Business minister urges RM workers to accept pay deal

[TrueBlueTerrier]

Business minister urges Royal Mail workers to accept pay deal

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Business minister Michael Fallon has urged postal workers to accept Royal Mail’s 8.6pc wage offer, comparing their deal to the cap imposed on nurses, teachers and members of the armed forces.

Mr Fallon said that the offer, which was rejected earlier this week by the Communication Workers Union, who are threatening industrial action, “looks pretty reasonable”.

He believed the two sides could reach a deal and urged them to do it as soon as possible so the Government can float the postal operator.

Mr Fallon told The Daily Telegraph: “Pay is a matter for management and the unions to sort out, but 8.6 per cent over three years? It looks pretty reasonable compared to the 1 per cent a year cap for nurses, teachers and armed forces.”

“I hope peace will break out and we can get on preparing this business for the future.

“We have begun to see signs of how successful this business can be, and other EU countries are looking at similar privatisations. I hope they can sort it out and I hope they can sort it out soon.

“The Royal Mail needs private capital in 13/14 (2013-14 financial year). An IPO is the preferred option but if that’s not possible then it will be a private sale.”

Mr Fallon added that he wanted staff to have shares in Royal Mail and the unions had been asked for their views on a final version of the scheme, which could see postal workers handed £2,000 of shares.

He said: “We are looking at the options [for an employee share scheme] and I’ve asked the union for a final version, but I want as many of their members as possible to have a real stake, one that will build and grow.”

Details of the 8.6pc pay offer to 125,000 staff were made public by the Royal Mail on Monday, infuriating union leaders.

The package is made up of a 2.6 pc pay rise this year, backdated to April, plus a £300 guaranteed bonus. This would be followed by a 3 pc rise next year and 2.8 pc the year after. In total, postal workers would take home £25 a week more by 2016.

Unions dismissed the offer out of hand, claiming it was a “sweetener” to accept radical changes to pensions and working conditions, including a possible no-strike deal.

Government officials are desperate for a deal between the two sides to be struck so the privatisation plans can proceed. Sources claim a three-year deal would give staff certainty about terms and conditions as part of a private company, while also giving potential investors peace of mind about industrial unrest.

Royal Mail insiders claim the CWU is being far more conciliatory in private, with union officials writing in a memo that they were “committed to further negotiations”.

Mr Fallon said he had also asked the union for its views on his vision of Royal Mail workers getting a stake in the business as part of the privatisation.

It is thought the Government may set aside as much as 10 per cent for staff, though no decision has been made whether workers will be given the shares or simply the chance to buy them.

[fishtank]

“Pay is a matter for management and the unions to sort out, but 8.6 per cent over three years? It looks pretty reasonable compared to the 1 per cent a year cap for nurses, teachers and armed forces....although granted it's f**k all compared to the £10,000 pay rise i'm getting this year....that reminds me am I getting paid for this? because I can give you one of my “expenses” forms and you can just stick lunch on the taxpayer's tab”.

Can we have a f**k off Fallon smiley?

[cloherty1976]

I think you should stand for mp fish tank as then you would be happy with pay rise?

[fishtank]

I think you should stand for mp fish tank as then you would be happy with pay rise?

I only make half of what you do so the pay rise only looks half as good to me.
I wonder how much Stobart pays...
Doubt it's as much as £40k.

[cloherty1976]

I only make half of what you do so the pay rise only looks half as good to me.
I wonder how much Stobart pays...
Doubt it's as much as £40k.

Stobart pays about 34k plus bonuses but then how much do TNT pay there delivery staff..

[k979aaa]

MPs are in for a 15% payrise I say to Fallon NO we will not settle for less and will fight privatisation and pensions as well as workplace issues and the unfair competition problems all these issues are linked nothing can separate them.

[DB1100]

Stobart pays about 34k plus bonuses but then how much do TNT pay there delivery staff..

With Stobart you won't be doing just 1 run,you will be working your full hours,not parked up in laybys reading w-nk mags.

[cloherty1976]

With Stobart you won't be doing just 1 run,you will be working your full hours,not parked up in laybys reading w-nk mags.

[those days have gone and duties are a lot tighter with alot of six day weeks and weekend work. But that is life today..]

[TrueBlueTerrier]

I think you should stand for mp fish tank as then you would be happy with pay rise?

Still ignoring the Faustian chains cloherty, the basic offer is reasonable and on its own I would probably accept it. Only those who can see the ££££ and not the damage the extra bits will think this is a good overall package.

Its also weird that the MPs most basic argument is that you can't attract the right talent at the current pay level well there are 2 things I would like to say:

1. Why can't the same argument be used for Postal Workers, Nurses, Service personnel and yes even drivers.
2. I agree the current level of pay doesn't attract the right talent, it attracts only professional politicians, not conviction ones. Increasing their pay will only exacerbate this.

[cloherty1976]

The pounds are not the only thing for me as I would rather they give me a bigger slice of shares rather than the £300 and if everyone done this the posties could own 12% instead of 10% of company which if put together would give you a say on how the company is run.. Just an idea

[UnhappyGremlin]

As per usual, media and Fallon highlight the only good bit of the deal, being the 8.6% pay rise, and then call us greedy and unreasonable for refusing the offer.

If it was just the pay rise with no strings, we'd all grab it with both hands as it would be an excellent deal in these economic times.

But it's all the extra crap that is the real issue here. The fact they want to screw my pension for the second time in what, 5 years? When we all know that MP's pensions are guaranteed and pure gold, and funded by the taxpayer, yes we could all call others greedy and compare them to nurses. Why not compare us to MP's? Because by that comparison we definitely have a bad deal don't we?

It is the fact that this will not be the last time they come calling for my pension, and everyone else's, that is the one of the biggest sticking points of this deal.

IT IS NOT JUST ABOUT THE MONEY.

He also let slip the other main reason for begging us to accept this deal, namely being that if there are prolonged talks and possibly IA, it makes privatisation harder and maybe a chance of defeating it.

So far, every reason to reject the deal, and none to persuade me to shaft myself out of my pension and a decent retirement.

Fallon is an idiot.

[janitor]

Tell him you will except it if they scrap the parliamentary pension, after all we are all in this together,and in these austere times these gold plated pensions are not sustainable.