Report from National Briefing

[Tamsky]

Report from National Briefing – Friends House, London

Dave Ward – Events have emerged over the last few weeks which have brought the CWU back into conflict with the employer and Government. This is not a position the CWU wanted and is entirely due to the actions of the employer. There is no way that the CWU can accept this.

Colleague Shares – The employer has deliberately timed the announcement of a new business plan to undermine the value of colleague shares outlined in the national agreement.

Job security – The new business plan has brought into question key commitments, in particular, over job security. This has brought an angry response from the membership, this anger needs to be focussed on the employer.

Proposal to deal with these have been agreed by the Postal Executive, this document needs to be shared at meetings of members over the coming weeks.

Wider Context – As a trades union the CWU the huge problems facing the Postal industry, the scale of which means that 'no change' is not an option. The CWU believes this is best achieved by following the national agreement. This is not about the CWU walking away from this agreement. As members try to make sense of the range of issues facing them the CWU must play its role.

Moya Greene has met the Postal Executive on two occasions to explain RM's reasons for a new business plan.. The CWU do not agree with the RM position and more meetings are planned. This week saw a joint meeting over colleague shares to explain how shares worth £1400 in September 2010 could be come worthless six months later. The CWU research department are going through the figures and a further meeting is planned. Be under no illusions that the colleague shares decision is an attempted scam by the employer. RM deliberately planned the announcement of a new business plan in the weeks before £200m was due to be paid out to CWU members.

The CWU position on colleague shares has been constant. We said it was a scam based on phony shares in 2006/2007 when Mandelson/Leighton/Crozier thought they could buy workers consent to privatisation. The CWU argued at that time that the money should be used to increase basic pay and protect pension rights.. RM issued the shares and now members expect to get the money promised. Since that time the CWU has argued for maximum possible pay outs. The Business Transformation agreement brought an end to the colleague shares scheme through two final payments and RM need to honour this. The blame for this debacle rightly rests with RM and the Government.

The national officers have informed RM that trust between them has returned to zero. A letter has been received from Moya Greene and this will be shared with Divisional reps and the Postal Executive in determining the CWU response.

The Tory Government must hold its hands up over this matter. They control the valuation process. The Government is currently in the process of approving RM's new business plan.. The CWU has no doubt that these decisions are about advancing the sell off through manipulation of the Company's worth. This brings the CWU into direct conflict with the Government and they need to understand that the CWU will continue to fight regardless of the decision on privatisation. We have a fundamental role to benefit our members.

London
RM took a deliberate decision to announce the results of the London review to the media before the workforce in the same week as the announcement on colleague shares. Members should be under no illusion that this is designed to create tension within the CWU. At some point there will be rationalisation in London but the way RM intend to deal with the people issues is unacceptable to the.CWU. They are not being honest with the workforce, people are unable to follow the work and compulsory redundancies will result. The Postal Executive has endorsed the call for responsive action in London over compulsory redundancies. No=one should be under any illusion that if this is accepted in London it will be forced through every other region..

There will be a variety of opinions on how to respond to these threats. The Postal Executive have suggested a strategy which need to be discussed in the coming weeks. RM have been advised that they have until the end of April to respond in a positive way or face some national action.

On colleague shares the rules of the scheme make it unlikely that the scheme will be retrieved, however RM owe members that money and they need some alternative which supplies the cash. RM need to explain the reasons behind the new business plan and how it delivers agreed rewards to the workforce. We need to strengthen and extend the job security aspects of the national agreement.

Less than a year ago Crozier pocketed £2.5m saying what a great job he had done in returning RM to profit. Now we see the truth of that. It is a key demand of the CWU that RM open the books to independent scrutiny. Only if we share a view of the issues will progress be made.

All of this is clearly linked to the proposed sell off, the only way to defeat the proposals is to move forward on the political and the industrial front. The Labour front bench need to be honest about what has happened and need to speak up for the industry.

