Well, well why managers agreed to pension change!

Post by **stephen500** » 05 Oct 2007, 12:39

''The agreement of Royal Mail managers has been achieved partly because of a promise from the company that managers' bonuses, typically amounting to between 5% and 9% of salaries each year, will become pensionable under the new arrangements. ''
http://news.bbc.co.uk/1/hi/business/7029472.stm
Royal Mail to shut pension scheme

The pension changes may come into effect next year
The Royal Mail has proposed the closure of its final salary pension scheme to all members.
The company is offering new and existing staff a new scheme from 2008 linked to "career average" earnings.

It also plans to raise the standard retirement age from 60 to 65, but only for pension earned after 1 April 2010.

The Royal Mail is in the throes of a strike by most of its other staff over pay, pensions and jobs, but managers have now agreed a deal on these issues.

"We will support it [the pension changes], rather than fight it," said Paul Reuter, national officer for the trade union Unite which represents Royal Mail managerial staff.

"It is the right thing to do given the state of the business. There will still be a link with earnings in the future," he said.

Unite had threatened to ballot its 12,000 Royal Mail members for strike action unless a satisfactory deal was struck, particularly over the pensions issue.

However, the Communications Workers' Union (CWU) said it would oppose the changes.

"We are definitely in opposition to the closure of the scheme," she said.

Agreement

The union's agreement with the Royal Mail was achieved after talks with the company last night.

The Royal Mail first suggested closing the pension scheme, but to new joiners only, earlier this year.

The scheme has a huge deficit of Â£6.5bn, partly because the company belatedly increased its estimate of how long its staff would live after retirement.

It has already agreed to pay off this deficit over the next 17 years.

However, the normal cost of funding its pension scheme, which covers more than 160,000 staff, has risen in recent years from 12.4% of staff salaries to about 20%.

The proposed changes are designed to bring down this cost to the company.

Consultation

The agreement of Royal Mail managers has been achieved partly because of a promise from the company that managers' bonuses, typically amounting to between 5% and 9% of salaries each year, will become pensionable under the new arrangements.

Mr Reuter said the same overall pension deal was also on offer to members of the Communications Workers Union (CWU), who are in the middle of rolling strike action at sorting offices across the UK.

"We are still in talks today and pensions form a large part of this," said the CWU spokeswoman.

Royal Mail is expected soon to start a formal 60-day consultation with its staff, a legal requirement, before the changes can be brought in.

"We are pleased to have reached agreement in principle with Unite," said a Royal Mail spokesman.

"As we have always made clear, proposals on pensions reform across the group will be fully consulted on. This consultation has yet to begin."

Post by **stephen500** » 05 Oct 2007, 12:43

http://business.timesonline.co.uk/tol/b ... 594549.ece
''The retirement age is to be increased by five years to 65 but the final-salary pension scheme will remain in place for existing employees. '' [article about managers acceptance]
Royal Mail delivers pay deal for managers
As a strike by postal workers rages on, Royal Mail announces an agreement with senior staff over pay and pension reformsSteve Hawkes
The Royal Mail revealed a key pay deal with more than 12,000 of its managers today but admitted that there was still no sign of an agreement with postal workers over a strike that has crippled deliveries across the UK.

It said that managers had agreed to a package of pay, modernisation and pension reforms that will see them pocket a 2.5 per cent wage rise backdated to April.

The retirement age is to be increased by five years to 65 but the final-salary pension scheme will remain in place for existing employees.

The move eliminates the threat of a second front to a strike that could leave the UK without a postal service until the middle of next week.

Related Links
Royal Mail walk-out leaves post in chaos
Royal Mail Strike Q&A
Royal Mail set to close final-salary pensions
Thousands of postal workers began a 48-hour walkout at noon yesterday and a second two-day stoppage is scheduled to begin on Monday.

The postal workers are represented by the Communications Workers Union (CWU), which is furious over planned reforms to working practices for its members.

It claims that 40,000 postal staff could lose their jobs as a result of changes to working patterns.

A Royal Mail spokesman acknowledged today: â€œWe expect there to be severe disruption to the postal service.â€

BELIAL · Post by **BELIAL** » 05 Oct 2007, 12:48

Ha HA what a bunch of idiots, you only ever fight on one front if possible. Just you watch those bonuses vanish as targets are raised.
And when they ballot about it they will be on their own ,and when they get laid off there will be no MTSF

nelson · Post by **nelson** » 05 Oct 2007, 12:52

''The agreement of Royal Mail managers has been achieved partly because of a promise from the company that managers' bonuses, typically amounting to between 5% and 9% of salaries each year, will become pensionable under the new arrangements

They would not even include our early shift allowance

Spartacus · Post by **Spartacus** » 05 Oct 2007, 13:01

F*ck 'em, I wouldn't want solidarity with that bunch of spineless bast*rds anyway.

Post by **rhino49** » 05 Oct 2007, 13:02

I would be delighted if my last bonus increase, which I recall was about 92 pence, was linked to my pension to offset losses - I am sure that will settle all my worries and make me return to work tomorrow - what a load of bollox - it shows how stupid our managers are - they have accepted a promissory note from a morally bankrupt organisation.

DGP1 · Post by **DGP1** » 05 Oct 2007, 13:03

Paul Reuter, Unite national officer, said: "Unite has secured a deal with Royal Mail which we believe will protect Â£1.5 billion worth of pension benefits for Royal Mail staff.

"We now have a pensions package that we can take to our

delivery rounds

borderscot · Post by **borderscot** » 05 Oct 2007, 13:04

Why is this suprising since when has anyone in the CMA ever had a backbone, they are of the opinion that they are needed, :cfo

Post by **POSTMAN** » 05 Oct 2007, 13:06

stephen500 wrote:http://business.timesonline.co.uk/tol/b ... 594549.ece
That managers will still have final salary scheme for existing members.
This must been seen in the context of it being an article for the managers agreement.
Whether the Times has got it right i am not sure.
But if what they are saying is right then they will keep final salary for existing managers!

strangler · Post by **strangler** » 05 Oct 2007, 14:59

It was that magic word that swung it again for them...BONUS

Bloke7 · Post by **Bloke7** » 05 Oct 2007, 15:49

Use your car....help your manager make his bonus (pension)!!

T-MAN · Post by **T-MAN** » 05 Oct 2007, 16:03

It didn't surprise me 1 bit....ALL MANAGERS ARE USELESS-SPINELESS-SCABIEEEEEE-W*****S!

THE FIGHT CONTINUES!

:lfo :cfo

menorca · Post by **menorca** » 05 Oct 2007, 16:03

Another typically cowardly act from the cma, I would not want them involved in our fight, they would only stab us in the back

jack · Post by **jack** » 05 Oct 2007, 17:28

Gaffers won't mind working an extra 5 yrs anyway cos they do f**k all apart from - bully,harass,force overtime,and drink coffee,and gain huge bonuses under false pretences.

:lfo :cfo

Post by **dvbuk55** » 05 Oct 2007, 17:41

jack wrote:Gaffers won't mind working an extra 5 yrs anyway cos they do f**k all apart from - bully,harass,force overtime,and drink coffee,and gain huge bonuses under false pretences.

:lfo :cfo

Well their job is about to get easier because they won't have to harass and bully for overtime it will be annualised hours and 50 hour weeks without pay and because of the use of cars and lowering budgets they'll be in for a bigger bonus - see it's easier to cater for 12,000 employees who don't work than it is for 160, 000 employees who do.