POL: SEPARATION JOINT STATEMENT

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Dear Colleague,

POL: GOVERNMENT DECISION TO SEPARATE POST OFFICE LTD FROM ROYAL MAIL - JOINT STATEMENT

Further to LTB 041/12, dated 24th January 2012, we would like to update Branches on our discussions with Royal Mail Group (RMG) and Post Office Ltd (POL) with regards to the government’s decision to separate POL from RMG, and the potential implications for our members.

Background

The Postal Services Act 2011 contained confirmation of the government’s decision that Post Office Ltd will move from being an integral part of the Royal Mail Group to being a sister company to Royal Mail and a subsidiary of the parent company Royal Mail Holdings. POL will remain in public ownership. Operational separation has already occurred, with a new, independent Post Office Board being established recently. Alice Perkins was appointed as Chairman, and Neil McCausland as Senior Independent Director.

Members who work in the Post Office operation will transfer employment from Royal Mail Group Ltd to being employed directly by Post Office Ltd. This change of employer will take place under TUPE regulations (2006). Statutory TUPE consultation will apply ahead of the transfer and employees will formally transfer across to Post Office Limited, following TUPE consultation. The transfer is expected to take place on 1st April 2012, subject to European Union State Aid approval with regards to the Royal Mail Pension Plan deficit.

As Branches are aware, discussions have been taking place on this subject with RMG and POL since the latter part of 2011, and have continued into 2012 on a regular basis. To this end, a joint statement, entitled “The Government decision to separate Post Office Ltd and Royal Mail”, has been agreed between POL, RMG, CWU and Unite, which is attached to this LTB for your information. Also attached is an agreed set of Q&As in relation to this subject. Branches are urged to share both the joint statement and Q&As with members.

The joint statement has been issued to reassure members that we are working with Royal Mail Group and POL to ensure the transfer under TUPE will be as seamless and straightforward as possible. Importantly, members’ terms and conditions, as determined by current collective agreements and policies, will be protected and transferred to the new employer (POL). So in essence, we are endeavouring to ensure that our members will see absolutely no changes to any terms or conditions at the point of employment transferring to POL.



Letter from Simon Haben – Director, HR Strategy, Policy & Engagement, RMG

The Union has received a letter from Simon Haben, Director; HR Strategy, Policy & Engagement, RMG, which is also attached to this LTB for your information. This letter complements the joint statement in that it confirms some of the key issues with regards to the transfer. In particular, Simon confirms the following:

• The transfer will affect approximately 7750 employees of Royal Mail. They will transfer to Post Office under TUPE on their current terms of employment. Their period of continuous employment will be preserved.

• The transfer will not affect the transferring employees’ eligibility for membership of or the benefits they have built up in either the Royal Mail Pension Plan or the Royal Mail Defined Contribution Plan.

• The collective agreements currently in place that apply to transferring employees will continue to apply on the transfer.

• Post Office policies, procedures and process will apply to all transferring employees from the date of transfer.

Next Steps

Regular meetings have been scheduled for the next few weeks to ensure a smooth transition, and further information will be provided in due course.

Any enquiries in relation to this LTB should be directed to Claire Bowers, cbowers@cwu.org or 020 8971 7361.

Yours sincerely


Dave Ward Andy Furey
Deputy General Secretary (P) Assistant Secretary

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Joint communication from Royal Mail, Post Office Ltd, Communication Workers Union and Unite

The Government decision to separate Post Office Ltd and Royal Mail

The Postal Service Act, approved by Parliament in June 2011, confirmed the government’s decision to separate Post Office Ltd from Royal Mail Group, with Post Office remaining in public ownership.

Following European Union approval of State Aid to enable the current Royal Mail Pension Plan (RMPP) deficit to be resolved, Royal Mail Group will transfer the employment contract of all employees who work in the Post Office operation directly to Post Office Ltd. We currently anticipate this will happen from the start of the new financial year, in April 2012.

This change of employer will be managed according to Transfer of Undertakings (Protection of Employment) Regulations 2006, or TUPE for short. In essence, this means contracts of employment will then be with Post Office Ltd, rather than Royal Mail Group. Reassuringly, as part of this transfer, there will be no change to contractual terms and conditions of employment, including membership of the Pension Schemes. In this regard, a special edition of Pension News will be issued in February giving more details about what it means for members of the Royal Mail Pension Plan (RMPP).

Crucially, Post Office Ltd. also guarantees that all current Collective Agreements and Post Office people policies in place with Unite and the CWU will be protected and transferred.
Post Office Ltd will continue to maintain a very strong relationship with Royal Mail, underpinned by the Mails Distribution Agreement signed in January 2012. The ten year agreement was negotiated between Royal Mail and Post Office, reflecting the continuing long term commitment between the two businesses.
In line with government policy, Post Office Ltd, in September 2011, strengthened the Board with Alice Perkins appointed as Chairman, and Neil McCausland as Senior Independent Director. Further non-executive appointments will be made in due course. The purpose of this new Board is to ensure that Post Office Ltd benefits from increased levels of oversight and challenge as it moves towards being a separate company from Royal Mail Group in the coming months.

