RDC And VOC Rationalisation

[fishtank]

No. 278/2012 Ref: 227.04 Date: 13th April 2012


To All Postal Branches With Network Members
To All Divisional Representatives
To All Area Distribution Representatives
To All LGV Representatives
To All RDC Representatives
To All Regional Organisers




Dear Colleague

RDC And VOC Rationalisation

Branches and representatives will recall that the department informed them via LTB 156/12 that discussions were taking place with the business in regard to a National consultation process document for RDC and VOC Rationalisation.

I can now inform you that an agreement has been reached with the business in regard to how the consultation process will be applied and that the agreement was endorsed by the Postal Executive at its recent meeting.

An agreed Joint Letter and Statement are attached to this LTB for your information which provides full details of the process.

Any enquiries in relation to this LTB should be addressed to Terry Pullinger, Assistant Secretary, e-mail: dwyatt@cwu.org quoting reference number: 227.04


Yours sincerely




Terry Pullinger
Assistant Secretary

[fishtank]

RDC and VOC Rationalisation – A Joint Statement by Royal Mail and CWU


We are pleased to attach a copy of the Joint Statement we have reached in regard to future reviews which will be jointly undertaken by Royal Mail and the CWU on our RDC and VOC network as part of the BT2010 Agreement and in response to the changing operational landscape.

The Logistics business continues to change and we need to react to the changes by adapting our sites to ensure our locations are fit for purpose to deliver the most efficient, consistent and reliable service to our customers.

Regional Distribution Centres (RDCs) and Vehicle Operating Centres (VOCs) have felt first hand the impact of volume decline from competition and changes in the mail market.

Against that backdrop it is therefore important that our Logistics Operations are reviewed to ensure they are aligned to the changes taking place within the business whilst continuing to develop our ambition to offer capacity for bulk packets and new products, and be the biggest fulfilment provider by broadening the tracked competitive offering, win a greater market share and grow volumes and revenue.

Consistent with the commitments made in the BT Agreement we need to test and consider the potential capacity in the network for current volumes and, with workload declining more significantly, we need to review our network of RDCs and VOCs to help us respond to the challenge.

The attached document builds on the feedback and lessons learned from Royal Mail Managers and CWU Representatives, who have experienced and been involved in such a process previously. We believe this improves, strengthens and builds on the good work undertaken thus far and that the clarity it offers will benefit the overall consultation process at National, Divisional and Local Level, and will further improve the people processes as part of any potential change.

The Joint Statement is a key expression of our principled and mutual interest approach as we move forward with open joint consultation on transformation issues whilst managing the people impacts together. Both parties recognise that resolving people issues is fundamental to the success of transformation.

As you may be aware, we have been working together over recent weeks regarding how we move forward with consultation on potential RDC & VOC rationalisation and we are now in a position to commence those discussions at our East London DC & VOC and Woking DC.

We would like to reassure everyone that resolving all people issues will be a key component in responding to change and that we are engaging in a genuine process in which no final decisions have or will be made until all parties have had the opportunity to influence strategic thinking and proposals from a fully informed position and consistent with the attached agreement.


Tony Fox Terry Pullinger
Logistics Director Assistant Secretary
Royal Mail CWU

[fishtank]

ROYAL MAIL AND CWU JOINT STATEMENT REGARDING RDC & VOC RATIONALISATION.


Background

The Logistics and Network section of the ‘Business Transformation 2010 & Beyond Agreement’ has within its terms a number of joint commitments and statements of understanding which laid the foundation of the strategic relationship between Royal Mail and the CWU to jointly develop and deploy effective and responsive processes on the issues affecting the business and its employees, with mutual interest solutions being the bedrock of these joint commitments/statements.

With regard to the RDC and VOC Network the agreement carried the following recognition;

‘Royal Mail and the CWU recognised that the combined factors of competition, a new mail centre network, automation, improved efficiency and fluctuating traffic levels, will provide potential business opportunities for economies of scale in respect of the RDC & VOC network. This will result in significant reduction in the number of RDCs over the next three years through mergers and new builds’.

However our agreements also carry other commitments consistent with the concept of a mutual interest culture and these will also be considered with equal status in either party’s proposals developed through the consultation process and these are as follows;

‘The ambition is to offer capacity for bulk packets and new products, and be the biggest fulfilment provider by broadening the tracked competitive offering, win a greater market share and grow volumes and revenue’.

‘Royal Mail Logistics and the CWU have jointly recognised in this agreement the need to innovate new products and services beyond the traditional core’.

