LTB 036/2013 - Area Distribution Paragon Revisions

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Letter to Branches




No. 036/2013
Ref: 529.02
Date: 24th January 2013

All Postal Branches
All Divisional Representatives
All Area Distribution Representatives


Dear Colleague

Area Distribution Paragon Revisions

We have received enquiries into the department regarding Paragon Revisions in Area Distribution and the purpose of this LTB is to clarify the most up to date position as we see it.

Colleagues will recall that ‘The Future of Area Distribution Agreement’ was negotiated and agreed in July 2012 and circulated via LTB 567/12 (copy attached for ease of reference).

In the ‘Telemetry Tools to Support Area Distribution Revisions’ section of that agreement you will note that consistent with the ‘Professional Drivers Agreement’ we have made reference to how Paragon will be utilised to assist revision activity.

There are two things which need to happen however in advance of any Paragon based revisions:

1. We have to agree which version of Paragon will be used and a meeting has been arranged with the business for the 7th February 2013 to determine this.

2. Full training must be provided to Divisional/Area and local Representatives prior to the use of Paragon.

Against that backdrop no local agreements should be made or negotiations entered into on Paragon based revisions until the National joint position has been established.

Equally, if units have completed all 3 of the efficiency revisions committed to in the BT Agreement then no new revisions should be entered into until such time as Pay and Reward is agreed for 2013 and beyond, should a longer term agreement be concluded.






Any enquiries in relation to this LTB should be addressed to Terry Pullinger, Assistant Secretary, e-mail: dwyatt@cwu.org or lwright@cwu.org quoting reference number: 529.02

Yours sincerely





Terry Pullinger
Assistant Secretary








Letter to Branches




No. 567/2012
Ref: 511.03
Date: 26th July 2012



FOR THE URGENT ATTENTION OF ALL:

Postal Branches
Divisional Representatives
Area Distribution Representatives




Dear Colleague

National Network Dispute Resolution:

Joint Statement Between Royal Mail And The CWU On The Future Of Area Distribution

Branches and representatives will be aware via National Briefings and Conference debates, that there has been speculation over the Future of Area Distribution for some time. Changes to managerial structures and references to Distribution Operational Design (Distribution OD) had indeed added to such uncertainty.

Against that backdrop the recent National Network Dispute provided the opportunity to move the debate on the Future of Area Distribution forward and we are pleased to attach for your information the Joint Statement that has been agreed with the business, which clarifies the position going forward and contains along with other issues the highlights summarised below:

Commits Royal Mail Logistics and the CWU to articulate the approach to professionalism in the Area Distribution Function.

Builds in the Professional Driver and the BT2012 Agreements to develop a revitalised and efficient Area Distribution function with the culture of mutual interest at its core.

Introduces ambition into the future strategy for Area Distribution and a commitment to deliver new products and increase market share.

Confirms the current levels of MGV pay, including the terms of Motion 28 carried at this the 2012 Annual Conference.

Sets out a process concluding in the BT2010 Agreement Year 1 to 3 commitments as a matter of urgency.

Introduces National and Area Distribution Working Groups to support the development of Area Distribution going forward.

An agreed process including full training for the use of Paragon in Area Distribution.

A defined 3 Stage Area Distribution Revision Process supported by agreed revision principles which maximise the driving content of MGV duties but not precluding the use of OPG driving or non-driving work to prioritise full time duties.

The introduction of Development and Training of MGV drivers including the potential to progress to LGV where opportunities exist to do so.

The deployment of Driver Coaches in Area Distribution with further discussion on the operational model to be undertaken by the National Area Distribution Working Group.

The introduction of minor repairs for MGV drivers with an agreed list of appropriate tasks to be concluded by the end of the month.

Branches and representatives are requested to ensure that the contents of this LTB and the attached Joint Statement are given the widest publicity and brought to the immediate attention of all CWU members employed in Area Distribution. Further information on the deployment and activity associated with this Joint Statement will be circulated in the near future.

Any enquiries in relation to this LTB should be addressed to Terry Pullinger, Assistant Secretary, e-mail: dwyatt@cwu.org or lwright@cwu.org quoting reference number: 511.03

Yours sincerely




Terry Pullinger
Assistant Secretary










JOINT STATEMENT BETWEEN ROYAL MAIL AND THE CWU ON THE FUTURE OF AREA DISTRIBUTION

Background

Royal Mail has re-aligned the managerial structure for Area Distribution with the aim of identifying the line management and function of both OPG and MGV drivers and the appropriate revision processes for vehicles in Royal Mail. This will enable focus on professional revision activity and training requirements, clear lines of IR interface and efficient operations providing excellent customer service.

