ homes and further campaign materials should be used to raise the issue’s profile.

21. A new delivery model and a reduction in the quantity of indoor work may result in delivery workers being employed for outdoor work only. Such a model may mean members having no physical workplace. The CWU must reach a position on this issue and decide whether it is essential that members have a physical workplace and what the implications might be for the future role of the union.

Delivery Methods and Duty Structures

22. All new delivery methods should be discussed and agreed nationally. These negotiations are critical to ensuring a smooth transition to future delivery methods and working arrangements.

23. Duty structures should be developed locally; however, the CWU nationally must have an input into how those structures are developed and they must remain consistent with the guiding principles.

Delivery Spans and Specifications

24. The CWU continues to reserve judgement as to the urban and rural residential delivery time specification. However, we do believe that there should be a first and last letter time for delivery to urban and rural residential addresses. Deliveries should also occur at a consistent time each day. The delivery time specification should be clearly advertised to the public. Information regarding expected delivery times to individual addresses should be available from local Callers’ Offices.

25. We would like to see a nationally agreed delivery time specification for firms / business mail of between 7am and 10am. This would improve the service to customers, enable Royal Mail to compete more effectively and provide a foundation for the development of other new products and services. Moreover, we want to see a requirement to support SME’s enshrined in the Postal Services Act that guarantees them a consistent and reliable service.

26. The length of delivery spans can be determined locally according to workload and delivery method used, and in line with the principles set out in annex F. There is scope for securing full-time working through the effective use of technology and different methods of delivery as well as through cross functional working. In addition, the use of more innovative attendance patterns - including three-day weeks, four-day weeks and nine-day fortnights - should be encouraged.


Door-to-door

27. Door-to-door must be incorporated in any new delivery agreement; it is not beneficial to separate the issue. Any change will stand a better chance of being accepted as part of an all-encompassing agreement on deliveries.

28. A number of questions remain, including whether door-to-door should form part of measured workload, how to tackle payment issues and the possible automation of the product. Communication with members will be vital. It must be made clear that we can no longer afford to refuse work, but that a balance will be sought that protects pay and jobs and limits the opportunity for the competition.

Callers’ Offices

29. An additional project aimed at redeveloping Callers’ Offices should be established. The current situation is unsatisfactory for both customers and staff. Reduced opening hours and increased volumes of undelivered items have meant greater pressure on Callers’ Office staff and a poorer service to customers. The number of undelivered items is causing storage difficulties in offices, while customers are faced with impractical, often morning-only opening hours, along with long queues.

30. Extending The Callers office hours could also allow the public to contact the delivery office via telephone (number included on P739) to inform them what time / day it would be suitable to deliver (at a small cost) any undelivered items. This would generate extra finance for the business and potential new jobs for our members. It would also assist in developing a delivery register.

31. Callers’ Offices should be redeveloped as a more effective access point to postal services. Offices should act as both a collection and posting point for customers. They should be open seven days a week with opening hours extending beyond normal office hours.

32. Callers’ Offices could also act as a source of information about Royal Mail services and sell stamps and other products. Residential and small business customers could use the Callers’ Office to access information regarding delivery times in their local area. A delivery register could also be maintained containing information as to when customers are able to sign for deliveries and where safe drops are available. Customers could be encouraged to provide their Callers’ Office with this information as a means of reducing the volume of undelivered items and thereby improving the service.

33. Customers could also use Callers’ Offices to make out of hours collections by entering with a swipe card or code and collecting the undelivered item from a bank of lockers. Under such circumstances additional services could be added, such as ATM access. ‘Customer Care’, Royal Mail’s customer service facility, could be returned to local offices thereby improving customer care through access to local knowledge.

Next Steps

34. Our key objective must be to bring about meaningful negotiations with the business over the core issues identified as necessary to facilitate the introduction of a new delivery model. It is essential that this happens quickly and to this end it is our aim to engage CWU representatives at local level as well as to take our campaign to stakeholders who share our concerns over the future delivery service.

