MRM.COM : Negotiators' agreement - colleague Q&A

[POSTMAN]

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1. The union has approved the agreement. What happens now?
The agreement is subject to a ballot of CWU members, during which CWU will formally recommend the deal.

2. What is the period covered by the agreement?
The pay deal covers April 2017 to March 2020. The agreement on pensions is designed to be a long-term approach to the provision of retirement benefits for employees at Royal Mail.

3. Why is this good for everyone?
This is a watershed moment because both sides recognise the need for change.
There’s recognition that we need to be even faster; even more responsive; even easier to do business with.

The agreement will help us to all work together to create a culture of innovation and very high quality of service. It’s a commitment to continue to work closely together to build a great work culture, from the delivery office upwards. That’s the best way to win new customers and grow our business. And that’s how we can remain the leading delivery company in the UK and continue to provide as many good quality jobs as possible.

4. How will the deal benefit the business and our customers?
We are making a really important joint commitment to build on our position as the leading delivery company in the UK. It will help us increase our flexibility and offer the services our customers are asking for, including next day delivery for items ordered late in the evening. We have made a joint commitment to working together to deliver a high quality of service. This includes all units clearing all their scheduled mail on a daily basis. And we’ll be doing a joint review of our pipeline together with CWU. This will help us to grow, be more efficient and, ultimately, provide security for our employees.

5. What’s going to change day-to-day for colleagues?
You’ll see the changes on pay and pensions coming through soon. On top of that, one of the most important changes will be the way we resource within our business. I know that this can be a real challenge, so we’re redoubling our efforts to effectively resource to workload. Even simple things, like weekly resourcing meetings at a local level, can make a big difference. In many areas of the operation, you will see us trialling and implementing new ways of working. For example, we will be trialling automated hours data capture in some sites. More importantly, we hope we will see a changing culture across our operation – with more effective working between Royal Mail and CWU.

Pensions

6. Are you definitely closing the Royal Mail Pension Plan (RMPP) on 31 March 2018?
Yes. Unfortunately we had to announce that, following Trustee approval, the RMPP would close to future accrual in its current form from March 2018. This has been a very hard decision to make. But the increase in the cost of the Plan means it is just not affordable. If we didn’t make changes, contributions were expected to increase from around £400 million, to £1.26 billion per annum.

7. What is a Collective Defined Contribution scheme?
Royal Mail and CWU have committed to the introduction of one pension scheme for all employees. Subject to the necessary legislative changes, this will be a Collective Defined Contribution Scheme with a Defined Benefit Cash Balance Scheme sitting alongside it.

Collective Defined Contribution schemes have fixed contribution rates from the employer and members, but pool investment and longevity risk between members. There is a target for what the employee will receive in retirement, but this target is not guaranteed. The actual benefit payable will depend on the scheme’s investment performance. There is no need for scheme members to buy an annuity on retirement, as the scheme pays the pension.

8. How will the Defined Benefit Cash Balance Scheme work?
Under the Defined Benefit Cash Balance Scheme, the Company guarantees a minimum lump sum at normal retirement age. Members are guaranteed to receive the total value of the contributions paid towards their lump sum up to retirement. In addition, discretionary increases will be applied up to retirement, subject to the investment performance of the scheme each year. Once applied, these increases will also be guaranteed.

9. Does this pension agreement apply to Unite members?
We have offered the same pension deal to Unite but have not yet had the opportunity to conclude discussions.

10. What will the Company’s contribution be under a Collective Defined Contribution scheme?
The Company would contribute 13.6% of pensionable pay and members would contribute 6% of pensionable pay.

11. What are the contribution rates for the transitional arrangements?
For RMPP members and members of the Royal Mail Defined Contribution Plan (RMDCP) with a minimum five years’ service, Royal Mail will implement a DBCBS. The Company will contribute 13.6% of pensionable pay towards members’ retirement accounts, and a further 2% for other benefits, including death in service and ill-health. Members will continue to contribute 6% of pensionable pay towards their retirement lump sums.

