Quadrant Pay Claim 2010

[POSTMAN]

No: 594/10
Ref: 301
Date: 6th July 2010


To:
All Branch Secretaries with Quadrant Members
Area Quadrant Representatives
Divisional Representatives
Regional Organisers


Dear Colleague

Quadrant Pay Claim 2010

Branches will recall LTB 516/10 had attached a copy of a joint statement that had been agreed with the business with regard to the ongoing negotiations between the Union and Quadrant in relation to the pay and reward negotiations that were continuing between both sides.

The department is pleased to report that following what had been extensive and difficult talks in the current climate, an agreement has now been reached with the business.

In order to provide you with the relevant information in regard to the pay agreement and to assist with any member’s queries you may receive, we have attached along with the agreement which was ratified by the Postal Executive on 6th July 2010, a document you may wish to use as a brief. Branches will note that the agreement is for an 18 month period and that the key elements of the agreement are as follows:

1.An increase of 2% on all elements of pay, including overtime, all allowances and pay ranges, etc back dated to 1st April 2010.

2.A further increase of 1.9% on all elements of pay, including overtime, all allowances and pay ranges from 1st October 2010.

3.The payment of allowances on sick leave will be increased from 4 weeks to 8 weeks.

4.An increase in paternity leave will be increased from 2 weeks full pay to 4 weeks full pay.

5.The introduction of a new productivity scheme, which is fair and enables all employees to share in the success.

6.A new agreement, for dealing with the impact of severe weather (acts of god) and acts of terrorism on our members and their ability to attend work.





The agreement will be subject to an individual member’s ballot and branches will be informed of the details for the ballot when arrangements have been discussed and finalised with the SDGS Department. This will be done as soon as is practical.

In the meantime, branches are requested to ensure that our Representatives and Members are made aware of this correspondence.

Any enquiries relating to this matter should be addressed to Terry Pullinger, Assistant Secretary, email dwyatt@cwu.org, quoting reference No. 301.

Yours sincerely




Terry Pullinger
Assistant Secretary
COMMUNICATION WORKERS UNION


AGREEMENT INTRODUCTION/BRIEF


QUADRANT PAY CLAIM 2010

The department submitted its claim to the business on 17th March 2010 (PEC Doc 20/2010) and anticipated that it would be a difficult year. However, events that have transpired since have clearly made this an exceptionally difficult year in which to try and negotiate pay awards.

At the time of submitting our claim we pointed out to Quadrant that despite the changes ripping through Royal Mail, Quadrant remains a profitable business and it is appropriate that the efforts of our members should be recognised and rewarded. Turning to the economy at the time of submitting our claim RPI was 3.7% and since then it has risen to 5.3% but it is forecast to drop again. The most recent monthly forecasts published in June show inflation is expected to fall over the remainder of the year to 3.8 per cent in December.

Management’s response was to remind us that the country was experiencing its deepest recession for many years and that the economic outlook was very difficult. They also made the point that Quadrant was seeing a fall in its revenues both from Royal Mail and from what they receive from sales. Quadrant also stated that their objective in the discussions was not to increase its cost base.

So the negotiating environment was determined by the above and I believe that it is fair to say that the negotiating teams were alive to the difficulties that the business and its employees face and were determined to negotiate an agreement that respected both business and employee needs.

Against that backdrop we are pleased and happy to recommend the attached agreement.

In respect of Conference policy the delay in these negotiations allowed us the opportunity to also factor in the most up to date polices;

‘This conference agrees that the current Quadrant productivity bonus is now failing to deliver the kind of financial rewards which was expected on its introduction, therefore conference agrees that an immediate review of the scheme must take place’


This conference instructs the incoming postal executive to seek an agreement on Quadrant pay on the following lines-

1/ Obtain the maximum pay increase possible.
2/ Increase in London weighting payment.
3/ Any pay increase shall flow through to all overtime and allowances.
4/ Reduction in the working week to 35 net working hours.
5/ All increases to be fully pensionable.
6/ Increase in full paid maternity leave from 40 weeks to 52 weeks.
7/ Continue to progress policy on child care, carers and family friendly provisions as part of the pay agreement.
8/ The introduction of a healthcare package for Quadrant members.

This list is not exhaustive.

If negotiations are not completed by the 1st of July 2011 the Postal Executive shall consider implementing a ballot of the membership under National Rule 13.’