It is too early to talk about strike action and the document approved by the Postal Executive outlines what can be done now. This document needs to be shared with members, seek their views and the position will be assessed at the end of April

Billy Hayes
Proposed privatisation
The CWU has worked hard over this issue. Various rallies and demonstrations have been held up and down the country. At the same time there has been extensive lobbying of all MP's and members of the House of Lords during the process of the Bill.
It is now expected that the Bill will move out of the House of Lords on 6th April and go to report stage in mid May when there will be a final vote on the matter.
We need to understand that the Bill does not allow for a 'lift and shift' of Royal Mail Group. The Bill proposes that RMG be split into 7 sections. The CWU is due to meet with the responsible Minister Ed Davey soon to discuss various aspects of the Bill.

A Tory MP has submitted an Early Day Motion 1408, which seeks to protect the USO. To date it has been supported by 27 Liberal and 18 Tory MP's. Members are asked to lobby local Labour MP's to add their names to the EDM prior to the CWU meeting with Ed Davey on April 6th.

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Phil Browne
London Mail Centres
RM announced the proposed closure plan publicly through the media before it informed staff concerned. The CWU has put alternatives to RM which deals with the people issues and has been ignored. Now an independent review has highlighted that RM cannot achieve the closures without substantial compulsory redundancies. RM issued these plans to the media to put it in the mind that this is only a London issue. This could not be further from the truth. If they succeed in London this will be rolled out elsewhere. The issue is not about Mail Centre closures, it is about compulsory redundancies and needs a national response.
Martin Walsh – London Divisional Rep explained the numbers and localities involved. London is not arguing that no mail centre should close, however, they are arguing that there should be no compulsory redundancies. The CWU will not stand by and allow this and the Postal Executive has allowed ballots for action in the sites concerned. If London does take strike action we cannot allow other localities to do London's work and the CWU need a strategy to aid this.

Dave Ward
Pensions
A number of issues mean continuing uncertainty over pension provision. The CWU has campaigned for the Government to take on the Pension obligation. Now the Government have planned to take on the pension following any sell off, they also plan to take £20b of pension fund assets which guarantee pension pay outs. The CWU needs an assurance that this commitment remains.

How will Government plans for a public service pension plan affect the RM pension fund.? The CWU has been assured that the RM pension fund will be ring fenced, this needs to be confirmed.

Another threat comes from Government proposals to calculate pension entitlements using the Consumer Price Index as opposed to the Retail Price Index. This will have a detrimental impact on all pensions. The CWU is taking legal advice and lobbying both RMG and the pension fund trustees to maintain the RPI calculation. The Pension Fund was established using RPI and this has been conveyed to the Trustees. It remains to be seen what the Trustees decide.

[fishtank]

Thanks Tamsky...there's plenty to ponder in there.

[belle smith]

This is not about the CWU walking away from this agreement.

Alas, i didn't think it would be.

[fishtank]

This is not about the CWU walking away from this agreement.

Alas, i didn't think it would be.

To be fair they couldn't say that even if they felt it.
RM would just use it against them.
but i do share your....
It is not a popular agreement at membership level no matter what spin is put on it.

[belle smith]

This is not about the CWU walking away from this agreement.

Alas, i didn't think it would be.

To be fair they couldn't say that even if they felt it.
RM would just use it against them.
but i do share your....
It is not a popular agreement at membership level no matter what spin is put on it.

yes, i know.
It's lkie i said before we have no were to go except defend the agreement.
Like you say it's not popular....who at membership level wants to defend it?
Oh and i think they do believe in the agreement!

[g06scot]

So after the 28th we will probably have a ballot for IA as its unlikely RM will play ball

It was mentioned in another thread about WTR - can that be decided at branch level? Would help to heap the pressure on RM in the run up.

[belle smith]

So after the 28th we will probably have a ballot for IA as its unlikely RM will play ball

I would be astonished.

It was mentioned in another thread about WTR - can that be decided at branch level? Would help to heap the pressure on RM in the run up.

