Union rejects Royal Mail pay offer

[TrueBlueTerrier]

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The Communication Workers Union has rejected as “misleading and unacceptable” Royal Mail’s offer of an 8.6 per cent rise in basic pay over three years as the company attempts to achieve industrial peace ahead of privatisation.

The company’s staff will also get a minimum of 10 per cent of the shares by the time the state’s shareholding falls to zero, under government plans.

Privatisation of Royal Mail is expected to begin over the next few months, probably through a stock market flotation this autumn of a majority stake, or even the whole company.

Opposition from members of the Communication Workers Union is one of the remaining barriers. They recently voted by 96 per cent to oppose privatisation in a consultative ballot.

Royal Mail’s offer to the CWU includes an assurance that terms and conditions for existing and new employees in the core network will remain on the same basis for at least the three-year period. It also includes proposals for “industrial stability mechanisms”, thought to mean a no-strike clause.

Dave Ward, CWU’s deputy general secretary, said: “Postal workers want more security; what’s on offer is less. With privatisation looming, the protections Royal Mail have put on offer are not worth the paper they’re written on. Our members clearly voted – by a huge 99 per cent – for a pay rise without strings attached yet the company ignores them.”

The basic increase in year one, backdated to April, would be 2.6 per cent – close to the median 2.5 per cent at which pay settlements have been running across the economy, according to Incomes Data Services, the pay analyst. Rises in years two and three would be 3 per cent and 2.8 per cent respectively.

An additional £300 lump sum would be paid in December in offices where no industrial action has taken place. There would also be a minimum £100 annual bonus.

The offer includes keeping the Royal Mail pension plan open to existing members, subject to certain conditions, and a “new model” for Royal Mail and the CWU to work together. The CWU said it was unacceptable to link the offer to previously rejected pension proposals.
Further discussions will be held this week with the CWU about the proposed agreement.

Moya Greene, Royal Mail’s chief executive, said: “Co-operation is central to the future success of the company. This offer represents Royal Mail’s commitment to a long-term engagement strategy with the CWU and with our people.

“We have already built a stronger Royal Mail together through closer co-operation and trust in recent years. We are now offering a new long-term agreement with the CWU and our employees.”

Mr Ward said the pay rise was “a sweetener to swallow some very bitter pills on damaging changes to pensions and a raft of workplace uncertainty. If we can’t get the assurance we want over our members’ future then industrial conflict is inevitable.”

But in a letter to branches, Mr Ward said: “Although this offer has been rejected, it does demonstrate that the company now appear to be serious about resolving issues that have been on the union’s agenda for some time.”

[TrueBlueTerrier]

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The union that represents postal workers has rejected a proposed 8.6% pay increase from Royal Mail, amid privatisation plans.

Royal Mail has offered 125,000 workers the three-year pay rise, as well as bonuses and other changes to conditions.

But the Communication Workers Union (CWU) described the offer as "misleading and unacceptable".

The government is planning to sell the operator to the private sector.

Business Secretary Vince Cable has spoken of a possible share sale before the end of the year.

In its latest offer, Royal Mail said any pay deal made now "would not be affected by any change in ownership of the company".

'Sweetener'
It also said that it would ensure a minimum of 10% of shares would be set aside for employees ahead of any sale, and called for a "new model" of working with the CWU - the main union body.

"We have already built a stronger Royal Mail together, through closer cooperation and trust in recent years," said Moya Greene, Royal Mail chief executive.

"We are now offering a new long-term agreement with the CWU and our employees.

"This is a good deal - good for Royal Mail and good for our people. We are asking the CWU and our people to accept this new agreement.

But Dave Ward, CWU deputy general secretary, said the pay-rise on offer was merely "a sweetener".

"Postal workers want more security; what's on offer is less. With privatisation looming, the protections Royal Mail have put on offer are not worth the paper they're written on," he said.

"The pay rise is only there as a sweetener to swallow some very bitter pills on damaging changes to pensions, and a raft of workplace uncertainty.

"The deal that they've spun in their press release is not the real deal. Postal workers will know that."

He warned that industrial conflict was "inevitable" if the union did not receive assurances it wanted.

[TrueBlueTerrier]

Royal Mail Staff Reject Pay And Bonus Offer

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As the Government plans a Royal Mail flotation, a pay deal offer to staff is rejected amid fears of industrial action.3:48pm UK, Monday

Some 125,000 postal workers were offered annual bonuses

An offer by Royal Mail of a three-year pay deal to around 125,000 employees has been rejected, amid warnings of industrial conflict.

The company said the proposed deal would increase base rates by 8.6%, with a lump sum of £300 in December 2013 and new incentive arrangements including a minimum £100 bonus in future years.

The Royal Mail said it also wanted a "new model" for the company to work together with the Communication Workers Union (CWU).

A statement said terms and conditions in the proposed agreement would not be affected by any change in ownership of the company as the Government presses ahead with controversial plans to privatise the Royal Mail.

