LTB BUSINESS TRANSFORMATION : UPDATE ON NATIONAL TALKS

[Geezer]

Letter to Branches




No: 1080/11 Ref: 24209 Date: 20th December 2011


TO: ALL BRANCHES WITH POSTAL MEMBERS



Dear Colleague


BUSINESS TRANSFORMATION – UPDATE ON NATIONAL TALKS – IMPORTANT INFORMATION


The purpose of this LTB is to provide an end of year overview on Business Transformation, explain the current state of play in national talks and inform Postal Branches of an important decision taken by the Postal Executive.

Overview

Deploying the Business Transformation Agreement was never going to be easy. It was always going to be about delivering very difficult but necessary major change, whilst the company and our members face unprecedented circumstances which threaten everybody’s future.

However, earlier in the year our task was made much harder by the company’s announcement on ColleagueShare and the introduction of a new business plan that prolongs the transformation programme in response to sharper revenue and volume decline than that forecast in the original plan.

Deployment has also been played out against the background of business cash flow problems, difficulties in delivery revisions and the Postal Services Bill becoming an Act of Parliament. Again, the threat of privatisation and uncertainty over pensions, regulation and European State Aid all amount to serious destabilising factors.

In response to all these developments, the Union initially tabled a policy that was placed before a national briefing in March 2011. Subsequently, a wider policy was agreed at Annual Conference (Emergency Motion 3) that brought together the Union’s industrial and political agenda. Eventually, this led to a Joint Statement being agreed with the company for fresh national talks.

As these talks have progressed, tensions have heightened over growing problems, particularly in delivery, with the company squeezing frontline employees to make additional savings under what has been termed “a business as usual approach”. In response the Union had told Royal Mail that we do not see this as part of our agreement and that these managerial initiatives will inevitably damage progress with the agreement.

All in all, it is hard to imagine a more difficult set of circumstances in which to successfully deliver transformation, although it could be argued that CWU members have done well to maintain any kind of momentum and it should be recognised that there has been some notable successes along the way. Despite the problems being encountered the Union remains committed to deploying the agreements we have reached, but we are also determined, where necessary, to hold the company to account to ensure CWU members are treated fairly.

National Talks – Current State of Play

In recent talks, followed up by correspondence from the company, Royal Mail stated that they wanted to conclude national talks by the end of January 2012. The company had recognised, in correspondence, this would need to include final confirmation of 2012 pay, consideration of extended job security, a replacement for Colleagueshare and the possibility of a pay deal for 2013 and beyond. Clearly any agreement would also need to move forward World Class Mail and operational change.

The correspondence received from Royal Mail was viewed by the Executive as a positive development, albeit set against a background of managerial actions in the field that are destabilising revision activity.

At our most recent meeting the company indicated that they needed more time to prepare detailed positions and costings to address the Union’s agenda. However, the main focus of the meeting was the developing position around the company’s “business as usual approach” and the problems reported to Branches by the Outdoor Secretary. The Union could not have made it any clearer that resolving these issues had to be prioritised.

Business Transformation Priorities in the New Year – Postal Executive Decision

In January, the pressure on everybody to deliver workable Business Transformation revisions will greatly intensify, as will the need to make real progress on extended job security, overall reward and World Class Mail. At the same time the Union will be engaged in wider talks to secure our policies on all the issues associated with the Postal Services Act.

From a CWU perspective, the biggest barrier to achieving real progress is management’s current actions, predominately in delivery. The combination of the unilateral Royal Mail initiatives reported by the Outdoor Secretary, alongside unrealistic local budgets/absorption targets, is in some locations placing too much pressure on frontline employees. Whilst management may argue that they had to address an immediate cash flow problem, this short termism is definitely damaging the prospects of delivering sustainable revisions, improved relationships and a culture of mutual interest.

The Postal Executive considered all of these issues at its meeting on the 6th December and agreed that we needed to bring the situation to a head. It was agreed that the DGS (P) would write to the Chief Executive and put the company on notice that unless a satisfactory solution to the issues outlined in the above paragraph can be found by no later than week commencing 16th January, the Union will have no alternative other than to formally suspend CWU support and involvement in all business transformation revision activity.

The aforementioned decision has not been taken lightly and the Postal Executive continues to recognise the context the business operates within and the need for Royal Mail and CWU to successfully deliver Business Transformation. However, we have reached the point where the current managerial approach must be challenged, if both parties are to make progress in line with the national agreement.

In the meantime, meetings will continue with the employer and the Postal Executive will then meet on the 18th January 2012, to receive detailed reports from the relevant National Officers on the progress made and take decisions as appropriate.

Please ensure that the content of this LTB is communicated to all CWU representatives and our members in the workplace.