No you hvae to go through the PEC for strike ballots. I doubt you will get one.
You could always try and get staff at your unit to "do the job properly" Then again maybe not.

[nataddick]

Following the annoucement on the worthless ColleagueShares, I dug out a couple of documents from my work file. Low and behold in a document from RM entitled ' A modern Royal Mail' dated 16.03.10 on page 2 under the heading Benefits to you : over the next three years it states 'ColleagueShare buy/back payments - your shares are currently worth up to £1072. They will be bought back, half in 2011 and half in 2012 at their new value which should be higher as a result of getting on with transformation by agreement.'

The CWU issued a brochure prior to the ballot headed Business Transformation 2010 and Beyond - A Summary of the Agreement. On page 2 under the heading Impoved Reward Package - one of the bullet points is 'As a result of this agreement colleagueshare buy back options in 2011 and 2012 should now be enhanced.'

Clearly both sides trying to sell the agreement with some positive spin! Is it any wonder members thought they might get some money?

The reasons given by RM for the drop in value to zero are clearly unacceptable. 1. The pension deficit was known at the time of the Agreement, as was the forecast decline in revenues. OK the financial prospects for the company are worse than predicted in 2007 - a poor excuse since the value of the phantom shares should have be adjusted accordingly and this was surely known before the Agreement was reached. The expectation of staff should have been managed properly by telling us the truth much earlier on.

The World Class Mail iniative is within the Agreement and is the main way that the business is trying to improve efficiency and effectiveness - before we take any form of IA (since members lose money) Why not withdraw support nationally for the WCM iniative and slow the rate of transformation ? They can't transform the business without the support of the staff on the frontline.

Finally, is the £1000 (£600 from Colleagueshares) dependent on the new business plan rather than the old one and when are RM going to communicate the key points of the plan to staff.

[fishtank]

when are RM going to communicate the key points of the plan to staff.

Well...it was a bit strange of the report to say...

Job security – The new business plan has brought into question key commitments, in particular, over job security. This has brought an angry response from the membership, this anger needs to be focussed on the employer.

When the membership have absolutely no idea what the new business plan looks like....

[Tamsky]

Make sure you get to read the PEC document. It outlines the PEC strategy on the latest crisis.

[Geezer]

Nice one Tamsky
Thanks for the Info !

[postmanpat]

Make sure you get to read the PEC document. It outlines the PEC strategy on the latest crisis.

Tamsky, where or when will the rank n file members get to see the PEC document??

[daveyeff]

when are RM going to communicate the key points of the plan to staff.

Well...it was a bit strange of the report to say...

Job security – The new business plan has brought into question key commitments, in particular, over job security. This has brought an angry response from the membership, this anger needs to be focussed on the employer.

When the membership have absolutely no idea what the new business plan looks like....

the new business plan is their 'plan b'.,,,,,,,,pity we didnt have one

[lovejoy]

Make sure you get to read the PEC document. It outlines the PEC strategy on the latest crisis.

Tamsky, where or when will the rank n file members get to see the PEC document??

was browsing and saw this so.............



COMMUNICATION WORKERS UNION



CIRCULATED TO THE DOCUMENT ‘A’
POSTAL EXECUTIVE ON
CWU Response to Royal Mail Groups New Business Plan & Recent Announcement on Colleagueshare

Over the last few weeks some very difficult issues have emerged which taken either in isolation or together have the ability to destabilise the Business Transformation Agreement, heighten tensions over job security, destroy trust and potentially bring the Union into serious conflict with the employer.

These issues include:

- The emergence of a new business plan that downgrades the future expectations of the company.
- The impact the new plan is likely to have on existing agreements, most notably Business Transformation.
- The fact that the money our members expected from Colleagueshare appears to have been wiped out.
- Ongoing problems with deployment of Business Transformation, mostly as a result of an overestimation of what can be achieved in delivery revisions.
- Growing uncertainty of future pension entitlements.
- The announcements in London, which given the numbers involved, brings into sharp focus the potential for compulsory redundancies.