But the union rejected the proposal, branding it "misleading and unacceptable", saying workers had recently voted by 99% for a pay rise without any strings attached, which the company had "ignored."

Deputy general secretary Dave Ward said: "Postal workers want more security; what's on offer is less. With privatisation looming, the protections Royal Mail have put on offer are not worth the paper they're written on.

"Our members clearly voted - by a huge 99% - for a pay rise without strings attached, yet the company ignores them."

Mr Ward said the Government and Royal Mail chief executive Moya Greene had promised a year ago that postal workers' pensions were safe, adding: "Now they have reneged on their promise and postal workers' pensions are again under attack.

"For the company to present this as some kind of benefit linked to a pay offer is scandalous.

"This is daylight robbery of a further £2bn of pension scheme assets being used to subsidise privatisation.

"CWU is seeking a parliamentary inquiry and a review of the European state aid settlement.

"The pay rise is only there as a sweetener to swallow some very bitter pills on damaging changes to pensions, and a raft of workplace uncertainty.

"The deal that they've spun in their press release is not the real deal. Postal workers will know that."

"If we can't get the assurance we want over our members' future, then industrial conflict is inevitable."

Ms Greene said: "Co-operation is central to the future success of the company. This offer represents Royal Mail's commitment to a long-term engagement strategy with the CWU and with our people.

"We have already built a stronger Royal Mail together through closer co-operation and trust in recent years. We are now offering a new long-term agreement with the CWU and our employees.

"This is a good deal - good for Royal Mail and good for our people. We are asking the CWU and our people to accept this new agreement. There will be further discussions this week with the CWU about the proposed agreement."

[TrueBlueTerrier]

CWU rejects three-year Royal Mail pay offer

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LONDON (Reuters) - A British union rejected a three-year pay offer from Royal Mail on Monday, warning industrial action was inevitable if bosses did not meet its demands ahead of the post group's planned privatisation later this year.

The offer, which would apply to around 125,000 employees, included an 8.6 percent pay increase over three years and a lump sum payment of 300 pounds.

"The pay rise is only there as a sweetener to swallow some very bitter pills on damaging changes to pensions, and a raft of workplace uncertainty," said Dave Ward, the deputy general secretary of the Communication Workers Union (CWU).

"If we can't get the assurance we want over our members' future then industrial conflict is inevitable."

An initial public share offer (IPO) of Royal Mail, which could value the near 500-year old business at between 2 billion and 3 billion pounds, is expected later this year and banks have been appointed to run the flotation.

The CWU has opposed privatisation, saying it would lead to a worse deal for customers and staff. It is particularly aggrieved by uncertainty around changes to the company pension plan.

In June, CWU members voted 92 percent in favour of boycotting the delivery of competitors' privately sorted mail, though it later accepted legal advice to back down.

Royal Mail Group Chief Executive Moya Greene said there would be further discussions this week with the CWU.

"Cooperation is central to the future success of the company," she said on Monday. "This offer represents Royal Mail's commitment to a long-term engagement strategy with the CWU and with our people."

The company said unless it got a collective agreement with the CWU, the pay increases would not be introduced.

The previous pay award, agreed in March 2010, was a 6.9 percent basic pay increase over three years plus lump sum payments totalling 1,000 pounds linked to a modernisation programme.

[PostieSP1]

Oh Great the Public will read that as we turned down 8.6% nothing else!Royal Mail and it's Press allies are so much cleverer than the CWU

[k979aaa]

Oh Great the Public will read that as we turned down 8.6% nothing else!Royal Mail and it's Press allies are so much cleverer than the CWU

8.6% the reality is 2.6% a £300 bung and you can whistle dixy for the rest sold down the river without a paddle.

[midegarelu]

The basic increase in year one, backdated to April, would be 2.6 per cent – close to the median 2.5 per cent at which pay settlements have been running across the economy, according to Incomes Data Services, the pay analyst. Rises in years two and three would be 3 per cent and 2.8 per cent respectively.

When I went to school, we did old fashioned adding up without a calculator 2.6 + 3 + 2.8 = 8.4

[nataddick]

Did they not teach compound interest at your school ?

£100 after year 1 at 2.6% = £102.60
£102.60 after year 2 at 3% = £105.68
£105.68 after year 3 at 2.8% = £108.63

So your £100 has grown by £8.63 or 8.6%

[Delbhoy]

Oh Great the Public will read that as we turned down 8.6% nothing else!Royal Mail and it's Press allies are so much cleverer than the CWU

Totally agree that's all the public will see is the figure 8.6%. It's time the cwu used the media to put there side forward. Because they will use it to destroy us.

[El-Bandito]

Did they not teach compound interest at your school ?

£100 after year 1 at 2.6% = £102.60
£102.60 after year 2 at 3% = £105.68
£105.68 after year 3 at 2.8% = £108.63

So your £100 has grown by £8.63 or 8.6%

Nataddick your wasted working for RM you should become an investment banker, then this country wouldn't be in the mess it's in. Better still become a planner for P&L at least your mathematics are correct.