Royal Mail chairman says firm is at 'crossroads moment' as it balances union action with productivity woes

[TrueBlueTerrier]

https://www.cityam.com/royal-mail-chair ... vity-woes/

Royal Mail chairman Keith Williams has said unions shouldn’t expect a no-string pay deal “where nothing changes”, as the firm balances dwindling productivity alongside rising union tension.

With both Unite and the Communication Workers Union (CWU) taking aim at Royal Mail, Williams told The Sunday Times that the company has reached a “crossroads moment”.

“I’ve been very clear with investors that this is a difficult, probably the most difficult, union relationship job there is,” he said, before adding: “We’ve run out of road”.

Royal Mail said it offered a 5.5 per cent pay rise to workers, with a further 3.5 per cent dependent on achieving efficiencies. As it stands, Royal Mail’s wage bill is £5.5bn, and Williams said that even the 5.5 per cent offer would result in a “headwind” of £250m.

“What is it that offsets that headwind? Previous agreements with the union have delivered pay but they’ve not delivered the productivity to offset it, in a market where our revenue has been flat.

The problem with where we are is that the unions want a no-strings pay deal where nothing changes. But we need to pay for that pay deal through productivity”, he said.

Adding on Williams’ comments, a Royal Mail spokesperson said “We believe there are no grounds for industrial action. We offered a deal worth up to 5.5% for CWU grade colleagues, the biggest increase we have offered for many years, which was rejected by the CWU.

“We need to reach an agreement on the changes required to ensure Royal Mail can grow and remain competitive in a fast-moving industry, securing jobs for the future and retaining our place as the industry leader on pay and terms and conditions. These changes include: more parcels on Sunday – and at scale, more flexible working patterns and, at the same time reducing our environmental impact i.e. reducing our reliance on flights and increasing our use of rail.”

CWU’s deputy general secretary Terry Pullinger previously lambasted offers as “totally inadequate”, and is trying to rally 115,000 workers to prove it. CWU are expected to post ballot results on 19 July.

Royal Mail posted group-wide operating profit of £758m in May, and raised prices by 10p to 95p first class stamps for customers, as well as imposed hikes across second class and packages.

Unite separately announced that 2,000 Royal Mail managers would strike on 20 July to 22 July. “They [Royal Mail] are being driven entirely by a culture of greed and profiteering which has seized a 500-year-old essential service, driving it close to ruin”, Unite general secretary Sharon Graham said.

Unite also claims that Royal Mail actually imposed £7,000 pay reductions in some cases, which the company fervently denies.

Royal Mail said it was “disappointed” by Unite’s action, having been in discussions with the union since November 2021 about the reduction of 700 managerial roles. The publicly listed firm said there were “no grounds for industrial action”, citing the extended consultation on its recent restructure and commitment to protecting pay for all managers who stay with Royal Mail.

Royal Mail is also facing an Ofcom inquiry into its failure to meet targets in the past year, missing the first class and second class delivery targets by 12 and three per cent respectively.

[WASD]

Cry me a river. Investers bought into a company that is required to deliver letters at a time where it was a given it wasn't a mega money spinner any longer.

Employees productivity has increased over these few years, they are liars. We've had a major increase in parcels, and still have.

We are continually told to delay some mail and parcels in favour of others.

The company fails to change at a pace the market requires because it's led by inexperienced morons. E.G, photo delivery after pandemic.

If culture was addressed, employees would be more welcoming of change in working hours.

Queue further examples of RM is a race to the bottom.

[geordieboy123]

It’s very worrying that they just don’t get it do they? They honestly believe that the offer with strings is generous bloody he’ll there’s a gulf between us

[2yearpostie]

We deliver everything they give us within the time they give us, how can we be ore efficent than that?

[Sir Henry]

[yellowbelly]

https://www.cityam.com/royal-mail-chair ... vity-woes/

....

Royal Mail said it offered a 5.5 per cent pay rise to workers, with a further 3.5 per cent dependent on achieving efficiencies. As it stands, Royal Mail’s wage bill is £5.5bn, and Williams said that even the 5.5 per cent offer would result in a “headwind” of £250m.

....

This is not true surely? I thought they compelled us 2% and the extra 3.5% was efficiency based making a total of 5.5%.
This quote says 5.5% and then a further 3.5%!