In our deliberations to determine the correct policy to respond to the employer and move the Union and our members forward, it is important that we set these issues in a wider context.

Firstly, the convergence of unfair competition, the pension deficit, modernisation and a postal market that is shrinking from the impact of the digital age – means even the most sceptical person must now recognise the challenges we all face are both very real and unprecedented.

Secondly, the Government policy to privatise Royal Mail and separate Post Office Limited, poses a real threat to the universal service and a nationwide network of Post Offices. In turn these Government policies could bring about yet more attacks on our member’s jobs, terms and conditions.

Thirdly, in addition to the above, an unfavourable external environment, alongside a sense of a growing financial crisis within the company, means that more than ever job security will increasingly become our member’s number one priority. We should be aware that the company are likely to undertake further communications to highlight what they see as a very difficult financial position. Furthermore, the company will make the point that industrial action or the threat of it is likely to damage the future. The Postal Executive have recently had first hand experience of the company’s position in the two sessions held with the Chief Executive Moya Greene.

There is clearly a lot for us to consider and there are no easy answers or solutions. It is against the background of all the information set out in this document that we must now respond to these recent developments.

A CWU response

Not surprisingly, early indications suggest that Royal Mails announcements have seen a range of views expressed from Representatives and members, including:

- Feelings that they have effectively been robbed of money they expected and in some cases no doubt already spent.
- Anger and resentment that any remaining trust has been betrayed.
- On Colleagueshare some people are saying they always thought the scheme was a con.
- Inevitably a minority will as ever try to blame the Union.
- Some people are saying we should immediately pull out of the Agreement and others make the point that this is exactly what management want us to do and that we would be leaving ourselves in an impossible situation.
- There are those who call for a strike and those who will be worried about this prospect

In a democratic organisation, when difficult situations arise, there will always be differing views on how we should respond. Similarly, in all organisations there will be a small minority who seek to use such situations to promote other agendas. However, the vast majority of CWU members will be asking the question “what is the Union going to do about it?” and they will want and expect us to address their legitimate concerns. For a lot of our members they have yet to understand the potential consequences that a new business plan could have on our existing agreement and we will need to engage in further communications on this aspect.

Responding quickly with a letter to member’s home addresses has helped and now we must build on those messages with a more detailed policy.

Our strategy must be to unite the Union and direct any anger to where it rightly deserves to be – against the employer. Since the company’s announcement the Officers have now had the opportunity to weigh up all the issues involved and propose that we move forward in accordance with the detailed policy set out in Appendix A.

Update on recent meetings

In the last few days the National Officers met Royal Mail at the NDG meeting with Roger Poole and ACAS present. We left the company in no doubt that as a result of their recent actions we are now in a very serious situation. This was followed by a meeting with Mark Higson where the same message was conveyed. Whilst these meetings were taking place a letter was received from Moya Greene which makes interesting reading and offers the opportunity for urgent talks on a range of issues. The Union will take up this offer and we should be seeking to put in place a framework for these discussions this week.

Late on Friday the Union, supported by our Research Team, had a more detailed discussion on Colleagueshare with John Duncan Group HR Director, Jon Millidge and Andrew Dalkin. During this meeting the company gave a more detailed explanation of what has happened to Colleagueshare. In essence we did not feel that their explanation to date changed anything. The meeting concluded with us saying we would need to reconvene once we have undertaken a more detailed analysis of the information provided.

National Briefing

Tomorrows Briefing will be crucial in explaining the policy of the Postal Executive and the need to achieve broad support for that policy. We must also outline the role Branches will have in helping deliver the policy. As far as this is concerned we will be asking Branches to convene immediate meetings with all local Reps and then convey the Unions position via workplace meetings and their own communications.

