LTB 399/16 - Post Office: The Future of Supply Chain - Avoiding Compulsory Redundancies - Unagreed Preference Exercise

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LTB 399/16 - Post Office: The Future of Supply Chain - Avoiding Compulsory Redundancies - Unagreed Preference Exercise

No. 399/2016

1st July 2016

POST OFFICE: THE FUTURE OF SUPPLY CHAIN – AVOIDING COMPULSORY REDUNDANCIES - UNAGREED PREFERENCE EXERCISE

Dear Colleagues

The Post Office has issued an unagreed preference exercise to our Supply Chain members despite the Union’s offer to continue negotiations to find a mutually agreeable way forward in relation to the proposals to exit the external market leading to the reduction of 515 CWU grade jobs in Supply Chain. The forms are likely to arrive at members’ home addresses tomorrow.

This unilateral action flies totally in the face of the spirit of working together to find acceptable solutions to the serious situation facing our members. The Post Office communication in regard to the preference exercise and a set of Post Office Q&As are attached to this LTB for your information.

In light of this development and in line with the Union’s policy on Compulsory Redundancies and our objective to reach an overarching agreement in line with Emergency Motion E3, I have today written to Alisdair Cameron, Chief Financial Officer to outline my concerns regarding the prevailing situation and to highlight the demands of members which are as follows:

1) a firm and unequivocal commitment from the Post Office there will be no "Compulsory Redundancies" arising from the decision to exit the external market.

2) the Post Office offers real hope and certainty for the future that they are serious about retaining the internal operation in house by providing a guarantee there will be no outsourcing of the internal work for a 5 year period from the 1st April 2017.

My letter to Alisdair Cameron is also attached to this LTB for your information.

The Post Office has offered a “transition payment” of £3,000 in addition to the standard MTSF VR terms to all members working in Supply Chain “in recognition of a joint commitment for ensuring customer service is effectively maintained throughout the implementation of the changes required to create a successful and commercially sustainable Supply Chain business in Post Office and CWU cooperation to these ends”. Whilst acknowledging that this offer is a step in the right direction, this payment falls short of our aspirations and does nothing whatsoever to avoid the unwelcome prospect of Compulsory Redundancies. An email from John Whitefoot, Head of Industrial Relations outlining the without prejudice offer dated 27th June and my associated response via letter to John Whitefoot dated 29th June are also attached to this LTB.

As a consequence of the Post Office’s decision to press ahead with the preference exercise, we are encouraging members not to complete the preference form. This is because the greater the appetite for redundancy amongst the membership, the less pressure there is on the Post Office to enhance the redundancy package which is required to help avoid Compulsory Redundancies. I have written to members’ home addresses today (letter attached) to explain the rationale behind this strategy.

Branches and Representatives are urged to contact all members working in Supply Chain to encourage them to boycott the preference exercise and strengthen our hand in negotiations.

Further developments will be reported.

Yours sincerely

Andy Furey

Assistant Secretary