‘Employees affected by any changes feel any views and concerns they have expressed have been considered and taken into account and that issues of security of jobs and earnings have been addressed’.

Taking the above into account and the combined impacts of DSA, de-regulation, competition and changes to the Royal Mail operational footprint Royal Mail has advised CWU that it is now in a position to commence consultation on the next phase of rationalising its RDC and VOC network. This will be in line with the “Engagement, Development and Planning” section of the National BT Agreement. The Business Transformation agreement allows for genuine CWU input into the formulation of Royal Mail policy prior to decisions being finalised, in order to take account of both business and employee needs.

Process

It is accepted that in all RDC and VOC consultations, people issues will continue to be one of the key priorities with equal status to other priorities.

The joint aim will be to develop an agreed approach to dealing with people issues that meets this objective via a fully inclusive manpower/operational phasing plan for the whole of the scoped area. Such plans should include current staff profiles, vacancies, earnings expectations, legacy bonus etc, and other functional activities, in each case the plan should confirm that the changes can be completed without recourse to compulsory redundancies or any change to the full-time or part-time status of permanent CWU represented employees who wish to retain their current status.

In parallel to the current mail centre reviews, the current MTSF (VR plus ETE) terms will apply through the full deployment of any outcome of RDC/VOC consultations which have commenced before April 2013.

This is without prejudice to the national MTSF review, originally due in October 2012, but which the national parties have agreed to bring forward as part of the current talks.

Royal Mail and CWU will develop joint preference exercises and where ‘Clear Choice’ is used then a joint session will be held between Royal Mail, CWU and the ‘Clear Choice’ provider to explain the roles and responsibilities of all parties in supporting the work to manage the people impact.

Royal Mail and the CWU recognise they must work together and develop ongoing processes that will identify and resolve any surplus situation, utilising the full range of options contained in the Business Transformation and MTSF National Agreements. This will require employees to be flexible and adaptable when considering reasonable alternative and suitable duty options.

We have discussed the lessons learned and agreed that the most recent review concluded at the Essex RDC and VOC was a good example of how both Royal Mail and the CWU have worked together and built in lessons learned after such reviews. Against that backdrop and the lessons learnt a quick but not exhaustive check list of data to gather is as follows:

 Geographically necessary to retain
 Building capacity for extension
 Capacity for reconfiguration of existing layout
 Capacity available and ability to absorb traffic
 Property details of any new- build RDC’s or VOC’s
 Maintenance costs
 Offices where there is an operational need to do something
 Where there is developer interest, local planning or compulsory purchase order preventing any immediate opportunities
 Whether they are freehold or leasehold
 The current quality of service results
 The employee profile, which should include major changes taking place across all functions within the business and local employment levels, earnings etc.
 Forecast environmental impact
 Detailed forecast financial costs and benefits
 O Licence impacts


All relevant information will be provided via data packs as early in the process as is practicable and supplementary information requests will be provided in a timely manner to allow full and detailed consultation. The CWU will table its responses in a timely manner and it is re-affirmed that all proposals will be meaningfully considered.

Consultation timelines will be in line with the Mail Centre rationalisation approach

Information supplied by Royal Mail should be clearly classified as ‘Commercially Confidential’ or ‘Strictly Confidential’. Other information not marked confidential can be shared. It is recognised that ‘Commercially Confidential’ information may require a non-disclosure agreement to be signed by CWU Representatives.

Both sides recognise that it is important to establish the key individuals for the involvement processes. One Divisional CWU Representative(s) lead(s) for each of the IR Divisions affected should be appointed by the CWU and remain fully involved throughout the process, including Vehicle Services representatives. Equally, working groups should be established involving all key CWU Representatives impacted, either by proposed concentration or de-concentration and ensure that all affected sites are represented and involved from the start. Appropriate release time will be afforded for the analysis of data, preparation, and attendance at meetings, learning/training modules and joint activity.

It is recognised that the CWU may seek independent advice to assist them in understanding any proposal and assist in developing any alternative ideas.

Both parties are committed to the BT2010 Agreement for RDC and VOC rationalisation and the continued development of the progress we have jointly made to date and to build in lessons learned into future reviews. Furthermore it is jointly recognised that it is crucial to jointly develop mutual interest solutions in regard to transformation and the resolution of people’s issues.

Throughout the consultation process both parties accept that timely and joint communication is critical. Both CWU and Royal Mail will work together to ensure appropriate joint communications are developed and deployed at key decision points.

Once the consultation on changes have satisfactorily concluded and the decision made both CWU and Royal Mail will work together to implement the changes at pace.

