How much does RM save when we strike?

Spedley · Post by **Spedley** » 19 Jul 2007, 16:00

I don't know the numbers but with 100,000 employees each losing 8 hours pay at Â£8.50 per hour, that is Â£6,800,000 per day in saved revenue through wages. Then there is National Insurance and pension contributions and any overtime which would have been claimed.
It must be Â£8M per day that RM aren't spending.
I doubt the increase in overtime or any fines they incur will cancel more that half of that amount and not counting any lost business, my guess is that ...

The strikes save Royal Mail Â£4Million pounds per day.

Please point out the errors in my calculations because otherwise I don't see a reason for the strikes to stop.

somerset · Post by **somerset** » 19 Jul 2007, 16:21

SAVES ROYAL MAIL Â£4 MILLION A DAY

So we can all expect a nice fat bonus come next April? Royal mail might be saving millions but businesses and the government our losing money!

Post by **TrueBlueTerrier** » 19 Jul 2007, 16:36

But spedley you forgot to take into account the costs caused by the strike.

OT Payments after strike days
Paying agencies for casuals
Extra Costs because there is more mail to deliver
Paying strike breakers to do nothing.
Costs of getting strike breakers into work
Costs of getting RM propaganda out
Electricity costs for keeping empty or nearly empty offices going.
Paying managers expenses when covering striking offices
Compensation for failed Specials
Paying people who are on strike but its their rostered day off.
Increased Sick Pay payments
Costs of Adminsitration
Costs incurred because deliveries cannot be completed.
Loss of contracts or more mail because of strategic planning by businesses.

This is not exhaustive and would not cover the full amount saved by us going on strike but you have to factor both sides in.

Post by **Carnoustie** » 19 Jul 2007, 17:39

Not quite as straightforward as that, TBT.

The electricity would be on in those buildings anyway if we were at work, so it's not an extra cost. In fact, less power would probably be being used because the managers would be out on the floor dealing with the casuals. Which means they wouldn't have time to put the kettle on and sit drinking coffee all day, or get a moment to switch the pc on and browse the internet

The people on a rostered day off are paid whether we're on strike or whether we're not, so that is not an extra cost either.

On the savings side, there's loads of fuel not used because only a fraction of the normal network runs are made. But then there's the repair costs associated with numpty managers pranging lorries when trying to drive through narrow entrances

goingpostal · Post by **goingpostal** » 19 Jul 2007, 17:52

so in theory then all the money they save over the period of say 5 individual day strike's would amount to an amount that dumb and dumber could then say ok lads we will give you your pay rise and discuss things later about modernisation whilst in reality the money we have all lost through striking has really paid for our own pay rise for a year

sounds like a good plan for them me thinks

Post by **POSTMAN** » 19 Jul 2007, 17:56

Well the way i see it is,and i'll look at my office.
30 peeps on strike.
30x8hrs=240hrs
No extra managers,no casuals nothing.
Back to work,1 bod done 16hrs ot in 2 days = 16hrs
No extra for us so we cut off,work eventually gets delivered within the week at no extra cost.

So rm save 224hrs pay,plus our bonus is affected,london weighting,NI.

Multiply this by a hell of a lot of offices,and what do you get.
Add the MS and some offices with stuff going on,casuals in and the like and the savings overall will still be massive.

jobsworth · Post by **jobsworth** » 19 Jul 2007, 18:03

Why, have casuals been used during the strikes?

ROCKY · Post by **ROCKY** » 19 Jul 2007, 18:33

dont forget to deduct
annual leave
days off
sick leave
special leave
6 week shift staff
they are saving a lot less than you think especially when you add in the costs the managers will be putting in

tasam · Post by **tasam** » 20 Jul 2007, 12:30

Don't forget that not everybody works an 8 hour day.

Most new contracts are only 20 hours, many people are on less than 30 hours per week.

That gives 4-6 hours per day, per person.

RM are probably not saving as much as we think because they still have the mandatory costs to pay.

Post by **POSTMAN** » 20 Jul 2007, 18:24

I'm lost!!
If you have 100,000 + days pay saved.
And only a few 000 hours put back in through docket and what not,as there can't be that much.
The savings would be enormous.