Royal Mail believe that there is unrealised potential in Area Distribution which can be better realised through well trained professional drivers supported by dedicated professional line management structures allowing Processing, Collections & Delivery management to focus on the indoor operation and delivery & collection requirements.

The Area Distribution Function is made up of a mixture of MGV Professional Drivers and OPGs and the initial proposal of the new managerial structure is to professionalise the MGV drivers in line with the full spirit and intent of the Professional Drivers Agreement.

Examples of the managerial vision in this regard are to have:

Well trained engaged Professional Drivers, where safety is a key priority whilst ensuring that Area Fleets are legally compliant. This includes improved vehicle and driver utilisation, maximising driving content in duties and robust monitoring of drivers’ hours.

In respect of applying the Professional Drivers Agreement (PDA) to all MGV Drivers the new managerial structure proposes to fully implement the terms of the PDA agreement. Initiatives will include robust WTL&L sessions, driver 121s, the introduction of the Driver Coach role, minor maintenance/vehicle checks, end of day debriefs and 4 monthly meetings between the line manager and the driver. In addition to implement the use a variety of telemetry tools to support revisions such as Paragon.

It is against this backdrop that Royal Mail and the CWU, have been in a consultation/negotiation in relation to the Area Distribution Strategy in line with the Business Transformation Agreement and the ‘Engagement, Development and Planning’ Network section of that national agreement, and in so doing have developed an agreed response which fulfils our joint commitments.

Joint Commitment

This Joint Statement has been developed between Royal Mail Logistics and the CWU to articulate our approach to professionalise the Area Distribution function. It is agreed that the approach will be consistent with and in the spirit and intent of the Business Transformation Agreement, the Network approach as detailed in the Business Transformation Agreement and the Professional Drivers Agreement.

This commitment is very important as it reflects our ongoing common objectives and sense of purpose, and offers clear recognition that the relationship between Royal Mail Logistics and the CWU will be a key factor in the contribution that Area Distribution can make to the future success of Royal Mail.

It is recognised that Area Distribution and the Network functions have different roles to play within the business. The operation needs to be reliable, economic, efficient, flexible, transparent, on time every time and ensure that the internal operations of Mail Centres, RDC’s and Delivery, can function in line with their customer, internal operating and people commitments. As such, it is recognised that this activity is not about merging Area Distribution and National Network, or the disbanding of Area Distribution.

The purpose is to professionalise MGV Drivers and the management of Fleet compliance within the wider Network since it is recognised that these functions are the glue that holds the whole of the Royal Mail operation together and ensures that mail arrivals are consistent with the transformation Workplan. This is crucial as it also supports the ability to achieve attendance patterns and duty structures contained in the other functional sections of the BT Agreement, to be delivered at local level.

Our mutual interest culture is the fundamental driver to successful transformation, operational performance and job security, and we believe that a revitalised Area Distribution function can enhance our shared commitments which include:

Our ‘ambition to offer capacity for bulk packets and new products, and be the biggest fulfilment provider by broadening the competitive offering, win a greater market share, and grow volumes and revenue’ by being flexible and responding to our customer needs.

The need to innovate new products and services beyond the traditional core.

Recognition that employees affected by any changes, especially where these may affect working patterns or earning potential feel any views and concerns they have expressed have been considered and taken into account.

Royal Mail reaffirms its commitment that ‘People issues’ will be at the forefront of planning and any people issues will be dealt with in line with our existing agreements.

Distribution Organisational Design

Whilst Royal Mail’s Organisational structure is a matter for the business this change has created some confusion in respect of the Area Distribution activity of MGV drivers, collection work in general and platform and warehouse activities as well as the IR interface. Therefore, clarity in this regard must be established if on-going discussions are to be successful. Equally it is recognised that the CWU representational structure is a matter for the union and will be unaffected by the managerial changes unless agreed nationally as part of a revised IR Framework.

It is recognised that the agreed end state will make clear which OPGs and MGV Professional Drivers report through to the local Distribution Manager.

