2 tier workforce : Revised entry terms for new employees

[POSTMAN]

LTB 268/22 – Royal Mail – Change Proposals

Proposal

• We propose these changes would apply to all OPG grade employees in Delivery and Processing recruited on or after a certain date which we want to agree with you. They elements that would differ are as follows and we’d like to discuss the specifics with you:
• 40 hours per week,
• Lower hourly rate (c £24,170 for outside London and £28,670 for London) but with a higher OT rate at 1.25

Reasons

These new T&Cs would not impact existing employees but would give us immediate benefit to start reducing the growing gap to our competitors cost base and drive more value for our customers making Royal Mail more competitive in the market. The benefit would accelerate with attrition over time but continue to be positioning Royal Mail as market leaders in T&C’s with pay rates at least 10% higher plus market leading pension offering

We want to continue being the leading employer in the industry with the best rates of pay and the best terms and conditions, but the reality is we pay significantly more than the competition, and this isn’t sustainable. Our competitors operate at a lower cost and can therefore charge lower prices.

One way to address this is through creating terms and conditions for new starters which are still much higher than our competitors but around 10% less than current employees. To offset this, a higher, market competitive overtime rate would be available.

This proposal does not affect current employees. It will enable us to remain an industry leading employer AND be competitive in the market.

[POSTMAN]

Revised terms and conditions for new employees - lower hourly rate of approx £11.62 and salary of £24,170 a year outside of London a new full time employee would earn a minimum of £1,580 less on basic pay.

However they would be expected to work 40 hours per week (3 hours more than current FT employees) meaning the impact is much greater and significantly worse terms and conditions!

[Acca Dacca]

Im confused

Do new full time employees exist in delivery?

The agreement is the current part timers get offered full time hours first based on seniority and any new recruit is employed on a part time contract

When is the last time a new start was full time? Ive never seen it.

So do they really mean that going forward any part timer being offered a full time contract will be offered one on inferior terms and conditions? It cant as it specifically says new starters and wont affect current employees yet........well, no new starts are ever full time

Or does it mean that they will be part time but their pay will be at a lower rate but then where does the 3 extra hours come into it?

[Cucumber]

Race to the bottom.

Although I can't imagine this will play on the minds of current employees with everything else going on.

[Fdeezy]

All new starters to be full time, part timers never get made up.

Wouldn't mind the 1.25 OT as a carrot at some point though. Not everything else, just that.

[2yearpostie]

Is it even legal to have 2 different pay rates for the same job? I think they are on unsafe ground there.

[norris9]

40 hours....wow!

New recruits will be dropping like flies. Royal Mail's turnover of staff is going to be ridiculous.

I always hear from management that 'new staff want full time hours and this is why they leave as it takes too long to offer them full time work'.

But I have not heard a single Postie say this is why they were leaving. People usually leave because of the physicality of the job, retirement, they have better opportunities or they've been harassed too much by management...

I reckon it's more likely that new posties will now leave because 40 hours is too much, and on top of that having to work Saturdays and Sundays and be on a lower wage.

Come off it! these guys at the top have no idea about the physicality of the job. They think we are all out for a casual stroll or something!

[TopperGas]

All new starters to be full time, part timers never get made up.

Wouldn't mind the 1.25 OT as a carrot at some point though. Not everything else, just that.

What's the betting at some point part timers will be told if they want a full time contract then they'll have to accept the reduced pay per hour?

What I can't understand is why the business is now moving back to 40 hour contracts, when all the full time rounds are now set up for 37 hour week's.

[Schiff]

All new starters to be full time, part timers never get made up.

Wouldn't mind the 1.25 OT as a carrot at some point though. Not everything else, just that.

What's the betting at some point part timers will be told if they want a full time contract then they'll have to accept the reduced pay per hour?

That will definitely be the line.

What I can't understand is why the business is now moving back to 40 hour contracts, when all the full time rounds are now set up for 37 hour week's.

For annualised hours. Work 37 hours per week for 46 weeks, then work 40 hours per week plus 23 hours extra per week over the other 6 weeks without getting a penny in overtime.

[norris9]

All new starters to be full time, part timers never get made up.

Wouldn't mind the 1.25 OT as a carrot at some point though. Not everything else, just that.

