Joint Statement on Revision of Air Network Services

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Letter to Branches




No. 767/14
Ref: 211.08
Date: 25th November 2014

For the Attention of:

All Postal Branches
Divisional Representatives
Area Distribution Representatives


Dear Colleague

Joint Statement on Revision of Air Network Services

In August 2014 the department were approached by the business who wished to discuss a proposed review of the Air Network. The business’ position was that given the reductions in 1st Class mail volumes and the significant costs associated with the operation of air services that on some mid distance routes efficiencies could be achieved utilising an alternative road based network.

The original management proposal requested an advance commitment that the CWU would endorse all future plans for flight cessations and engage on local discussions on replacement road services. However, at the National Logistics Steering Group (NLSG) meeting on the 10th October 2014, the business was informed that under no circumstances would the department endorse this proposal. We confirmed that we would expect the CWU to be fully involved in developing the potential for any change and given the opportunity to influence and shape any review prior to any decision being taken.

Clearly the review has the potential for both commercial efficiency and CWU job creation however we insisted that issues such as Quality of Service, workplan compliance and the potential for growth had to have equal status in any deliberation. Most importantly we would expect our members at affected sites to have proper protections in place and that a structured process for engagement and local negotiation would be created should any flight cessations be agreed.

Against this backdrop and following extensive discussions, the attached Joint Statement has been agreed and endorsed by the Postal Executive. Branches will note that the document places the CWU in the right position to influence the review through the creation of an Air Network Working Group and the associated negotiating structure.

In regard to the negotiating structure in the field colleagues will note that where a flight is to be ceased the agreement creates, event specific Regional/Local Catchment Area Working Groups to ensure that all affected parties are fully represented while proposals are progressed. Crucially we have ensured that any replacement road services will be proper to the Area Distribution function and duties will be designed, planned and operated in line with the terms of the Professional Drivers Agreement (PDA) and Future of Area Distribution agreements. In particular the commitment to use PDA planning values is a major safeguard which should assist us in assuring that any replacement road service proposals are robust and achievable.

Of immediate concern is the proposal to cease a return flight between Exeter Airport and Stansted Air Hub. This proposal is at an advanced stage with the business targeting February 2015 for the flight cessation. The engagement processes within the Joint Statement will now be utilised in discussions on the Exeter-Stansted proposal.

Branches are asked to bring the joint statement to the attention of our Air Hub Representatives and our members employed in Air Hubs.

Any enquiries in relation to this LTB should be addressed to Terry Pullinger, Assistant Secretary, e-mail: dwyatt@cwu.org or shayman@cwu.org quoting reference number 211.08.

Yours sincerely



Terry Pullinger
Assistant Secretary



JOINT STATEMENT BETWEEN RM LOGISTICS AND CWU ON THE
REVISION OF AIR NETWORK SERVICES


INTRODUCTION

The Agenda for Growth agreement commits both Royal Mail and the CWU to working together to transform business operations, building on the mutual interest processes developed through the Business Transformation Agreement 2010. Throughout the period of the BT 2010 agreement both parties worked to develop and establish improved, constructive working relationships, effective interfaces and the continued development of a mutual interest culture at all levels within RM Logistics.

BACKGROUND

In line with the above principles both parties recognise the pressures of the increasingly competitive and rapidly evolving business environment that we operate in, and are committed to ensuring that our operational Networks remain in the best possible position to meet both internal workplan requirements, excellent quality of service, the needs of both the internal and external markets and the capacity for new products and services consistent with our growth agenda.

Building on the processes jointly developed to progress National Network revisions, there is now an opportunity to review commercial efficiency in the current Air Network. In particular Royal Mail Logistics believes that with regard to the delivery of mid to long distance mail products, which are presently carried by air, opportunities exist to review current services against an alternative primarily road based transport infrastructure.

Against this backdrop Royal Mail Logistics and the CWU agree that we have a collective interest in reviewing the current Air Network to assess opportunities for alternative solutions, which meet current quality of service and environmental obligations and deliver commercial efficiencies, while maintaining job security and excellent earning opportunities for employees in the Air Network.

The review will be conducted in line with the tried and tested processes contained within the Engagement, Deployment and Planning section of the Business Transformation 2010 agreement. In line with this agreement a specific joint Air Network Working Group will be created to review the Air Network proposals.