Company contribution
15.6% (including 2% for other member benefits including death in service and ill health)

Employee contribution
6%

We will increase the Company contribution to the RMDCP by 1% in each year, up to a maximum of 10%. The Company will move current and future RMDCP members in the standard section of the plan to the improved top tier of contributions (10% from the Company and 6% from the member).

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12. When can RMPP members opt into the Defined Benefit Cash Balance Scheme?
All RMPP members will be automatically defaulted into the Defined Benefit Cash Balance Scheme from 1 April 2018. Members will receive a letter and booklet from the Company in the coming weeks, explaining more about our agreement on pensions.

13. Why are you defaulting members into the Defined Benefit Cash Balance Scheme?
We believe that the Defined Benefit Cash Balance Scheme will be the best option for the majority of RMPP members. RMPP members will have the choice to opt into the Defined Contribution scheme if they wish. Members will receive a letter and booklet from the Company in the coming weeks, explaining more about our agreement on pensions.

14. When can RMDCP members opt to join the Defined Benefit Cash Balance Scheme?
Members of the Royal Mail Defined Contribution Plan (RMDCP) with five years’ Company service, including four years at the standard contribution level, will have the option of joining the DBCBS.

15. How likely is it that the Government will enable Collective Defined Contribution schemes?
We believe there is a strong case for Collective Defined Contribution schemes and will work with CWU to make that case to Government.

16. When will the new Collective Defined Contribution scheme be available?
It depends how quickly changes to the current legal and regulatory framework could be brought about.

Pay and the shorter working week

17. Who does the pay deal apply to?
The pay deal applies to all employees in CWU represented grades in Core Operations, Logistics (excluding RM Fleet), Engineers, RMSS and Royal Mail International.

18. Does the pay deal apply to Unite members too?
No. We are in separate discussions with Unite on a pay deal for managers.

19. Will the pay offer be backdated?
Yes. The pay offer is backdated to October 2017.

20. How will the shorter working week affect part-time colleagues?
In addition to the pay rise we have agreed, for part-time colleagues the hourly rate will increase to reflect the shorter working week of full-time colleagues.

21. If new recruits start on 35 hours, doesn’t that mean they’re paid more per hour than existing colleagues?
No, new colleagues will be paid the same hourly basic pay rate as existing colleagues.

22. What impact will the change in delivery times have on our shifts?
The vast majority - more than 1,000 – of delivery offices will see no change to start and finish times as a result of this agreement. There will be no changes to shift patterns in Processing. Delivery offices will find out how they are affected three months before deployment.

23. When will a 35-hour working week be implemented?
From October 2018, there will be a one-hour reduction to the working week (currently 39 hours). This is subject to: the deployment of the new last letter delivery time; and the completion of specific trials in the operation to help improve customer service and productivity. These include delivery methods and automated hours data capture.

From October 2019, there will be a further one-hour reduction to the working week, subject to a joint evaluation of factors including ongoing efficiency, implementation of changes from trials in the operation and technological changes.

We have a joint commitment with the CWU to move towards a 35-hour week by 2022.

Operational and cultural changes

24. When are the changes to delivery times being introduced? How will I know if I’m affected?
Delivery offices will find out how they are affected three months before deployment. The vast majority - more than 1,000 – of delivery offices will see no change to start and finish times as result of this agreement. There will be no changes to shift patterns in Processing.

25. What impact will the change in delivery times have on our shifts?
There will not be any change to the length of our employees’ shifts as a result of the changes in delivery times. Anyone finishing later will also start work later in the day.

26. Will delivery times be the same for everyone in every office, or will it be different depending on my walk?
Delivery times will vary between offices. The vast majority – more than 1,000 – of delivery offices will see no change to start and finish times as a result of this agreement.

27. What will the agreement do to make Royal Mail a more collaborative place to work?
We want to remain the best employer in our industry. That means working together across all areas of the business to improve industrial relations, the working environment and colleague wellbeing.