What's the betting at some point part timers will be told if they want a full time contract then they'll have to accept the reduced pay per hour?

If that happens they can always do overtime instead.....assuming some will be available.

[TopperGas]

All new starters to be full time, part timers never get made up.

Wouldn't mind the 1.25 OT as a carrot at some point though. Not everything else, just that.

What's the betting at some point part timers will be told if they want a full time contract then they'll have to accept the reduced pay per hour?

If that happens they can always do overtime instead.....assuming some will be available.

The security of a full time contract is what some people want and it helps when seeking a mortgage etc.

[Minischoles]

All new starters to be full time, part timers never get made up.

Wouldn't mind the 1.25 OT as a carrot at some point though. Not everything else, just that.

What's the betting at some point part timers will be told if they want a full time contract then they'll have to accept the reduced pay per hour?

What I can't understand is why the business is now moving back to 40 hour contracts, when all the full time rounds are now set up for 37 hour week's.

That's exactly what they will do - they did it in Customer Service with agency staff when they took them on. If you were recruited before 2015 into Royal Mail, you don't have to work Saturdays (you can do it OT, but it's not part of your hours).

Anyone taken on after that, HAVE to work Saturdays, you get no choice in the matter.

A two tier workforce has existed in RM for 7 years and the union didn't give two sh***s, more concerned with protecting the members that didn't have to work saturdays, and they'll probably throw part timers under the bus as well to protect those already on full time contracts.

They'll sell it the same way as well - championing it as a win (we finally got part timers full time contracts - same as we finally got agency taken on)

Then Royal Mail can just let attrition take care of the oldies, and suddenly you have a new workforce all on shittier contracts.

[norris9]

The security of a full time contract is what some people want and it helps when seeking a mortgage etc.

Any part timers who are in that situation and get offered full time hours before this is implemented should probably take it then, even if they didn't want to move to full time hours this early.

It may be their last chance to get the pay rate they currently get and get the hours they need.

[jagger]

40 hours....wow!

New recruits will be dropping like flies. Royal Mail's turnover of staff is going to be ridiculous.

I always hear from management that 'new staff want full time hours and this is why they leave as it takes too long to offer them full time work'.

But I have not heard a single Postie say this is why they were leaving. People usually leave because of the physicality of the job, retirement, they have better opportunities or they've been harassed too much by management...

I reckon it's more likely that new posties will now leave because 40 hours is too much, and on top of that having to work Saturdays and Sundays and be on a lower wage.

Come off it! these guys at the top have no idea about the physicality of the job. They think we are all out for a casual stroll or something!

Why would 40 hours be such a problem?
I don’t agree with the proposal as I believe a two tier workforce is fundamentally wrong. But many people come in and work for nothing before their start time. Others do 30 hours overtime every week.
It’s hard to get any decent new starter’s as most people want a full time jobs. Offering new starters full time hours is a good idea.
As I said, there are plenty of things wrong with this proposal, but I don’t think 40 hours is one of them.
Is the job really that physical? I’m sure there are much harder jobs out there.

[Acca Dacca]

40 hours....wow!

New recruits will be dropping like flies. Royal Mail's turnover of staff is going to be ridiculous.

I always hear from management that 'new staff want full time hours and this is why they leave as it takes too long to offer them full time work'.

But I have not heard a single Postie say this is why they were leaving. People usually leave because of the physicality of the job, retirement, they have better opportunities or they've been harassed too much by management...

I reckon it's more likely that new posties will now leave because 40 hours is too much, and on top of that having to work Saturdays and Sundays and be on a lower wage.

Come off it! these guys at the top have no idea about the physicality of the job. They think we are all out for a casual stroll or something!

Why would 40 hours be such a problem?
I don’t agree with the proposal as I believe a two tier workforce is fundamentally wrong. But many people come in and work for nothing before their start time. Others do 30 hours overtime every week.
It’s hard to get any decent new starter’s as most people want a full time jobs. Offering new starters full time hours is a good idea.
As I said, there are plenty of things wrong with this proposal, but I don’t think 40 hours is one of them.
Is the job really that physical? I’m sure there are much harder jobs out there.

As more and more automation comes in, the majority of those 40 hours are going to be spent out on delivery

How long do you think the delivery span will be in three years time on a 40 hour contract?