‘Conference agrees that Britain has experienced an increase in extreme weather conditions in the past year this has led to some of our Quadrant members being unable to attend work safely.

Whilst Quadrant operates a Severe weather policy to deal with these circumstances, conference agrees this is not in the best interests of our members, therefore the Postal Executive is instructed to seek an agreement with Quadrant on a joint policy going forward to deal with such circumstances in the future.’


I believe that the members will consider that we have made real progress on many of these polices and that despite the fact that this is an 18 month deal when considered over the period of April 2009 to October 2011, our achievements stand up to any in the labour movement.
THE AGREEMENT

The agreement is for an 18 month period and the key highlights are;

An increase of 2% on all elements of pay including overtime, all allowances and pay ranges etc backdated to the 1st April 2010.

A further increase of 1.9% on all elements of pay including overtime, all allowances and pay ranges from the 1st of October 2010.

The payment of allowances on sick leave will be increased from 4 weeks to 8 weeks.

An increase in paternity leave pay will be increased from 2 weeks full pay to 4 weeks.

The introduction of a new productivity scheme which is fair and enables all employees to share in the success (annex A).

A new agreement for dealing with the impact of severe weather (acts of god) and acts of terrorism on our members and their ability to attend work.


NEW PRODUCTIVITY ARRANGEMENTS

In respect of the new productivity scheme we have been trying to revise it for a number of years. The current scheme makes it near impossible for any of a members working in a single person situation to earn any bonus. Given the transformation in Royal Mail and the likelihood of a number of large sites closing it makes it the ideal time to introduce a new scheme.

The new scheme is based on some key principles which will enable us to shape it as it evolves;

Everybody contributing to the collective success of the company and everyone enjoying a share of the reward.

A commitment that the scheme must be meaningful, achievable and offer genuine opportunity for reward.

Payments made in June and December to coincide with members holidays and Christmas.

Core payment of £25 for June and December payments, guaranteed.

CWU involved in the setting of the productivity targets.


Audit in the performance to calculate payments based on an open book accounting approach with CWU involvement.

Had this scheme been in place last year it would have generated a bonus pot of £306K as opposed to the 207K that was generated by the current scheme. It would also have paid out £235 per person against the average of £159 that was paid out.

CONCLUSION

In considering the acceptability of this agreement I do believe that given the current environment it is worth recalling what was also achieved in 2009;

2% increase in basic pay and allowances.
Allowances paid for the 1st month while on sick leave/pay.
Full paid maternity leave to be increased from 39 to 40 weeks.

Taking the 2009 agreed award and that recommended for 2010 we would have achieved over a two and half year period 5.9% increase in all elements of pay, industry leading maternity and paternity leave at 40 & 4 weeks respectively, the payment of allowances on sick from nothing to 8 weeks, a mature acceptance of dealing with serious circumstances that stop our members attending work and addressed at last the divisive and inflexible productivity arrangements.



Terry Pullinger
Assistant Secretary

AGREEMENT BETWEEN THE CWU AND QUADRANT CATERING LTD - PAY REVIEW 2010


INTRODUCTION

This agreement has been developed between Quadrant Catering Ltd and the CWU as a rounded approach to each organisation’s objectives and against the backdrop of the recognised difficult challenges facing Quadrant, balanced with the need to retain motivated and rewarded CWU represented grades.

SCOPE

The agreement covers all CWU represented grades for the 2010 pay award.

THE AGREED PAY AWARD

The structure of the agreement represents a package of improvements to terms and conditions over an eighteen month period, with the next pay/improved terms and conditions award being due on the 1st October 2011. It is agreed that negotiations will commence well in advance of that date to ensure that agreement is reached consistent with those timescales.

This agreement has been reached in recognition of the challenges faced by Quadrant and its employees both operationally and commercially as it responds to the effects of Royal Mail’s transformation deployment.

Both parties recognise that the need for effective industrial relations is critical, as adversarial relationships damage the interests of both the company and employees. Against that backdrop it is important to recognise what can and what cannot be influenced by Quadrant.

Quadrant is an internal provider to Royal Mail, it plays no part in the decision making process in regard to site closures be they Mail Centres, RDC’s or Delivery Offices etc. Equally, in respect to the retention of facilities in remaining sites the process is that as detailed in the current ‘Programme of Reviews of Catering Services Agreement’ signed between Royal Mail and the CWU in 2007.

