RM reduces pension cap to avoid strike as CWU ballot

[TrueBlueTerrier]

Royal Mail reduces pension cap to avoid strike as CWU ballot continues

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The Royal Mail has offered its scheme members an improved deal in pension scheme negotiations as the company looks to avoid strike action before its floatation on the stock market.

The postal firm originally told members of the Royal Mail Pension Plan (RMPP) that pensionable pay increases would be limited to the retail prices index (RPI) up to 5%, regardless of actual pay rises (PP Online, 31 May).

The Communication Workers Union (CWU) "firmly rejected" the proposals and threatened strike action in response (PP Online, 11 June). Unite members also voted against the measures (PP Online, 19 August).

However, in a bid to avoid strike action ahead of the company's stock market floatation expected next month, Royal Mail has improved its offer to members.

In communications sent to members of both unions, Royal Mail has conceded to allow promotional increases to pensionable pay (and increments) to be counted as final salary pensionable pay until at least March 2018.

This contrasts to the original proposal in which pensionable pay would not increase for promotions after 1 April 2014.

However, CWU still plans to ballot its members over a national strike. It said it would not conduct negotiations via the media in hope the discussions remained private.

A CWU spokesperson added: "Pensions is one part of the issue, along with job security, pay and conditions and the strike ballot will go ahead. We obviously want to come to an agreement as it is in the best interest of everyone, but we don't have anything that covers all the issues yet."

The government has confirmed the floatation of 51% of the Royal Mail, which is expected next month. However, if union strike ballots are successful, national industrial action could take place on 23 October, the likely floatation date.

The RMPP has approximately 112,000 members and closed to new members in 2008. It also changed from a final salary scheme to career average revalued earnings (CARE).

The Royal Mail said it needed to cap pensionable pay increases in order to control the scheme's deficit. It denied any move to cap benefits was linked to its expected floatation, in a claim contested by the CWU.

[UnhappyGremlin]

It does occur to me, I wonder if these changes are primarily aimed at getting managers back on side?

This is in no way anywhere near enough to stop a strike. Pay/T&C's and strings are still a massive issue for me.

[britwrit]

From Professional Pensions....

The Royal Mail has offered its scheme members an improved deal in pension scheme negotiations as the company looks to avoid strike action before its floatation on the stock market.

The postal firm originally told members of the Royal Mail Pension Plan (RMPP) that pensionable pay increases would be limited to the retail prices index (RPI) up to 5%, regardless of actual pay rises...

http://www.professionalpensions.com/pro ... -continues