MGV Pay

To clarify, as agreed within the Professional Drivers’ Agreement:

OPGs undertaking MGV work on a rotation (in line with point 1.8 of the PDA) are entitled to substitution to the enhanced MGV pay rate for the weeks they performed the tachograph duty.

Individuals who perform an MGV duty on a weekly basis will be graded as MGV and receive the pay, terms and conditions for that grade (this is irrespective of the amount of MGV content attached to the duty).

Individuals who performs MGV work on either a rotational or fixed duty basis and who are therefore covered by the Road Traffic and Working Hours Directive will in the first place, be asked to perform any MGV work that becomes available on an ad-hoc basis. In the exceptional circumstances where this work cannot be performed by anyone from these categories, an OPG with the necessary licence can be requested to perform this work on an ad-hoc basis. In these circumstances individuals will receive the relevant Substitution/Overtime Payment for the day.

General Driving Revision Activity

The manner in which Royal Mail Driving duties are organised is as follows;

Delivery Office operations: Delivery & Collection OPG Driving duties are organised inline with the ‘Collection Revisions Process’ and all appropriate Delivery Revision tools.

Delivery Office/ MPUs /Distribution Hub Operations: OPG & MGV driving duties will be organised using a combination of ‘Paragon’ processes the ‘Collection Revisions’ approach and all appropriate Delivery Revision tools.

Mail Centre Operations: Area Distribution OPGs & MGV driving duties will be organised using a combination of ‘Paragon’ processes, ‘Collection Revisions’ approach, along with workload based tools applicable to Indoor working.

Network Professional driving duties are revised using Paragon/DMS.

Area Distribution Revision Activity

Both parties agree that the BT 2010 Agreement year 1 - 3 commitments to efficiency and reward need to be concluded as a matter of urgency.

In Area Distribution deployment of year 3 revisions, in line with the BT Agreement will see all Area Distribution (in Scope) OPGs & MGV Drivers receive the balance of the full £1000 lump sums and the Shorter Working Week/2% pay increase benefits as appropriate and as detailed in the Agreement.

Representation

A National Area Distribution Working Group (NADWG) will be established consistent with that which operates in Network. The make-up and purpose of the group will be agreed jointly.

Area Distribution Working Groups (ADWG) will be established for each MC catchment area. The make up and purpose of the group will be jointly agreed. The Working Group will be made up of Divisional/Area/Local CWU Representatives, along with local and Geographic based Managers.

The role of the CWU representatives within these processes is fully recognised, as is the requirement for appropriate release in order for them to meaningfully prepare, participate and obtain the views of their members. It is agreed that in line with the IR Framework, CWU reps undertaking this work will not suffer financial loss. To this end it is agreed that local managers will facilitate this release and that all reasonable requests for release will be agreed.

Management and CWU reps will agree locally, on a weekly basis the period of the release required.

The use of Telemetry Tools to Support Area Distribution Revisions

Based on the experience of National Logistics (Network) and consistent with the PDA, it is jointly agreed that the Telemetry Tool to support Area Distribution Revision activity is Paragon.

Paragon is a software application designed to improve the efficiency of vehicle scheduling; it is already used in Royal Mail Group and it is jointly agreed that it will now be used to improve the scheduling of MGV vehicles within Area Distribution, in line with the terms of Appendix 3 of the Professional Drivers Agreement.

Paragon is considered to be a revision aid and not a total solution. Against that backdrop it is agreed that it will be used to assist MGV duty revisions as necessary in conjunction with local knowledge and expertise, across the Area Distribution function.

It is agreed that prior to the use of Paragon being used for Area Distribution Revisions full training will be provided for Divisional/Area/local CWU Representatives to ensure their professional usage.

It is recognised that Royal Mail may in the future propose the use of an alternative or new telemetry/route planning tools, other than Paragon. It is agreed that prior to their use, negotiation/consultation will take place with the CWU at a National level. This will take into account the scope, capabilities and suitability of any proposed alternative Telemetry tool, to ensure that they are applied in a manner consistent with the spirit, intent and terms of this agreement.

Revision Principles

The scope for all Area Distribution revisions will be each Mail Centre/Hub catchment Area; however it is recognised that there will be occasions where it will be in the interest of all parties to extend the scope of the catchment area to include adjacent areas. Any such rationale and proposals will be the subject of discussion and agreement as part of the ADWG.
 
Both parties remain fully committed to the full terms of the PDA and will develop a plan to ensure consistent application is rolled out across all Areas.   
 
