The problem with the agreement was that it was rather vague in what was agreed. It was 2.8% if inflation (and I don't recall seeing an indication as to which inflation index they where talking about?) was between certain bands, but if inflation was above/below that band then the amount of pay-rise might be adjusted. Cynical old me promptly thought "If inflation is above the band RM will take a look and decide they can't afford to give us more, and if it's below the band they'll take a look and decide they can't afford not to give us less!". (Good old, heads I win, tails you lose!)Judgee wrote:I'd expect them to drop it so it is inline with inflation or below. That was the whole point of adding the clause to the agreement!
To be fair, Royal Mail are in a bit of a cleft stick. If they offer us less than 2.8%, even if it's a better "real" pay-rise with the current rate of inflation than 2.8% would've been if inflation had been within the band then people will be moaning about how we've been "shafted", but if they offer us 2.8% anyway then that could have longer term financial implications.
The current low fuel prices should be doing Royal Mail plenty of favours (I suspect the weekly fuel bill is dropping substantially, and cost of lighting/heating all the buildings should be falling too), but what's the expectation for the future through to the end of another 3-year pay deal[1].
[1] Not saying they're going to offer one, nor that we should accept if they did but if I was the Royal Mail I'd be trying to plan^Wguess ahead that far to work out what was the maximum offer I could live with.