Any general enquiries on the above LTB should be addressed to the DGS (P) department, specific functional enquiries to the relevant Assistant Secretary.

Yours sincerely



Dave Ward
Deputy General Secretary (P)

[gb93]

Just wait for the new pay agreement.
2010 & Beyond was supposed to be in final year next tax year with a 3.5% pay rise.
RM want to (will) extend agreement to 2015 & we will get our 3.5% pay rise.
1.5% in 2012, 1.5% in 2013, 1.5% in 2014
HQ will herald they fought hard & got us our 3.5% pay rise.
Just my thoughts.Not facts as of yet.

[fishtank]

I don't see the 3.5% as being under threat gb.
I think the business is aware that removing or trying to renegotiate that would be a non starter.
With RPI hovering around 5% it's a pay cut anyway.
I would question the wisdom of negotiating anything beyond 2013 with the uncertainty facing the business.
I think the whole thing is coming to a head anyway,
Royal Mail senior management have absolutely no control over the Regional,Sector or Delivery Office Management structure.
The company operates like a collection of poorly run franchises...but with less accountability.

[gb93]

Well time will tell as they say.
I also think your last few lines Fish, could apply to the union also.

[london sub]

All talk no action thats what sums up 2011.

[Danelectro]

The company operates like a collection of poorly run franchises...but with less accountability.

so organised along similar lines as some parts of the CWU?

[fishtank]

The company operates like a collection of poorly run franchises...but with less accountability.

so organised along similar lines as some parts of the CWU?

I didn't say that...i may have thought it but i didn't say it.

[dvbuk55]

Well time will tell as they say.
I also think your last few lines Fish, could apply to the union also.

I couldn't agree more. BT2010 has been a monumental disaster. It lacked planning, it lacked regional changeover, it lacked any sort of control from either the CWU or RM. It was a carte blanche for RM to tear the system apart under the guise of modernisation. Even before the full modernisation scheme has been rolled out we have a second wave of Improved Flow Through.

Business as Usual.................. this has been anything but.

To me there is a simple solution from the CWU, no more change until the books have been scrutinised, the modernisation plan, as it stands now, is stabilised and IFT has been properly tested and costed and will not be rolled out until all DOs have completed the Methods and IWT revisions and each and every one has a standard 39 hour week.

The changes go on whilst the talking continues, what is needed is clear and positive leaderdship.

[IcanthelpthewayIam]

dont forget its only a minimum of a 3.5% pay rise in april, if inflations stays as high as it is then size of the actual increase is still to be negotiated

[Talell]

it's not a minimum.

3.5% is stated in the agreement, as the pay increase next April.

However there is a clause that states if RPI stays above what has been forecast (3.5%), then the figure will be revisited.

doesn't say if the revisited figure is an upward or downward move, just that there will be talks over A move.

D. Ward has previously stated that 3.5% increase is the minimum he would accept, if talks were to commence as per above, so yeah.

[dvbuk55]

it's not a minimum.

3.5% is stated in the agreement, as the pay increase next April.

However there is a clause that states if RPI stays above what has been forecast (3.5%), then the figure will be revisited.

doesn't say if the revisited figure is an upward or downward move, just that there will be talks over A move.

D. Ward has previously stated that 3.5% increase is the minimum he would accept, if talks were to commence as per above, so yeah.

I think you'll find the revisitation was dependant on TWO things - RPI ...................AND...........the state of the business. Now will the wise men from the south be getting us Gold, Myrrh, or Frankly FA.

[Godric]

they can stick their business transformation plan up their arse and that goes for the replacement for colleague shares that we never got paid ... the union should head the old saying "Once Bitten, Twice Shy" ... the cry should be no more savings until we get the money we are owed

[dvbuk55]

they can stick their business transformation plan up their arse and that goes for the replacement for colleague shares that we never got paid ... the union should head the old saying "Once Bitten, Twice Shy" ... the cry should be no more savings until we get the money we are owed

Yes once bitten twice shy, now how many bites does it take to say lesson never learned.

[fishtank]

It feels like RM are stringing the union along.
While they talk and talk the changes go on and on.
While the union is telling us to put the brakes on everything Moya is telling us that the New Year will bring a new dawn and everything will change.
It could be funny but it isn't.

[Godric]

they can stick their business transformation plan up their arse and that goes for the replacement for colleague shares that we never got paid ... the union should head the old saying "Once Bitten, Twice Shy" ... the cry should be no more savings until we get the money we are owed

Yes once bitten twice shy, now how many bites does it take to say lesson never learned.

with bozos like hayes and ward in charge the number of bites could be anything because both are as thick as f*ck or as gullable as f*ck