Royal Mail Logistics commits to share with the Air Network Working group (ANWG) all information which is influencing its thinking on potential changes and will involve the ANWG in all analysis, information gathering and project evolution activity. This will allow for a better understanding of the direction of the project which, in turn, will enable a more informed exchange of views, consultation and, at the appropriate time, negotiation. The full value of CWU operational experience should be taken into account and Royal Mail Logistics will afford the CWU every opportunity to input and influence project development prior to the business finalising any decision and the start of negotiations. Commercially sensitive information given to the CWU representatives will not be shared with employees or third parties.

Both parties recognise that if the review is to be progressed in a timely manner activity will have to be undertaken at pace and will require a positive and pragmatic approach. It is also recognised that all current National agreements will apply and equally MTSF current terms, if required, will apply for the full duration of this review. Against that backdrop the following process has been developed:

THE PROCESS

Air Network Working Group (ANWG)

Royal Mail Logistics will provide the ANWG with a full overview of the rationale and strategic goals behind the Air Network proposals. While the anticipation is that replacement road services will predominately be performed in vehicles under 3.5t, both parties accept that all proposed road services will be proper to the Area Distribution function, prioritised into full-time duties and designed, planned and managed to professional standards as defined in all national agreements appropriate to the Area Distribution Function, including the Professional Drivers (PDA) and future of Area Distribution agreements.

Following this overview, any flight cessation/replacement proposal will be shared with the Air Network Working Group (ANWG) for review and input. This will include full details of the following:

Potential impact on current Air Hub operations.
Potential impact on Mail Centre and Mail Centre/ Air hub Hybrid Duties
Potential impact on current National or Area Distribution Networks.
Proposed new driving workload
Full information on workplan impact and arrival times

The CWU will be given full opportunity to influence and shape any final proposal or where necessary propose an alternative solution. Consultation on each individual proposal will be progressed at pace and will involve input from all respective parties from all affected areas, and the ANWG will then make a representation to the National Logistics Steering Group (NLSG) regarding the status of issues. Where a recommendation to progress an initiative is endorsed by the NLSG a deployment date will be targeted. It is anticipated that the deployment date will allow sufficient time to allow local negotiations and resourcing processes/duty selection to conclude prior to deployment whilst recognising the notice period required for commercial contracts with suppliers of air services

Regional/Local Discussions

Royal Mail Logistics and the CWU recognise that where a flight cessation is considered discussions on the creation of potential replacement road networks may cross more than one Regional/Divisional negotiating area. Given this the joint ANWG will continue to oversee the project and coordinate discussions in the field.

Where the NLSG endorses a proposed change to the current Air Network, full proposals will be shared with the appropriate Divisional Representatives prior to local consultation on all aspects of the change. This will include proposals for the progression of operational changes at existing Air Hubs and the creation of replacement road services.

Catchment Working Groups (CWG’s) will be established for each of the catchment areas/functions affected. The make up and purpose of the group will be jointly agreed. The Working Groups will be made up of Divisional/Area and local CWU representatives where any Air Network changes impact, along with local and geographic based managers.

The role of the CWU representatives within these processes is fully recognised, as is the requirement for appropriate release in order for them to meaningfully prepare, participate and obtain the views of their members. It is agreed that in line with the IR Framework, CWU representatives undertaking this work will not suffer financial loss. To this end it is agreed that local managers will facilitate this release and that all reasonable requests for release will be agreed.

The Catchment Working Groups will oversee local discussions on proposals at unit level ensuring that all proposals are progressed in line with the IR Framework and concluded at the same pace.. Regional Logistics Directors and Divisional Representatives will review progress and coordinate discussions and ensure the consistent deployment in all sites within their areas of responsibilities and will periodically report back to the Air Network Working Group. The ANWG will be available to assist where requested.

All discussions will be conducted in line with all appropriate national agreements including MTSF and the PDA.

Exeter – Stansted – Exeter Flight Cessation

Following extensive discussions at the NLSG the first proposal for a flight cessation considered under the above process has been endorsed for progression with a proposed deployment in February 2015.
The cessation of the return flight between Exeter and Stansted will entail operational changes at the Stansted and Exeter Air Hubs, the cessation of some current Area Distribution services, the creation of a cross docking operation at Swindon Mail Centre and the introduction of a network of replacement road services.
Formal discussions on these proposals should now take place in line with the terms of the above agreed process.
Any issues of concern regarding the interpretation and/or the application of this statement issue should be referred to the Air Network Working Group (ANWG) for assistance.



.


Euan McMurdo Terry Pullinger
Logistics Director Assistant Secretary
Royal Mail CWU

Date: 24 November 2014

[clashcityrocker]

The creation of an Air Network Working Group (ANWG)

From the sublime to the ridiculous ........