Revision activity will concentrate on maximising the driving content of MGV driver duties, while prioritising full-time duties consistent with the PDA agreement (not precluding the use of OPG driving and non driving content to achieve this).  
 
The make-up and membership of the ADWG will reflect the in-scope area and ensure that all affected sites are fully represented.

The following is also re-affirmed:

MGV Professional Driver roles may be performed on a fixed or within a rotation of tachograph duties or non tachograph duties, as well as hybrid arrangements including platform, warehouse or delivery duties (where this is consistent with the General Driving Revision section of this joint Statement).

Duty arrangements are designed taking into account workload and efficiency whilst supporting additional employee earnings opportunities, SAs etc and will provide attractive attendance patterns which enable reasonable work/life balance.

Sufficient established MGV Reserves are available to cover annual leave, sickness and absence.

Area Distribution Revision Process

The Process will be conducted over 3 stages.

Stage One:

Area CWU Reps and local managers will jointly collate and sign off a site specific pack of current state data at each Area Mail Centre/Hub. This activity will provide a robust baseline as a reference to assist the Paragon planning process. The scope and details of the data to be gathered will be agreed with the NADWG.

Simultaneously, a non binding preference exercise to be run for all MGV Drivers in each Mail Centre/Hub.




Stage Two:

The ADWG will undertake an analysis of the ‘first cut’ Paragon outputs; identify any high impact or problem area. At this stage the Group will look to aid the development of local/Area solutions. This will not exclude a re run of elements of Paragon. Likewise, any potential solutions may not necessarily be restricted by individual unit or Area boundaries, where both parties agree to explore beyond the scope of the catchment area for the Revision. Widening the scope of the Revision will be consistent with the spirit and intent of this agreement.

It is agreed that the targeted deployment dates for Revisions, will allow sufficient time for Area/local negotiations and duty selection process to be concluded prior to deployment.

Stage Three:

Area/local negotiations will commence in line with the IR Framework. The ADWG will support this process and be available to help conclude Area solutions. A traffic light process will be deployed to monitor progress and identify at the earliest opportunity potential problems.

Review:

To support ongoing Area Distribution Revision activity, the NADWG will review the effectiveness of the 3 Stage process and assess opportunities to refine the approach for future revision activity. The methodology for this piece of work will be based on the ACAS guide to problem solving and will allow relevant expertise to be used where the NADWG agree it would be beneficial. Any revised process will then become the agreed approach to Area Distribution revisions going forward.

Where there is a concern regarding the interpretation and/or application of this agreement then issues should be referred to the NADWG for assistance.

Development & Training

Both parties recognise the benefits of well trained and motivated Professional Drivers.

Individual development and training goes hand in hand with being professional and both parties re-commit to the career path opportunities of Royal Mail employees. Against that backdrop it is agreed that that we will re-invigorate the ‘Professional Driver Training/Performance’ section of the PDA, so that individuals have the potential to progress to MGV & LGV in line with the National Logistics resourcing principles where opportunities exist to do so.

This commitment is consistent with our joint aspiration to provide rewarding employment, better long terms prospects, employment security and to reduce to an absolute minimum the use of external resource.

The NADWG will by the end of July 2012 have developed for Area roll out an agreed approach to how aspects, such as 121’s, end of day briefs, WTL&L and 4 monthly meetings will be introduced.

Driver Coaches

Driver Coaches have been deployed in Network Logistics for some time and the role has evolved through learning. Talks have now been concluded with regard to further enhancement of the role of Driver Coaches in Network and their introduction in Area Logistics including the delivery of Driver CPC training. Clearly the operational model differs between Network and Area Distribution and as such the aim of the NADWG will be to assess and conclude an optimum model in regard to the number and placement of Driver Coaches in Area’s to maximise the operational and commercial benefits.

Minor Repairs

Clearly current commitments, as set out in the Professional Drivers Agreement, in this regard are only appropriate to ‘Professional Drivers’ and in this case Area Distribution MGV Drivers. Further discussions will confirm no later than end July 2012, an agreed list of appropriate minor repairs for MGV vehicles and these will be deployed in line with the terms of the Network Minor Repairs agreement.

Any questions of interpretation, implementation or application of this agreement shall be referred to the signatories of this agreement for resolution.









Tony Fox Terry Pullinger
Director Logistics Assistant Secretary
Royal Mail CWU


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