35. Our intention is to roll out this document and accompanying presentation at divisional/regional CWU level, to provide activists with a clear blueprint of what we need to achieve in order to facilitate an acceptable and effective new delivery model.

36. In support of our industrial campaign, it is our intention to engage external stakeholders over the implications of Royal Mail’s vision of a new delivery model. There is already much dissatisfaction over delivery times, particularly among small businesses. Automation along the lines proposed by Royal Mail will make deliveries later still. Job insecurity and a more casual workforce will also undermine customer service.

37. We must take this message, along with our alternative vision for a new delivery model, to stakeholders such as the Federation of Small Businesses, Consumer Focus and the British Chamber of Commerce, who share our concerns and who can bring further pressure to bear on the business, the regulator and the Government. In addition, it is our intention to provide branches with the necessary materials to engage with such groups at local level.

Conclusion

38. The work undertaken by delivery workers is changing. New technology, automation and structural change in the postal market are all resulting in the need for a new delivery model.

39. Royal Mail is currently working through a five stage transformation process in delivery. The CWU must put in place a comprehensive ‘blueprint’ for a new delivery model in order to satisfactorily influence change.

40. A national agreement must be reached covering future working arrangements and methods in delivery. Agreement over the following areas is essential in order to successfully influence change and facilitate the introduction of an acceptable and effective new delivery model.

· Future working arrangements– including a commitment to future employment and job security
· Information sharing and engagement in meaningful discussions at all levels
· Joint understanding of the implications of new technology and improved automation
· The use of revision tools and planning methods.
· Future trials, terms of reference and guiding principles
· Maintenance of current and future earnings potentials
· Working safely
· Delivery methods and structures
· Delivery spans and specifications
· Incorporation of door-to-door in a new delivery agreement
· Enhanced role for Callers’ Offices.

41. Our key objective must be to bring about meaningful negotiations with the business over the core issues identified as necessary to facilitate the introduction of a new delivery model. To this end, we must engage CWU activists and members in our vision and take our campaign to external stakeholders in order to bring the necessary pressure to bear on the business.

ANNEX A

GUIDING PRINCIPLES FOR JOINTLY DELIVERING CHANGE IN DELIVERY UNITS


The following principles will form the basis of the new national delivery agreement.


1. Statement regarding future employment / job security

2. Statement on jobs being predominantly full time

3. Statement on CWU involvement at all levels

4. Statement on Georoute & revisions

5. Statement on earnings

6. Statement on D2D

7. Statement on national agreement

8. Statement on fair and manageable workload

9. Statement on PCOD

10. Statement on equipment

11. Statement on New technology/automation

12. Statement on estate/ working environment

13. Statement on duty structures

14. Statement on spans / specification including firms

15. Statement on trials

16. Statement on reward


The intention is to have this agreed as soon as possible and the new agreement concluded no later than end of April 2009.

This document should be jointly signed off by Bob Gibson and Michael Stockdale, jointly distributed using both CWU and Royal Mail logos, and jointly delivered on a shared platform to CWU reps and managers as soon as possible in 2009.

The process for bringing this about will be to set up a joint working group with a number of strands all working simultaneously towards the deadline. Members of the Outdoor committee, supported by the CWU Outdoor department working groups, will deal with the strands.


ANNEX B

CWU INVOLVEMENT


· Royal Mail must engage with the CWU at all levels and commit to negotiation on all issues affecting our members.

· Royal Mail must commit to honour agreements at all levels. There must be no undermining of agreements at Territory, AGM or DSM level.

· An agreed process should be established for the communication and roll-out of all agreements.

· There should be joint training on all agreements.

· CWU reps and Royal Mail managers must play an active part in any involvement process and the deployment of agreements.

· Effective communication with members is vital to keep them apprised and on board. Straightforward communication to members must be provided by branches.

