Royal Mail commits to further talks with CWU 'as a matter of urgency'

[TrueBlueTerrier]

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Royal Mail has stated that it is committed to further talks with its workers’ union, the Communication Workers Union to prevent industrial action and reach an agreement on its long-running pension dispute.

In response to the result of the Communication Workers Union’s ballot for industrial action, which presented 89.1 per cent of staff in favour of industrial action, Royal Mail has displayed its eagerness to engage in further discussions.

While a ballot for industrial action does not necessarily guarantee a strike, Royal Mail has said that it is “committed to further talks as a matter of urgency, to reach agreement with the CWU. There are no grounds for industrial action. We want to reach agreement.”

Royal Mail added that it is “very disappointed by the announcement that CWU members have voted in favour of industrial action”. However, it said that due to the fact that there was a 74 per cent turnout for the ballot, and taking into account the frontline employees who are not union members, (a total of 18,000 people), only 57 per cent backed a strike.

“Industrial action is damaging for our business. It undermines the trust of our customers. It makes it harder to pay for the great terms and conditions we provide for our employees. National industrial action means the current offer from Royal Mail, including on pensions, will be taken off the table,” Royal Mail said.

Nonetheless, Royal Mail highlighted that in 2013 it made an Agenda for Growth, a legally binding agreement, with the CWU. As a result of this, Royal Mail has “brought to the CWU’s attention the contractual dispute resolution procedures included in the AFG, which both sides are required to follow once instigated. They escalate to independent external mediation, which we expect will take close to Christmas to be completed, and may be longer. We believe these dispute resolution procedures must be followed. The union cannot take industrial action until they have been completed.”

In a letter, Royal Mail head of pensions strategy Douglas Hamilton commented: “The CWU came forward with a Wage in Retirement scheme, but, unfortunately, this scheme would not be sustainable, secure or affordable for the Company or our employees. The CWU’s scheme is an attempt to set up a defined ambition type scheme within the current defined benefit regulatory framework. Unfortunately that just doesn’t work.

Among new pay proposals, Royal Mail has proposed the replacement of the current defined benefit pension scheme, the Royal Mail Pension Plan, with another type of DB scheme, or the chance for members to transfer to another defined contribution scheme. Royal Mail has also offered improvement for members of the Royal Mail Defined Contribution Plan with a maximum company contribution of 10 per cent.

Hamilton added: “Unfortunately, our current defined benefit scheme is just not affordable. If no changes were made, annual contributions would increase next year from around £400m to around £1.2bn. That increase is at least three times more than our annual free cash flow. That’s on top of what we already pay into the scheme. No business could do that.”

“In short, we’ve put forward a proposal which provides a good and fair outcome for members of our defined benefit pension scheme. We’re also proposing increasing Royal Mail’s contribution to the Royal Mail Defined Contribution Plan, which benchmarks very well compared to other large employers in the UK.”

The company highlighted that the Post Office is a separate business from Royal Mail and its employees do not have involvement with the dispute.

[Phantom]

I would wait for the Union response as this could be a pack a lies.

[rubberbond]

I find it strange that the Agenda for Growth only ever seems to apply one way, except when it doesn't suit Royal Mail. They appear to have broken the thing with impunity l. Not worth the paper it's written on, never was.

[lala]

And I thought that the only way to get more talks was to vote no...

Surely that wasn't a RM lie?

[chickenwittle]

Why can't they accept the ballot for what it was , a massive yes vote rather than if and buts about turnout and non union members . They just keep on getting on the wrong side of their work force with these comments .

[k979aaa]

Well they were not for talking before the vote that was for sure here's the best deal and that's it take it or leave it funny how a vote can change minds but will it change their attitude to us all for we all are the union common purpose through solidarity.

[Deadly]

Why can't they accept the ballot for what it was , a massive yes vote rather than if and buts about turnout and non union members . They just keep on getting on the wrong side of their work force with these comments .

I'd agree, it's just a sign of desperation on their part.

[Celtic Postman]

Strike date announced....
48 hr strike starting 11:00 on Thursday 19th Oct

[Decky Boy]

Why You Should Never Cross a Picket Line

Interesting article from the Observer Newspaper in 2014 on why we should NEVER cross a Picket Line

http://ndsmcobserver.com/2014/09/never- ... cket-line/" onclick="window.open(this.href);return false;

[El-Bandito]

What does RM mean by further talks? Are RM waiting for Moya to have some free time from her Easyjet shift? E.G.M now, time to sack the part time imposter of a CEO.

[Gary_Carty]

Where can we get a copy of The Agenda For Growth document.

I would like to hold this up when managers start to talk about us breaking some rules

[TrueBlueTerrier]

There is a link, or possibly even a document in the DOWNLOADS section of this board