For example, we’re putting in place new national strategic structures to ensure closer working and development of new products and services. These include an Innovation Forum, and a group that will review our business performance on a quarterly basis. You’ll also see joint training, engagement sessions and new, restructured meetings with CWU as we seek to improve our culture.

And we’ll be working together to improve the things that can really make a difference to your working life, such as improving resourcing and better management of annual leave – especially short notice requests.

[POSTMAN]

We have reached a negotiators’ agreement in principle with CWU on pensions, pay, the shorter working week, culture, operational changes and the Agenda for Growth. CWU will now ballot members on the proposed agreement, and recommend they vote in favour.

https://www.myroyalmail.com/sites/defau ... 0FINAL.pdf" onclick="window.open(this.href);return false;

[POSTMAN]

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Pay and the shorter working week

From October 2017 - March 2019, eligible colleagues3 will receive a pay increase of 5%, including base pay, overtime and allowances.

From 1 April 2019, a pay increase of 2%, including base pay, overtime and allowances. The next pay review will be in April 2020.

From October 2018, a one-hour reduction to the working week (currently 39 hours).

This is subject to:

the deployment of the new last letter delivery time
and the completion of specific trials in the operation to help improve customer service and productivity - these include delivery methods and automated hours data capture.
From October 2019, a further one-hour reduction to the working week, subject to a joint evaluation of factors including ongoing efficiency, implementation of changes from trials in the operation and technological changes.

Further key points

A commitment to move towards a 35-hour week by 2022
From October 2018, new full-time colleagues will be recruited on a 35-hour week.
Part-time colleagues

An increase in hourly rate of pay in October 2018 and 2019 to reflect the shorter working week of full-time colleagues. This is in addition to the pay award for all eligible colleagues.

We will honour our agreements regarding part-time colleagues:

A commitment to ensuring part-time colleagues’ contracted hours reflect the hours they actually work
Part-time colleagues’ contracted hours will be jointly reviewed every March and September. Where appropriate, increased contracted hours will be offered to reflect the hours actually worked and planned
Temporary increases in contracted hours to be offered to part-time colleagues to manage seasonal variations or peaks in demand.
The Agenda for Growth

A joint review of the Agenda for Growth will take place in 2019. If the review shows satisfactory progress, we may extend our commitments to 2022. In the meantime, our commitments will remain in place until 2020.

3 The agreement applies to employees in CWU represented grades in Core Operations, Logistics (excluding RM Fleet), Engineers, RMSS and Royal Mail International. It is subject to contract.

Separate negotiations will take place for other CWU grade employees within Royal Mail as per current arrangements. It does not apply to Unite-represented grades. A separate agreement has been finalised between Parcelforce Worldwide and the CWU. Details of arrangements for RM Fleet and Parcelforce Worldwide employees are appended to the negotiators’ agreement.

[POSTMAN]

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Operational changes and working together

We will carry out a joint review of the operational pipeline to satisfy customer requirements and adapt to changing market needs.

There will be a joint commitment to working together to deliver a consistently high quality of service. This includes all units clearing all their scheduled mail on a daily basis.

As part of our strategy of ensuring a contemporary USO, and responding to customer needs, we will extend later acceptance times and last letter delivery times.

We will introduce later collection and acceptance times at NDC, YDC and NWDC. There will be later connections through our Logistics network.

Last letter delivery times will move back by 30 minutes to 3:30pm in urban areas and 4:30pm in rural areas.

Further key points

The vast majority - more than 1,000 - delivery offices will see no change to start and finish times as a result of this agreement. There will be no changes to shift patterns in Processing
Delivery offices will find out how they are affected three months before deployment
There will be no further changes to last letter delivery times for three years
There will be a commitment to trial alternative delivery methods.
Working together

We are committed to working together across all areas of the business to improve industrial relations, the working environment and colleague wellbeing.