· CWU reps need to be supported Nationally, Divisionally and Locally.

· CWU reps should be able to play an active role in Work Time Listening and Learning sessions.

· Health and safety needs to be embedded in all agreements.

· ASRs must be involved where health and safety is involved, and all health and safety issues must have proper sign-off process.


ANNEX C

AUTOMATION

· Automation is coming, we need to embrace it and make it work for us. Whilst it will improve efficiency, it can also improve morale and raise productivity through a process of active involvement and improved working conditions.

· All operational departments need to gain an understanding of the impacts of all new automation projects right across the pipeline: flat sorting, ILSM’s, legacy equipment and walk sequencing. The requirements for delivery will have to be understood in respect of the processing operation and then similarly the network and especially with regard to the delivery specification.

· Experts from all departments will need map out the pipeline

· Royal Mail’s current planning assumptions are driven by monetary savings. There will be opportunities for cost reductions, but Royal Mail needs to acknowledge the cheapest way may not be the most effective way and it is likely to have a huge impact on quality of service and customer perceptions.

· Royal Mail’s existing assumptions will lead to a predominately part-time delivery workforce and a lack of customer confidence, potentially generating more competition or the demand for it.

· We have to challenge RM’s planning assumptions if we are to stand any chance of achieving the CWU’s vision of a modern automated service.

· Royal Mail, if not challenged are also about to create a postcode lottery. Geographical location will determine the level of service received and the timing of delivery.

· The CWU need to have an agreed code of practise covering the siting of walk sequencing machines and the mail flows to and from them.

· The CWU and Royal Mail need to create the conditions via agreement for a well motivated, well rewarded work force that can rise to the challenge, knowing they have a stake in a viable industry. Resulting in improved efficiency, productivity and better terms and conditions.

ANNEX D

EARNINGS AND REWARD


Shorter Working Week

· We need a campaign to educate the membership and highlight the benefits.

· Change in mindset essential (possibility of clocking in and out?).

· Potential for a gradual process of reduction linked to automation programme.

· Aim to reach 35 hours (Net) over a set period.

· Consider what the union is prepared to offer. Door-to-door and monthly pay are potential bargaining chips.

· Monetary bonus schemes are an obstacle to a SWW.


Reward

· Need to create a mindset that more work enables better reward.

· A quality rather than cost-based scheme using Frontline Fix revenue to help fund.

· 50/50 has no future in the industry when linked to savings above the office budget. If we have a 50/50 scheme then it must be based on hours saved. (our members would have earned a fortune in bonus payments over the last 18 months if that had been the case).

· ColleagueShare money should be diverted into improved terms and conditions.

· Reduction of the estate should be linked to employee reward.

· Any reward scheme must be responsive to any restructuring that impacts upon the industry.

· Need to look at SA and OT payments.

· Could it mean different pay for different functions?



ANNEX E

WORKING SAFELY

· A national agreement must embed the following objectives.

o Working safely - reinforces the employers supposed aspirations to safety.
o A strong statement insisting on legal and business standard conformance as a minimum.
o CWU Safety Rep involvement must be integrated into the agreement.
o Employer must be held to its responsibilities to inform, instruct and train employees with regard to new equipment and safe working.
o Ensure that members are held to their responsibilities, with adequate safeguards.
o Mandatory that meal relief is taken during not at the beginning or end of duty time.
o Health and safety considerations must be embedded in the agreement.

· Winning hearts and minds - consider how to sell the message to activists.

o Working together: ADR / ASR at Divisional meetings with an Outdoor department presence.
o Use the Voice to deliver the message month after month.
o Home mail-shots.
o Campaign materials (badges etc.).

· The workplace.

o Need to consider our position as to whether members must have a physical workplace and if so we must consider how to argue for this.
o Need also to consider what the future workplace will look like.
o The span and model should influence whether or not a physical workplace is necessary.
o The nature or existence of a workplace could be fundamental to our [CWU] future influence or even our existence. This could necessitate staff moving to other workplaces (consolidation).




