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Andy Urges Cook – Restart Negotiations

 

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Andy Urges Cook – Restart Negotiations

 

Alan Cook, Managing Director, Post Office Ltd

The CWU today urged Post Office Ltd to re-enter negotiations to reach an agreement over pay and the crown office network.

 

In a letter to Alan Cook, which has also been sent to CWU members working in POL, Andy Furey laid out the position of the CWU, making it clear that whilst the CWU were prepared to accept changes to the size of the Crown Office Network, negotiators were not willing to accept a cut to members pay and terms & conditions as part of the deal .

 

 

Andy’s letter, which is reproduced in full below stated:

 

“Dear Alan

 

Future of the Crown Office network negotiations

 

I feel that it is necessary to write to you expressing my disappointment at the way negotiations ended last week. I would like to re-iterate the determination of the CWU to reach an all embracing agreement which delivers a sustainable network of flagship Crown Offices. For the avoidance of doubt the CWU see both the network and pay as being inextricably linked and clearly an agreement of this magnitude would need to include overall improvements to pensionable pay, terms and conditions.

 

The CWU genuinely want the Crown Office network to be a success and we are willing to work jointly with you to achieve this objective. For this to become a reality POL must accept that our members deserve meaningful reward for their ongoing commitment. Therefore any changes to the network must not be accompanied by a detriment to our members’ terms and conditions. Unfortunately your negotiating team adopted a position last week whereby an agreement was only possible at the expense of the majority of our members’ pensionable pay, terms and conditions.

 

I note that POL has decided to embark upon a strategic review of the business plan and I would expect the CWU’s vision for a long term sustainable Crown Office network coupled with job security to feature highly in your deliberations. Specifically, POL needs to fully recognise in a tangible way the qualitative value of its workforce. In essence this means decent pensionable pay rises for all and under no circumstances should there be any losers in relation to pensionable earnings going forward.  This position has been consistently represented by the CWU to your team throughout the negotiations.

 

Whilst fully accepting the pressures on you to bring the Crown Office network back to profit by 2011, it is nevertheless fair to say that no other comparable Post Office network in the world operates on the basis of consistent profitability.  In view of this, I find it deeply disturbing that the business appears to have an appetite to place the burden of cost reductions on CWU represented grades, who are, as you are aware, the lowest paid members of staff in the company. It is on this basis that the inadequate pay offer made last week is totally unacceptable to the CWU.

 

Indeed, the pay offer last week was significantly inferior to our previous discussions.  Specifically, your negotiating team had indicated that they could ‘match our aspirations’ and deliver a Shorter Working Week for our members in the provinces by reducing the working week from 36 hours to 35, thus harmonising working hours with London colleagues.  Additionally, your team had agreed to ‘match our aspirations’ for parity of London Weighting allowances with Royal Mail colleagues.  These are important issues to our members and it is particularly frustrating that your negotiating team has taken a retrograde step as previously progress had been made on these key issues.

 

Accordingly, our claim is for a pay increase for all CWU represented grades in excess of the current rate of inflation (RPI). This currently stands at 4.6%. Additionally, I have a strong aspiration to conclude a multiple year pay deal. I fervently believe this approach to be both logical and beneficial in relation to stability and the delivery of your Forward: Five2Eleven business plan

 

It is necessary to point out that following the Governments announcement on 14th December 2006 and the recommencement of our negotiations on 15th January 2007 we jointly established ‘What would success look like’ in terms of an agreement. A key theme was an agreement had to be ‘a good deal for both parties’. From the CWU’s perspective the current offer from POL falls well short of meeting this ‘success’ criterion.

 

A further key theme in ‘What would success look like’ was the necessity for ‘employees to support the deal’. I strongly contend that our members would overwhelmingly oppose what effectively constitutes in real terms a cut in pensionable pay.  Furthermore, your proposals to suppress pensionable pay would have a negative impact on the value of redundancy/pension payments received as a result of MTSF.  Obviously my members would not be prepared to accept this inferior position.

 

Continuing with the theme of ‘What would success look like’ was the objective to improve Have Your Say (HYS) results in relation to employees feeling valued. I am sure you will agree that the ongoing HYS results leave much to be desired. Specifically, the most recent data from February 2007 in respect of the question; ‘I feel this company values me’ had a score of only 22% down 2% on the year to date figure of 24%.

 

Astonishingly both these figures represent a further fall in the level of employee satisfaction compared to the previous year. It is also irrefutable that these figures continue to be the worst within the Royal Mail Group with no indication of future improvement. As somebody whom, I know, places great importance on people feeling valued within the business, these figures must come as an acute embarrassment to you.

 

In view of the above, it is not a credible position for the business to propose what is, in effect, a pay cut in real terms coupled with the cessation of Saturday Premium Allowances for Deputy Branch Managers, Postal Officers and Retail Assistants, which is approximately 80% of staff working in Crown Offices.

 

I understand, in line with the recent DTI consultation document, that you are seeking major franchise agreements with well established high street retailers. It is the CWU’s opinion if this comes to fruition without a collective agreement on all the measures that impact on your employees then litigation to enforce Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) is inevitable.  Accordingly, all employees affected would in actual fact be subject to TUPE.  Clearly the franchising of Crown Offices constitutes a relevant transfer and in these circumstances POL and any franchisees would be under obligation to adhere to these regulations and consult formally with the CWU. 

 

Bearing in mind that we have been advised by your negotiating team that negotiations with your commercial partners are at an advanced stage, I would be grateful if you could give me some firm indication as to when you and your franchise partners intend to embark upon formal consultation with the CWU.

 

The CWU has consistently demonstrated during negotiations that we are prepared to adopt a modern and progressive approach on many of the fundamentals contained within your business plan in order to rebuild our industry. However, we are not able to support a business plan that implicitly contains an erosion of pensionable pay rates and the cessation of Saturday Premium Allowances.  POL’s position in this respect is untenable. I must be absolutely clear that our members expect POL to reach a comprehensive agreement with the CWU. Furthermore, any un-agreed changes in respect of franchising or closures would be completely unacceptable and would be met with an appropriate response.

 

In view of the above, I wish to take this opportunity to seek your continued agreement to the moratorium on Crown Office closures and franchising. I would also like to understand the timescales involved in POL’s strategic review of the business plan.

 

The CWU are obviously willing and available to re-engage with your negotiating team at short notice in order to seek a timely resolution to all of these issues and in order to reach a collective agreement that our members can support.

 

Finally, in view of the serious situation, I am publishing this letter to our members.  In the meantime, please do not hesitate to contact me should you wish to discuss any of the above.

 

I look forward to an early and favourable response.

 

Yours Sincerely

 

ANDY FUREY

Assistant Secretary

Report 29th March 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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