There will be a commitment to an effective working culture at local office level, enabling us to meet the needs of our customers.

There will be new national strategic structures to ensure closer working and development of new products and services.

Further key points

We are recommitting to the IR framework. This will make it a more efficient tool for dispute resolution
There will be a joint review to improve the management of sick absences and improve overall attendance levels
We will work together to improve resourcing and the better management of annual leave
The driver career path to MGV and LGV roles will be expanded.

[POSTMAN]

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Pensions

Royal Mail and CWU have committed to the introduction of a Collective Defined Contribution (CDC)1scheme for all employees, subject to the necessary legislative and regulatory changes.

A Defined Benefit Cash Balance Scheme2 (DBCBS) will sit alongside it. The new arrangements will target, although not guarantee, providing a similar level of member benefits as the current Royal Mail Pension Plan (RMPP), while significantly reducing risk to the Company.

Royal Mail and CWU will lobby the Government to make the necessary legislative and regulatory changes so that a CDC scheme can be established.

The Company and union will review progress on legislative and regulatory changes to enable the introduction of a CDC scheme after 12 months.

The RMPP will close to future accrual in its current form on 31 March 2018. The Company will put in place the following transitional pension arrangements from 1 April 2018:

For RMPP members, Royal Mail will implement a DBCBS. The Company will contribute 13.6% of pensionable pay towards members’ retirement accounts, and a further 2% for other benefits, including death in service and ill-health. Members will continue to contribute 6% of pensionable pay towards their retirement lump sums
Members of the Royal Mail Defined Contribution Plan (RMDCP) with five years’ Company service, including four years at the standard contribution level, will have the option of joining the DBCBS
We will increase the Company contribution to the RMDCP by 1% in each year, up to a maximum of 10%
The Company will move current and future RMDCP members in the standard section of the plan to the improved top tier of contributions (10% from the Company and 6% from the member).
We are awaiting Government approval for one aspect of the DBCBS design that will allow it to work more efficiently for members.

1 Collective Defined Contribution (CDC) schemes have fixed contribution rates from the employer and members, but pool investment and longevity risk between members. There is a target for what the employee will receive in retirement but this target is not guaranteed. The actual benefit payable will depend on the scheme’s investment performance. There is no need for scheme members to buy an annuity on retirement, as the scheme pays the pension. But that pension, and any future increases to that pension, are not guaranteed, and will depend on the scheme’s investment performance. The combination of these features makes for a more efficient design for members when compared with a pure Defined Contribution scheme, but with no benefit guarantees to be underwritten by the employer. The primary legislation for this type of scheme is in place (through the Pension Schemes Act 2015), but the secondary legislation has not been enacted. CDC schemes are already used in countries such as the Netherlands and Canada.

2 Under the Defined Benefit Cash Balance Scheme, the Company guarantees a minimum lump sum at normal retirement age. Members are guaranteed to receive the total value of the contributions paid towards their lump sum up to retirement. In addition, discretionary increases will be applied up to retirement, subject to the investment performance of the scheme. Once applied, these increases will also be guaranteed.

[vigilante]

Been there, heard it all before.

The main problem with me is RM actually sticking to an agreement!
IR is just a joke at local level and the 'working together' element of the last agreement is just embarrassing.
Budgets is all the shareholder and managers care about and no matter what agreement is in the CWU will struggle to break this ethos.

On the delivery side this is all too vague... 1000 offices will see no change?
Which ones then? And only given out 3 mnths after we agree......NO!

Don't be drawn into pensions ok, SWW ok, Pay OK, what about new delivery trials, timed deliveries (parcels)?

Too vague!

[Ozzvaldo]

These releases lose me as soon as a mention of "The desire to create a work culture that the business can thrive in", or words to that effect, occurs.

The bastards (excuse my language) do not give a toss about this objective.

