Pension Update

[clashcityrocker]

Posted already in the Pensions Forum, but posted here as well for maximum traffic

COMMUNICATION WORKERS UNION



Circulated to the Postal DOCUMENT ‘LATE’
Executive on 9th April 2013 PE No: 79/13

For consideration at the
Postal Executive Meeting
to be held on 9th April 2013


Pension Update

The purpose of this document is to update the Postal Executive on further pension developments.

Since the last PEC update there has been two further meetings on the subject matter.

The first meeting took place on Tuesday 26th March and for the first time included representatives from the Royal Mail Group and Post Office Ltd at the same meeting. The Union was represented by the DGS (P), Ray Ellis and Andy Furey. The involvement of Post Office Ltd was an interesting development and it became clear during the discussion that whilst POL were supporting the same pension changes, they claim they are not in a position to offer the 5 year guarantee that is included in the Royal Mail Group proposal. We will elaborate on this aspect during the meeting. At the request of the company we agreed that ACAS could also be present at this meeting. The outcome was that the positions of both parties remained the same. At the conclusion of the meeting we left with the company explaining that they now had to trigger the legal consultation and that a communication would be arriving with members over the Easter weekend. A copy of this communication was shared with the Union. For our part the Union left the meeting reaffirming the policy of the Postal Executive as set out in the correspondence previously sent to both the Company and the Trustee Board.

The following day, as we were in the process of updating the PEC by email and preparing an LTB, we were contacted by Jon Millidge saying the company had reflected on the situation and wanted to hold a further meeting with this being attended by the Representatives of the Trustee Board and that all communications had been put on hold.

The second meeting took place on Thursday 4th April and on this occasion the Union was also represented by our professional Advisor Hilary Salt. There was a robust exchange of views on all aspects of the pension situation and although no real progress was made the CWU team felt that we made some telling points particularly on the assumptions being used for the valuation, the investment strategy and the whole question of affordability. We will elaborate on this meeting when the document is moved and it is important that the Postal Executive fully understand the dynamics of this 3 way discussion.




The following day the DGS (P) had a telephone conversation with Jon Millidge and again the company explained that they were holding off on the legal consultation to allow for further discussions with the direct involvement of Moya Greene. It was also said that it is now unlikely the company will trigger the legal consultation this side of our Annual Conference.

The final development to report is a meeting that took place yesterday with the Minister, Michael Fallon, to discuss all the issues arising from the Postal Services Act. At this meeting the Government indicated that whilst they believe that there is no linkage to the previous Government pension settlement and that this is a matter that needs to be resolved between the company and the Union, they would be prepared to discuss the matter further following the next round of talks with the Company.

There is no doubt that the position the Union has adopted is making it difficult for the Company to move forward with their proposal and it does seem there are likely to be some further twists and turns before they trigger the legal consultation. However, the Union must now work on the basis that the company will ultimately move to the next stage. In response we are preparing suitable communications that will explain what has happened, the Unions position and how in our view this is also linked to the potential privatisation of the industry. At some stage in the near future we will need to get our Representatives together and explain the overall position. In the event the company do trigger the legal consultation we should prepare for such a forum shortly after Conference and if required put this in place as part of an Emergency Motion to this years Annual Conference. The thinking behind this position will be explained in moving the document.






Dave Ward Ray Ellis
Deputy General Secretary (P) Assistant Secretary


RECOMMENDATION 1: That the actions of the Officers be endorsed.

RECOMMENDATION 2: That suitable communications are prepared.

RECOMMENDATION 3: That provisional planning takes place for a CWU Forum in the event that both the Royal Mail Group and Post Office Ltd trigger the legal consultation.

[Glenno]

Pretty much what Dingo has already stated, but it is good to get all the info & facts, cheers clash

[Poshpost]

What, I wonder, is the "5 year guarantee that is included in the Royal Mail Group proposal." Post Office Ltd can't offer the same "guarantee" and yet they want all the other pension changes that Royal Mail Group are "proposing".

[POSTMAN]

What, I wonder, is the "5 year guarantee that is included in the Royal Mail Group proposal." Post Office Ltd can't offer the same "guarantee" and yet they want all the other pension changes that Royal Mail Group are "proposing".

the 5 year guarantee is that the link to final salary will cease in 5 years time whereas in pol and Parcelforce it will cease straight away.

From the other thread in the pension forum.