[Sir Henry]

Yeah the CityAM piece is incorrect.

It’s very worrying that they just don’t get it do they? They honestly believe that the offer with strings is generous bloody he’ll there’s a gulf between us

They don't believe that. It's about the size of shareholder payouts and how long they can maintain them. If that is attained via fair means or foul or outright shitcockery it doesn't matter to them. A pox upon all their houses.

[derricksmyth]

https://www.cityam.com/royal-mail-chair ... vity-woes/

....

Royal Mail said it offered a 5.5 per cent pay rise to workers, with a further 3.5 per cent dependent on achieving efficiencies. As it stands, Royal Mail’s wage bill is £5.5bn, and Williams said that even the 5.5 per cent offer would result in a “headwind” of £250m.

....

This is not true surely? I thought they compelled us 2% and the extra 3.5% was efficiency based making a total of 5.5%.
This quote says 5.5% and then a further 3.5%!

So do they mean that they have offered a straight up 5.5% ? No stupid conditions?

[clashcityrocker]

Another Crossroads moment:

AMY SILENCES CHANTING SKINHEADS

ACTRESS Ann George, who plays Amy Turtle in the ”Crossroads’ A.T.V. series, faced a gang of chanting ‘skinheads’ when she opened the Chasewater Festival on Sunday.

When the actress stepped up to perform the official opening ceremony in front of the 4,500 crowd the gang started chanting ‘Amy Turtle is our Queen’.

But like the formidable character she portrays on television, Miss George refused to be rattled. She told the skinheads to quieten down and they did, allowing the actress to carry on with the ceremony.

[cockneyrebel]

We are at a CROSSROADS ??
But CEO GOT BONUS OF £140,000 what crossroads Mr Williams
Achievements ?? what achievements name them please
Just employed another finance man £100,000 plus
How does he improve things to the tune of that amount
Answers on a postage stamp please
Answer is SIMPLY HE WONT !!!
Strike forgone conclusion
Like everyone says THEY JUST DONT GET IT DO THEY

[Acca Dacca]

https://www.cityam.com/royal-mail-chair ... vity-woes/

....

Royal Mail said it offered a 5.5 per cent pay rise to workers, with a further 3.5 per cent dependent on achieving efficiencies. As it stands, Royal Mail’s wage bill is £5.5bn, and Williams said that even the 5.5 per cent offer would result in a “headwind” of £250m.

....

This is not true surely? I thought they compelled us 2% and the extra 3.5% was efficiency based making a total of 5.5%.
This quote says 5.5% and then a further 3.5%!

So do they mean that they have offered a straight up 5.5% ? No stupid conditions?

I think whoever has written the article has made an error - should be 5.5% with 3.5% of that being non contractual and conditional on meeting undefined productivity targets

[Sir Henry]

Is this crossroads the same one where legend has it that a certain someone sold his soul to the devil in exchange for mastery of a huge 'fiddle'

[fb1969]

FFS the 5.5% lie is told yet again, even the f***ing chairman lies about it.

The year was nearly two months old when the pay offer was made. 1.5% was from from when changes took place and couldn't have been for the whole year.

Right now the so called 1.5% is worth barely 1% over the year, it never existed as 1.5%. Super Si with all of his spreadsheets and he can't do basic mathematics!

[norris9]

Recent and upcoming changes Royal Mail have made to increase profits:

Raised postage prices by 10p to 95p first class stamps for customers, as well as imposed hikes across second class and packages.

Axed 700 managerial roles

Soon to bring in barcoded stamps Any existing stamps will be voided making Royal Mail a small fortune. The barcoded stamps will also save them a lot of money as people will no longer be able to reuse stamps which has been so easy to do for years.

etc, etc, etc...

[norris9]

WE SHOULD ALREADY BE GETTING A £500 BONUS EACH XMAS FOR THE WORK WE DO ALL YEAR ROUND, BUT ESPECIALLY AT XMAS!

Why do we have to be told we need to grind our asses off even more than we already are just to get a measly 2% bonus, ie £500.


The 5.5%:

The 2% pay rise + 1.5% for agreeing changes + 2% bonus is only half of what inflation is...... and we have to grind our asses off more to get one part of it and bend over backwards, changing our working hours and days for another part of it!


Royal Mail - You are having a laugh!