Update on pay : 2% no strings offer rejected 25/05/2022 : Page 19

[kevbo]

If Royal Mail are genuinely struggling with money to offer workers a fair and appropriate above inflation pay rise, they will have to go back to the market (stockmarket), and arrange a further allocation of shares (placing) for new and / or existing investors. Some large institutions would happily invest a few hundred million for a discounted stake in Royal Mail's future. They've splurged enough out in dividends, now perhaps use it also to get some more back in during these tough times.

Given RM have just announced £400m+ profits they are clearly not struggling to finance a pay rise, they just don't want to do it in order to keep profits as high as they can.

It was £758 million profit they gave £400 million away to shareholders.

[HTPostman]

If Royal Mail are genuinely struggling with money to offer workers a fair and appropriate above inflation pay rise, they will have to go back to the market (stockmarket), and arrange a further allocation of shares (placing) for new and / or existing investors. Some large institutions would happily invest a few hundred million for a discounted stake in Royal Mail's future. They've splurged enough out in dividends, now perhaps use it also to get some more back in during these tough times.

Given RM have just announced £400m+ profits they are clearly not struggling to finance a pay rise, they just don't want to do it in order to keep profits as high as they can.

It was £758 million profit they gave £400 million away to shareholders.

The part that gets next to no coverage and just seems very strange is of that £400 million, £200 million has been spent by RM buying back shares.

The other £200 million was paid out in dividends - I can understand the logic of money to shareholders this way, most companies on the stock market pay out dividends to attract and retain shareholders.

But buying back approx 40-45 million shares, when there’s approx 966 million shares available (so they haven’t even bought back 5%) is very unusual. Then for it to be ignored by the CWU, I just can’t get my head around it.

[TopperGas]

It's not that unusual as other companies have done it in the past, by reducing the number of shares it then increases the dividends per share in future years. In theory it's a better process than just handing out profits as a dividend, as that's just a one off payment.

[tractorboy2]

I don’t think progress on the Shorter Working Week is a priority right now. Yes, getting the same pay for less hours is a hidden pay increase, but you still have to use fuel to get to work for the same number of days, so finishing 12 (or 24) minutes earlier doesn’t do Jack to assist with paying the bills

The CWU probably still have grand ideas of a 35 hour working week with no loss in pay. But Royal Mail last time round said that a shorter week had cost the business to the extent that they weren't prepared to drop another hour without receiving something substantial in return.

And you're absolutely right an hour or two off the working week doesn't pay the bills

Hours off the working week DOES increase the pay of PT employees though.

[ted_e_bear]

I don’t think progress on the Shorter Working Week is a priority right now. Yes, getting the same pay for less hours is a hidden pay increase, but you still have to use fuel to get to work for the same number of days, so finishing 12 (or 24) minutes earlier doesn’t do Jack to assist with paying the bills

The CWU probably still have grand ideas of a 35 hour working week with no loss in pay. But Royal Mail last time round said that a shorter week had cost the business to the extent that they weren't prepared to drop another hour without receiving something substantial in return.

And you're absolutely right an hour or two off the working week doesn't pay the bills

Hours off the working week DOES increase the pay of PT employees though.

Presumably they won't reduce the amount of work so unless you only want to work a 35hr week doing the same job (assuming of course your duty isn't doable in 2hrs less per week) then it's a safe bet you'll incur overtime so in effect there'll be a bit more money available.

[Postee2]

If Royal Mail are genuinely struggling with money to offer workers a fair and appropriate above inflation pay rise, they will have to go back to the market (stockmarket), and arrange a further allocation of shares (placing) for new and / or existing investors. Some large institutions would happily invest a few hundred million for a discounted stake in Royal Mail's future. They've splurged enough out in dividends, now perhaps use it also to get some more back in during these tough times.

Given RM have just announced £400m+ profits they are clearly not struggling to finance a pay rise, they just don't want to do it in order to keep profits as high as they can.

It was £758 million profit they gave £400 million away to shareholders.

The part that gets next to no coverage and just seems very strange is of that £400 million, £200 million has been spent by RM buying back shares.

The other £200 million was paid out in dividends - I can understand the logic of money to shareholders this way, most companies on the stock market pay out dividends to attract and retain shareholders.

But buying back approx 40-45 million shares, when there’s approx 966 million shares available (so they haven’t even bought back 5%) is very unusual. Then for it to be ignored by the CWU, I just can’t get my head around it.