2009 savings targets are an opportunity to persuade the membership to work safely.


ANNEX F

DELIVERY METHODS AND DUTY STRUCTURES

“Part of a fully integrated end-to-end service, a seven day delivery service that is consistent and reliable, providing the best quality of service for all of our customers.”

· This will be achieved and underpinned by the following:

o Quality terms and conditions (pay, pension, hours)
o Valued and motivated employees
o Security of employment
o Agreed standards and performance levels (Georoute, call rates, walking speeds, sorting and prep)
o Improved attendance patterns (4-day, 9-day, 3-day) utilising cross functional working e.g. combining delivery and collection duties, packets and delivery etc
o Fewer Saturdays
o Better work-life balance
o Better use of part-time (Fridays and Saturdays, cross-functional)
o Improved working environment (all delivery units to have minimum standards)
o Best possible delivery equipment (HCT, EHCT. LWT, CDV)
o Revised spans / delivery time (no set span)
o Resolution of door-to-door (increase in items, revenue and workload)
o New products and services (track and trace, data capture, fulfilment)
o Introduction best use of new technology (PDA, Telemetry)
o Best training and support (regular ongoing training, classroom, on the job)
o Enhanced role for firms delivery OPGs (frontline offering of products and services)
o Best use of Callers’ Offices
o Upstream reliability (end-to-end, designed to meet the delivery specification)

· A 2pm last letter may not be an option in the future, but we need to take into account health and safety issues such as darkness. It may be necessary to protect full-time jobs. However, bringing members on board may be difficult, as will the public, especially small businesses.

· Pouch over shoulder spans should not extend beyond 3.5 hours. Need to consider length of walking time on a CDV route. HCT 3.5 hour span goes to 4 hours, possibly 4.5 hours in future. Could have combined delivering but should not be longer than 5 hours.

· Determinants of span length and issues for inclusion in national agreement:
o Risk assessment
o Fatigue considerations
o Terrain
o Delivery point density
o Delivery method used
o Attendance patterns
o Urban or rural environment
o Appendix (a) of SDD to be integral
o Further research

ANNEX G

DOOR-TO-DOOR


· Consensus among reps and members regarding a new door-to-door agreement will be difficult.

· Door-to-door belongs in a new delivery model because it can affect span.

· It is questionable whether it should be in measured workload, which would affect amount of prep and delivery time.

· Must consider how we tackle the payment issue and the possible automation of the product. (Unit Bonus Scheme?)

· Consider reasons why (not simply the ceiling) and how many contracts are currently turned down.

· Consider different pricing and posting options, e.g. Monday to Tuesday one price, Wednesday to Friday another price and Saturday to Sunday priced as a premium service.

· Communicate the following to members to create a mindset and move things forward:

o There will be a new agreement that will go out to ballot;

o The number of contracts will increase;

o The aim will be to protect an element of pay;

o A route into workload will be found;

o A balance will be sought that protects pay, jobs and limits the opportunity of the competition; and that

o We can no longer afford to refuse work.

[k979aaa]

Are these HCT equipped with toilet's or are they taking the piss.

[Broxi51]

Are these HCT equipped with toilet's or are they taking the piss.

I would assume that toilet breaks will be built into longer delivery spans.
That to me would make it unworkable as you would have to push the HCT's back to the DO, piss, and then push it back out again. Probably take you at least 30 minutes to an hour.

[janitor]

Maybe royal mail will provide Bogbuses.