Conclusion

In the short time available the policy contained within this document offers the opportunity to lead a Union response that is strong, resolute, measured and proportionate to the company’s recent actions.

Although this PEC document considers all the emerging issues, it will be necessary to have a policy for each issue on its own merits. Some of these policies will be dealt with in other documents, while this policy concentrates on our response to the company’s new business plan and its announcement on Colleagueshare.

Furthermore, tomorrows National Briefing is timely and will provide the opportunity for the Union to unite around our policy. Our objective must be to turn a difficult situation to our advantage and create a sense of purpose and direction amongst local Representatives and members. This will challenge the company’s position and achieve a better outcome for everybody.


Recommendation 1 - That the Postal Executive endorse the policy lines stated.

Recommendation 2 - That this PEC document be circulated to Branches in
advance of tomorrows briefing.

Recommendation 3 - That the policy adopted by the Postal Executive be
Subject to further communications with local
Representatives and members.

Dave Ward Ray Ellis
DGS(Postal) Assistant Secretary

Bob Gibson Terry Pullinger
Assistant Secretary Assistant Secretary

Phil Browne
Acting Assistant Secretary

Appendix A

CWU Response


1. In response to the company’s new Business Plan and recent announcements on Colleagueshare, the CWU will adopt a policy in accordance with the following.
2. The Union reaffirms its commitment to the Business Transformation Agreement – but we recognise we must now seek urgent meetings and a number of written assurances from the company to establish whether or not they intend to honour all elements of the Agreement.
3. On Colleagueshare we will continue to make it clear that we cannot accept the company’s position. We will insist that Royal Mail must maintain the value of the payments expected by our members either within the terms of this scheme or via a new format.
4. In relation to the company’s new Business Plan the Union will insist that a full explanation is provided on the rationale of the plan and its likely impact on existing agreement. The Union will insist that there are new written commitments that Royal Mail will honour pay rises, lump sums, the shorter working week and all other elements of the Agreement within the original timescale agreed. This will include provision for a default position (agreed date) whereby members benefits will be delivered come what may.
5. The Union recognise that the new Business Plan and recent announcements seriously damage the confidence of employees in the job security aspects of the agreement. The Union will now seek to strengthen and extend the job security commitments, including the provision of MTSF and the absolute need to avoid compulsory redundancies. These job security commitments to be at the forefront of any business decisions regarding closures, mergers, transfers and all operational changes.
6. Given Royal Mails failure to adhere to the agreed approach to World Class Mail, we will suspend forthwith all involvement in the future roll out of WCM, until such time that all of our concerns are addressed. In existing WCM sites we will advise members that they should honour their contracts of employment, but should not become involved in any work outside of their contract and or in conflict with other existing National Agreements. We will also insist that the company provide the Union with detailed information on all the costs and anticipated savings associated with the World Class Mail project.
7. We will explain to our Representatives that from now on any attempt by the company to deviate from agreed revision processes must be taken through the Industrial Relations Framework.
8. The Union will be insisting that where problems have been identified with deployment of any aspect of the Business Transformation Agreement, that the company now agree a joint action plan to rectify these problems.
9. We will insist that the company opens up the books for an independent assessment of its finances and Colleagueshare valuations. We will pursue a need for an independent assessment of the real value of the company and all of its assets in line with normal business practice.
10. We recognise that the company’s position on a new Business Plan and Colleagueshare has direct implications with the Governments policy to privatise Royal Mail. This has been discussed with the General Secretary and we will develop policy positions to pursue this aspect directly with the Government.
11. The Union will seek agreement from Royal Mail for a framework for urgent negotiations on all the abovementioned issues. If satisfactory progress is not made in line with the above policies by the end of April, then further consideration will be given to other sanctions against the employer. This will include not agreeing to or supporting development of revisions and/or Industrial Action.
12. The PEC will also consider the need to report the outcome of discussions with the company to Annual Conference via a special report.

[Tamsky]

Thanks Lovejoy - I only had a hard copy and no scanner.