Very good point. So £200 million already equates to over a 4% pay rise. Astounding really, these are hundreds upon hundreds of millions pounds that are being handed out in dividends and share buy backs yet they are are pleading poverty. Mind blowing.

[HTPostman]

It's not that unusual as other companies have done it in the past, by reducing the number of shares it then increases the dividends per share in future years. In theory it's a better process than just handing out profits as a dividend, as that's just a one off payment.

I get that, but surely the upper section of RM must’ve known it’s a balancing act - by all means pay out the dividends, by all means reduce the number of shares possibly increasing share demand and future dividend price. But they must’ve known at some point they’d need to sort out a pay rise.

I’m just amazed with £400m they didn’t split it 3 ways. If RM had offered us all a near 5% pay rise with no strings before the recent energy rises (so back in Jan/Feb) I bet we’d have taken it and Simon, Terry and all of us would’ve skipped into the sunset holding hands. The share price wouldn’t have tanked, morale wouldn’t be at an all time low and RM could continue with their farcical revisions.

Instead Simon is at risk of being moved on, share price is dropping, Terry and Si are no longer best mates and we are all thoroughly fed up.

[WASD]

5% pre energy hikes wouldn't have done a lot to morale imo. The people who get shafted will still get shafted, and those who've got it easier will be happy as they were already.

Inflation isn't going anywhere except the bad way, interest rates going up is going to hurt those who are borrowing. I don't think any payrise is going to make us happy.

[2yearpostie]

Our rep has told us they want 10am starts for ft staff, midday for pt staff, and they want the first 3 days of sick and delivery supp payment.

[Nickvilla20]

Our rep has told us they want 10am starts for ft staff, midday for pt staff, and they want the first 3 days of sick and delivery supp payment.

I don’t see that personally. They will be basically scraping their two most premium products SD 9am and 1pm. I can believe the sick one but not the delivery supplement.

[Woody Guthrie]

Our rep has told us they want 10am starts for ft staff, midday for pt staff, and they want the first 3 days of sick and delivery supp payment.

It's all f***ing guesswork mate.
RM don't even know what they want but they know they want you to be afraid because it makes any subsequent offer look much better.

The union would obviously like you to think they want everything including the shirt of your back.

It's good for drumming up support for a ballot and again helps to make the final result of negotiations look better for them.

I personally think it's a dishonest and pathetic way to conduct negotiations.

[ted_e_bear]

Our rep has told us they want 10am starts for ft staff, midday for pt staff, and they want the first 3 days of sick and delivery supp payment.

I suspect a classic case of a generous sprinkling of "Chinese Whispers" here.

[cobrakai]

Our rep has told us they want 10am starts for ft staff, midday for pt staff, and they want the first 3 days of sick and delivery supp payment.

It's all f***ing guesswork mate.
RM don't even know what they want but they know they want you to be afraid because it makes any subsequent offer look much better.

The union would obviously like you to think they want everything including the shirt of your back.

It's good for drumming up support for a ballot and again helps to make the final result of negotiations look better for them.

I personally think it's a dishonest and pathetic way to conduct negotiations.

Well said.
This is what I think. It’s never been written down anywhere what either side asked for. It’s a shambles that’s suddenly become a shouting contest.

[postslippete]

Our rep has told us they want 10am starts for ft staff, midday for pt staff, and they want the first 3 days of sick and delivery supp payment.

A part-timer comes in at midday (and not everything is ready for them) and some of our duties are over 30 minutes away from the DO not accounting for traffic. Who's going to get all the Royal Mails Specials delivered before 1pm?

all looks so easy on paper to move shift times. In practice its much harder to implement effectively without encountering many problems. What does Royal Mail want to prioritise? 1st class letters delivered next day or the Priority and Tracked parcels??

The delivery supplement - what about it? You cannot just take something away without giving something back in return. No Union is ever going to accept pay cuts when the company has just made record profits!! Royal Mail would end up committing business suicide doing this

[POSTMAN]

Mrs Brown...
We are required to discuss our proposals with the CWU and look forward to their input. However I can confirm this is about discussing allowances that no longer make sense or are unfair and inconsistent. On this basis we are definitely not looking to remove the delivery supplement in our ideas. The quicker we can discuss our ideas with the CWU the better.