[DGP1]

[DGP1]

Even better


Shelter and motorised

[brothermagrew]

Even better


Shelter and motorised

Excellent brother but only one delivery pouch can be transported at a time

[axeman]

There are massive problems with health and saftey issues in that document can see a big f.o from the delivery side 41/2 to 5 hrs are they really serious just imagine being out in the cold rain for that period even ray mears said that the cold rain could easily kill you and it doesn't need to be -40 either just a few degrees from 0 . walking for 5 hrs with or without a hct if this doesn't ring alarm bells nothing will im to say the least

[DGP1]

There are massive problems with health and saftey issues in that document can see a big f.o from the delivery side 41/2 to 5 hrs are they really serious just imagine being out in the cold rain for that period even ray mears said that the cold rain could easily kill you and it doesn't need to be -40 either just a few degrees from 0 . walking for 5 hrs with or without a hct if this doesn't ring alarm bells nothing will im to say the least

The only way they can increase the delivery spans is to either give every delivery route a van or to split the delivery in two, main one in the morning then back to the office and then another shorter one Just like what we used to do with a second delivery

[johnnyp]

There are massive problems with health and saftey issues in that document can see a big f.o from the delivery side 41/2 to 5 hrs are they really serious just imagine being out in the cold rain for that period even ray mears said that the cold rain could easily kill you and it doesn't need to be -40 either just a few degrees from 0 . walking for 5 hrs with or without a hct if this doesn't ring alarm bells nothing will im to say the least

The only way they can increase the delivery spans is to either give every delivery route a van or to split the delivery in two, main one in the morning then back to the office and then another shorter one Just like what we used to do with a second delivery

No way will they give everyone a van it would not work,to much costs and not practical,but the other point could be a goer.A 4 hour delivery,2 hours out,back to the office meal break then 2 hours out again it might work The best idea though is a shorter working week,this will keep the delivery span at around 3.5 hours and protect full time jobs but will Royal Mail go for it

[DGP1]

There are massive problems with health and saftey issues in that document can see a big f.o from the delivery side 41/2 to 5 hrs are they really serious just imagine being out in the cold rain for that period even ray mears said that the cold rain could easily kill you and it doesn't need to be -40 either just a few degrees from 0 . walking for 5 hrs with or without a hct if this doesn't ring alarm bells nothing will im to say the least

The only way they can increase the delivery spans is to either give every delivery route a van or to split the delivery in two, main one in the morning then back to the office and then another shorter one Just like what we used to do with a second delivery

No way will they give everyone a van it would not work,to much costs and not practical,but the other point could be a goer.A 4 hour delivery,2 hours out,back to the office meal break then 2 hours out again it might work The best idea though is a shorter working week,this will keep the delivery span at around 3.5 hours and protect full time jobs but will Royal Mail go for it

I agree about the vans not being the solution overall but in certain circumstances it could work (smaller offices 40/50 staff) but I see the split delivery as the way RM may go (with CWU backing) or FT town staff prepping 3/4 frames for PTs to deliver (and deliver one themselves) any way, the job will get worse before it gets any better (if ever ).

[dvbuk55]

Very funny disgruntled.

The trouble with the CWU model for delivery is that we've heard it all before - the snag is the CWU have no idea what RMs plans are and that is by their own admission at the Commons Select Committee - there's plenty of rhetoric BUT just as in the past how do they get RM to abide by agreements - they could have done far more far sooner - everyone has seen the writing on the wall and felt the backlash of Executive Action but it has apparently either been ignored as a complacent or at the very least compliant executive.

In their defence at the select committee two of the three blokes did seem to have a grasp of the problems and the difficulties but had no idea how to get RM to the table.

[guvenor]

you all know how to get rm to the table but our union havnt the balls for it or are in bed with labour simple as that

[Big Daz]

Its becoming increasingly clear to me that we need to look at using modifications to the postal services act to improve IR and force RML to talk to us and abide by aggrements etc. Get it built into the contracts of senior management and link their pay to improved industrial relations.

[Big Daz]

Deliveries should also occur at a consistent time each day.

How? I never thought CWU would come out with nonsense like that!!

I get a piss easy tuesday and bloddy awfull thursday on my delivery, its not possible!!!!! Thats why CWU negotiated longs and shorts to match fluctuating daily workload, does this mean CWU see a end to longs and shorts.