Pitting runners against those doing the job properly. Belittling those wanting to finish on time when facing unmanageable workloads....where else do employees have to make a case to be "allowed" to make appointments or pick young children up from school? Refusing to pay overtime for genuine hours worked. Moving duty holders to accomodate overtime people who will only come in to do specific duties. Paying those on easy deliveries 90 minutes for sitting on their arses at home while refusing to revise deliveries that are 90 minutes over each day....we really do have as much variation as this in my office. Name your poison, there's plenty more.

This is the only language the martinets in charge of many offices understand, and I guarantee that it won't change simply because of some limp promises in a joint agreement. If Royal Mail and the CWU weren't determined to eliminate this thuggery after the 2010 "Deal of the Century" I don't hold out a lot of hope "going forward", as these management types like to say, on this one.

[datasaint]

"We will increase the Company contribution to the RMDCP by 1% in each year, up to a maximum of 10%"

I already put in 6% with RM adding 9%, so a jump to 10% isn't exactly groundbreaking, especially when those on the DBCS are getting 13.6% hardly fair is it.

[dids620]

Been there, heard it all before.

The main problem with me is RM actually sticking to an agreement!
IR is just a joke at local level and the 'working together' element of the last agreement is just embarrassing.
Budgets is all the shareholder and managers care about and no matter what agreement is in the CWU will struggle to break this ethos.

On the delivery side this is all too vague... 1000 offices will see no change?
Which ones then? And only given out 3 mnths after we agree......NO!

Don't be drawn into pensions ok, SWW ok, Pay OK, what about new delivery trials, timed deliveries (parcels)?

Too vague!

I work in a Delivery Office and if I haven't heard if my office is affected by the closing date of the vote its gonna be a No vote from me. Been shafted too many times

[vigilante]

Dids there will be many who think like you especially in delivery.
This is all too vague and changes in delivery will be massive which is being brushed aside in favour of getting the vote for pensions and pay!
This is all about our working future and how we will be doing the job in the future as well!
Later starts?
What is going on about the new delivery trials in Walsall?

[seaside]

Been there, heard it all before.

The main problem with me is RM actually sticking to an agreement!
IR is just a joke at local level and the 'working together' element of the last agreement is just embarrassing.
Budgets is all the shareholder and managers care about and no matter what agreement is in the CWU will struggle to break this ethos.

On the delivery side this is all too vague... 1000 offices will see no change?
Which ones then? And only given out 3 mnths after we agree......NO!

Don't be drawn into pensions ok, SWW ok, Pay OK, what about new delivery trials, timed deliveries (parcels)?

Too vague!

yes agree with you, feels like its going to get a lot harder for us in deliveries.

[Speedylegs59]

The first sign of a deal when you're going to be shafted yet again is when they throw bags of silver at you. Far too many 'shortsighted, it doesnt affect me, money money money' will sadly vote it in..

[cliffeyhez]

If you tolerate this, then your children will be next.

[vigilante]

If you tolerate this, then your children will be next.

Precisely Cliff! That's what we are fighting for! Love the Manics!

[General Mannerheim]

Been there, heard it all before.

The main problem with me is RM actually sticking to an agreement!
IR is just a joke at local level and the 'working together' element of the last agreement is just embarrassing.
Budgets is all the shareholder and managers care about and no matter what agreement is in the CWU will struggle to break this ethos.

On the delivery side this is all too vague... 1000 offices will see no change?
Which ones then? And only given out 3 mnths after we agree......NO!

Don't be drawn into pensions ok, SWW ok, Pay OK, what about new delivery trials, timed deliveries (parcels)?

Too vague!

I agree.The fact that they don't follow ANY agreements whatsoever be they attendance, grievance or conduct properly won't simply change because the mangers are not interested in changing,the same charlies in the same positions shitting on everybody.
The IR framework is a bag of shite, lost count of the times a disagreement has been filed and then vanished with feck all done.
I really think the HQ lot are living in Walter Mitty land and have no feckin idea how it is on the frontline or they just don't give a f**k.