Quadrant fully recognise however that they are responsible for dealing with the peoples issues affecting Quadrant employees and the need to constantly review the product offering to attract custom. Against that backdrop Quadrant commit to continue to work with the CWU to develop product offering strategies and explore every opportunity to meet the preferences of its employees through change. Quadrant also agrees that the resolution of people’s issues will be a joint strategic
priority and will include job and career opportunities being provided to individuals, on a voluntary basis, in the wider Compass organisation. Equally Quadrant agrees that they will provide catering services wherever they are ask to do so by Royal Mail.

REWARD PACKAGE IMPROVEMENTS & NEW ARRANGEMENTS

An increase of 2% on all elements of pay including overtime, all allowances and pay ranges etc backdated to the 1st April 2010.

A further increase of 1.9% on all elements of pay including overtime, all allowances and pay ranges from the 1st October 2010.

The payment of allowances on sick leave will be increased from 4 weeks to 8 weeks.

Paternity leave pay will be increased from 2 weeks full pay to 4 weeks.

The introduction of a new productivity scheme which is fair and enables all employees to share in success (Annex A).


Severe Weather, Acts of Terrorism & Disruption to Public Transport Policy

Quadrant recognises that in recent years employees may have faced difficulties attending their place of work during periods of severe weather conditions (acts of god) and acts of terrorism.

Against that backdrop it is agreed that individuals will be entitled to a maximum of 3 days exceptional leave on full pay when such circumstances occur. Time required in excess of this will be dealt with using either holiday allowance, unpaid leave of making up the time.

Whilst the Company is committed to protecting the health and safety of all its employees, it must ensure that disruption to the service we provide to customers and client’s remains minimal. Each case will be dealt with on its own merit and individuals will be expected to make every effort to attend work.

This policy applies to all employees covered under the recognised agreement with the CWU.
Reasonable efforts to attend work

Employees should use their best endeavours to attend work in all circumstances. However, it is not the Company's intention that colleagues put themselves at unnecessary risk when trying to attend work. Colleagues should use their own judgment and, if unable to attend work, contact their line manager immediately.

The Company will decide whether the policy applies and inform the management team accordingly. It is agreed that individuals will be dealt with sensitivity and tact especially given the circumstances and where the case, via national & local news/emergency services reports, is self evident then the individual will be immediately reassured that the day(s) required will be granted inline with the above.

Health and safety

Whilst the Company will ensure, so far as is reasonably practicable, the health, safety and welfare at work of all its employees, colleagues are reminded of their duty to take reasonable care for their own health and safety and that of other persons who may be affected by their acts or omissions. This includes taking extra care when travelling to and from work in severe weather conditions and acts of terrorism.

CONCLUSION

Both Quadrant and the CWU have seen the benefits in the past year of the commitment made in the 2009 agreement to hold themselves to higher standards in regard to the touchstones that mark complete success and a modern adult to adult relationship process.

This agreement is seen as a further step in the joint desire to safeguard the future of Quadrant, provide employment security and employee confidence and also the continuation of the creation of a working environment that can deliver outstanding results by taking people with us, within a framework of shared values, goals and purpose.









Steve Buesden Terry Pullinger
Quadrant Managing Director CWU Assistant Secretary

Annex A

Agreement between Quadrant and the CWU on the revised Productivity Bonus scheme for CWU represented employees.

Positioning:
It is recognised that the scheme needs to move forward to reflect the changing environment in which the company now finds itself. This revised scheme represents a new approach based on the concept of all CWU represented staff contributing to the collective success of the company and all enjoying a share of the reward.

Against that backdrop both Quadrant and the CWU are committed to providing a scheme that relates to customer service and efficiency and builds upon the current excellent performance of the Quadrant employees. The scheme needs to be meaningful, achievable, and should offer genuine opportunities and incentives to improve the company’s performance and to share in that success.

1. Objectives

To provide a company based self-financing method of rewarding Quadrant employees for achieving improved efficiency above target and for delivering excellent customer service.

To provide additional motivation for employees to assist in the achievement of financial and customer service targets, plus recognition and reward for employees for improvements in Quadrants sales, efficiency and customer service standards.