Against this backdrop all RDC and VOC rationalisation consultations will follow the process outlined in this framework and in line with our commitment in the National BT Agreement.



Tony Fox Terry Pullinger
Director Logistics Assistant Secretary
Royal Mail CWU

[hubbahubba]

So,we have had the Mailcentre cull,now comes the RDC and VOC cuts.So how long to the cull/merger of DO's?

[heathrow86]

"This will require employees to be flexible and adaptable when considering reasonable alternative and suitable duty options." So if my VOC is closed, where would i go? My nearest mail centre? No i forgot it has closed. The next nearest one is to far away. Transfer to Parcelforce Coventry? They will be sold off before then. Or there is always the dole.

[Budfrog]

So how long to the cull/merger of DO's?

That's been ongoing for some time.

[TrueBlueTerrier]

So how long to the cull/merger of DO's?

That's been ongoing for some time.

Indeed it has

http://www.royalmailchat.co.uk/communit ... ng#p483917" onclick="window.open(this.href);return false; Kidsgrove

http://www.royalmailchat.co.uk/communit ... ng#p483110" onclick="window.open(this.href);return false; Cottingley

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http://www.royalmailchat.co.uk/communit ... ng#p476286" onclick="window.open(this.href);return false; Aylsham

http://www.royalmailchat.co.uk/communit ... ng#p472911" onclick="window.open(this.href);return false; Herne Bay

going all the way back to Holbeach in 2007 http://www.royalmailchat.co.uk/communit ... ng+sorting" onclick="window.open(this.href);return false;

http://www.royalmailchat.co.uk/communit ... orting&fid" onclick="window.open(this.href);return false;

[SpacePhoenix]

So,we have had the Mailcentre cull,now comes the RDC and VOC cuts.So how long to the cull/merger of DO's?

I don't think the MC cull is over yet, there's the DMC, SO, PO group and there's PL, TR, EX (think i've missed one off the list) group

[hubbahubba]

So,we have had the Mailcentre cull,now comes the RDC and VOC cuts.So how long to the cull/merger of DO's?

I don't think the MC cull is over yet, there's the DMC, SO, PO group and there's PL, TR, EX (think i've missed one off the list) group

All the artic bays are in process of being converted to take doubledecker trailers,so don't see SO MC going anytime soon,and the BH/DT earlyshift manager was there the other week,checking out the packet operation because DMC's early packet section is at risk of being transfered,or so he said?

[SpacePhoenix]

All the artic bays are in process of being converted to take doubledecker trailers,so don't see SO MC going anytime soon,

Could just as easily be being done to suit a different company, many companies use doubledecker artics so the conversion of all bays to take double stackers doesn't count for anything.

and the BH/DT earlyshift manager was there the other week,checking out the packet operation because DMC's early packet section is at risk of being transferred,or so he said?

If the 2C gets transferred out anywhere I reckon it'll be to BS, along with SO and PO 2C, as they have got that packet sorting machine and with the RDC being on the same site.

[Tman]

The writing's on the wall for SO, whichever way you look at it. Not only IMPs, but the worst performing IMPs. Two-three years left at most.

[hubbahubba]

The writing's on the wall for SO, whichever way you look at it. Not only IMPs, but the worst performing IMPs. Two-three years left at most.

I'll have a tenner with you its still there in 2015?

[Talell]

The writing's on the wall for SO, whichever way you look at it. Not only IMPs, but the worst performing IMPs. Two-three years left at most.

Mech performance means nothing, and is easy to improve through coaching of staff and giving the machines a good scrub (and training the staff to TPM correctly plus kick the engineers for letting it fall into that state).

It has to do with processing times and logistical issues.

[Tman]

It has to do with processing times and logistical issues.

Which is neatly encompassed by an inefficient MC regularly failing, and running twenty year poorly-performing older technology.
Wouldn't necessarily be the sole reason for it's closure/relocation, but it would be a major factor when the new South Central MC is being planned.

[hubbahubba]

It has to do with processing times and logistical issues.

Which is neatly encompassed by an inefficient MC regularly failing, and running twenty year poorly-performing older technology.
Wouldn't necessarily be the sole reason for it's closure/relocation, but it would be a major factor when the new South Central MC is being planned.

Regularly failing?er,no-20yr old technology?IMPS are nearer 15yrs old,but let you off that one...
Clearing all SO/SP 1st and 2nd,and all PO 2c mech,packets,RTS,Tracked etc,hardly the sign of a dying MC,lol-keep trying T.....

PS. The only time they do fail is on really busy days,and thats due to a poorly designed Resign over 2 years ago,another management/CWU fiasco,but thats another story...