2. Grades Covered

The Quadrant Productivity Bonus Scheme applies to all Quadrant employees, except casual and agency staff, in C.W.U represented grades.

3. Payment

The scheme will run from the start of the financial year: 1 Oct to 30 Sept

Payment from the scheme will be on a six monthly basis and payment will be made where applicable in early June and early December following the measurement of the scheme in the previous March and September.

4. Basis of Scheme

The scheme will replace the existing Productivity Bonus Scheme.

Entitlement for bonus payments will be based on the achievement of two criteria:

a) Performance against targeted labour/sales ratios
b) Achievement of the Customer Survey Target of 70%

The company will need to achieve its labour/sales target before employees are eligible for payment. For the avoidance of doubt any bonus payable for the achievement of customer service targets will only be paid if performance against labour/sales ratio is achieved.

For the purpose of the bonus scheme, Company targets will be defined as follows:

The company will be defined as the sum of all active catering units.
Labour costs will exclude operational management costs and all exit costs.
Sales will be all counter sales, unit vending sales and hospitality sales.
For bonus payments to be made, the Company must have achieved its profit target for the bonus period. In assessing the performance against target, the process will be conducted in an “open book” manner and in consultation with the CWU prior to performance calculations being communicated.

When the labour/sales ratio target has been achieved at the close of each six month period, all extra money earned by the Company will be classed as “above target efficiency achievement”.

Up to 25% of the value of above target efficiency achievement will be made available for payment to employees and be classed as the “bonus pot”.

For each bonus element i.e. Labour/sales ratio and Customer satisfaction, bonus pot monies will be shared between employees of all active catering units based on contractual hours and attendance.

The Company achieving both its labour/sales ratio and customer satisfaction targets will contribute 25% of its “above target efficiency achievement” to the bonus pot.

The Company achieving its labour/sales ratio target only will contribute 15% of its “above target efficiency achievement” to the bonus pot.

The bonus pot will be divided by the total contractual weekly hours worked by all active catering units to provide an ‘hourly’ bonus figure.

For each employee the hourly bonus figure will be multiplied by his or her weekly contracted hours to calculate an individual bonus payment.

Once an individual bonus payment has been calculated, the following deductions will be considered:

Employees that are absent either through sickness or any type of unauthorised leave, will lose bonus payment in direct proportion to their absence.

Employees joining during the bonus period will only be paid pro rata for their service during the bonus period.

Payments will be calculated at each six month interval and will be to a maximum of £1000 in any full year. A guaranteed payment of £25 will be made to each employee in June and December.

Employees who leave before the payment date will forfeit any money due to them, except for employees who leave on normal or early retirement or early voluntary redundancy, when they will receive a pro-rata payment for all completed weeks worked.

Employees on paid maternity/paternity leave will receive payment in line with terms set above. Employees on unpaid maternity/paternity will receive payment on their return to work.

The performance and customer service targets will be set each year by Quadrants Executive Team in consultation with the CWU at national level. The Quadrant Executive Team reserves the right to review the Company target, should a significant business change occur during the bonus period. Targets set will be both realistic and achievable.

Payments will not be consolidated into pay rates.

Payments will not be reckonable for pension purposes.
5. Training

CWU Representatives will be trained in the mechanics of the scheme in order to both influence its success and enhance the knowledge and participation of all employees and CWU members.

6. Communication

Regular updates will be provided by management to the staff and the CWU on the performance of the Company via the Company’s intranet facility. Interim results will be published in mid May and final results will be published in mid November. The results will be available for review by the CWU.

7. Appeals

Queries relating to the interpretation or operation of the scheme or specific unit results will be dealt with, in the first instance, by the Food Service Manager or equivalent line manager. There shall be a right of appeal either on a group or individual basis. This will be by referral to the Group Manager and CWU representative for resolution, and can if required be escalated to the Regional Business Manager and Area CWU Rep for resolution.

8. Review

This scheme will be reviewed annually, in line with company objectives by the signatories of this agreement.




Steve Buesden Terry Pullinger
Quadrant Managing Director CWU Assistant Secretary

10LTB594.doc

[caraidalba]

Hi. I notice that the agreement was for 18 months. Did it ever get extended? Reason I ask, is that I have a staff member off sick, and I am not sure if she will get her shift allowance for 4 weeks or 8 under this old agreement! Cheers.