Royal Mail Group and Post Office Ltd, working collaboratively with the CWU and Unite, will continue to consult about the transfer and what this means for employees, with a view to reaching agreement on how best to manage this change. To this end, there will be a series of joint communications over the next couple of months that address the points that are important to you.
Looking forward to the new financial year, this is the beginning of a new chapter in the Post Office Story, a three year plan of investment, (with no reduction in the size of the Network), growth and innovation as the Post Office plans to become an independent company.
Overall, all parties expect the TUPE transfer to be straightforward and as seamless as possible whilst meeting all legal requirements.
Matthew Starks Simon Haben Andy Furey Brian Scott
Head of Employee Director, HR Strategy, Assistant Secretary, Assistant National
Relations, Policy and Engagement, Communication

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TUPE Q&A
What happens to me when the Post Office separates from Royal Mail Group Ltd?

At the moment we are all employed by Royal Mail Group Ltd to work for the Post Office. When Post Office separates from Royal Mail Group Ltd, we will become employed directly by Post Office Ltd. This change in your employer will occur as a result of the operation of the Transfer of Undertakings (Protection of Employment) Regulations 2006, or TUPE for short. Our contracts of employment will transfer to be with Post Office Ltd, rather than Royal Mail Group Ltd.

What is TUPE?

TUPE stands for the Transfer of Undertakings (Protection of Employment) Regulations 2006. It is the law governing the transfer of employees in connection with the sale of any business or a service provision change. The application of TUPE means that the rights and liabilities of one employer in respect of its employees under their contracts of employment transfer to another employer. This means that:
(a) Employees employed by Royal Mail but who work for Post Office will TUPE transfer automatically and become legally employed by Post Office from the time of the transfer. These employees will transfer on the same terms and conditions as they enjoyed immediately before the transfer.
(b) Relevant collective agreements between Royal Mail and Unite and CWU relating to the employees who transfer will also transfer with employees to Post Office.

When will this happen?

Our current understanding is that the transfer will take place on 1st April 2012 provided that State Aid in relation to the pension solution has been received from the European Commission. The exact date will be confirmed nearer the time.

Will I need to do anything in order to transfer?

No. When Post Office separates from Royal Mail Group Ltd your employment will automatically transfer from Royal Mail Group Ltd to Post Office Ltd. You will receive a letter at your home address confirming this change. There won’t be a new contract as your current contract transfers across with you.

Does this mean my terms and conditions of employment will change?

No. Your current contractual terms and conditions and the collective agreements in place with unions that apply to you will stay the same on transfer. All current Post Office HR policies and procedures will apply to everyone who is employed by Post Office Ltd,
For the small number of individuals who are currently on Royal Mail Group Payroll, you will move to Post Office Ltd payroll from the date of transfer which means you will have a new payroll number, but your pay date remains the same. Post Office Policies and Procedures will also apply to you from the date you transfer to Post Office Ltd.
Ideally Post Office Ltd would like to locate teams together, so this may mean moving to work from a different office. If you are affected by relocation Post Office Ltd will talk to you about your individual situation at the relevant time.

How is my pension affected by the transfer?

The TUPE transfer will not affect your eligibility for membership of the Royal Mail Pension Plan (RMPP) nor the Royal Mail Defined Contribution Plan, neither will it affect the pension benefits you have built up in these pension plans. You will continue to build up benefits in the pension plan you are a member of, in accordance with the relevant plan rules. If you are a Waiting Period member of the Royal Mail Defined Contribution Plan, you will continue to be eligible to contribute to it once you have completed one year of service and are over 18 years old.
The Postal Services Act 2011 makes provision for Post Office members of the RMPP to continue their membership of the RMPP in a newly-created section of the RMPP. The creation of the new section will not change the RMPP benefits of Post Office employees and assets and liabilities in respect of Post Office section members will be recorded separately from assets and liabilities in respect of other members of the RMPP.
The intention is that the POL section, as with the rest of the RMPP, will be fully funded as at the effective date, with the Government assuming responsibility for the liabilities accrued up to that date within the RMPP (for both Post Office employees as well as Royal Mail employees).
RMPP member benefits will not be adversely affected by the establishment of the Post Office section and members will continue to receive information about the RMPP from
the Trustee. There will be further communication from the Trustee explaining the changes to the structure of the RMPP pension scheme in more detail.

Will our current operational business policies and processes work in the same way as now?

Some of our operational business policies and processes may need to be varied. This may mean that the people you currently contact for information or as part of an authorisation process and some of our systems will change for example. The changes will happen over the next few years and we will talk to you in advance about any changes and provide training where necessary.

Will you be consulting with the unions?

Yes. Royal Mail Group Ltd and Post Office Ltd. will consult the unions about the transfer of employees from RMG to POL. We have had and plan to hold regular meetings with both Unite and the CWU,
What if I don’t want to transfer?
If your contract of employment is due to transfer, you have the right to object by putting it in writing and sending your objection to Natalie Wilkins at 1st Floor Central Wing, 148 Old Street, London EC1V 9HQ before the transfer. In the event that you object to the transfer in this way, you will be taken to have resigned from employment as from the transfer date. In these circumstances you will be treated as if you would have left the business voluntarily and you will only receive payment up until the date of transfer.

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Simon Haben Letter.

Transfer.pdf

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TO: ALL BRANCHES WITH POSTAL MEMBERS


POL: SEPARATION FROM ROYAL MAIL GROUP, TUPE AND PENSIONS: NATIONAL BRIEFING OF CViT REPRESENTATIVES

The Postal Services Act, approved by Parliament in June 2011, confirmed the government’s decision to separate Post Office Ltd from Royal Mail Group, with Post Office Ltd remaining in public ownership.

LTB 123/12, dated 22nd February, details discussions which have been taking place with both RMG and POL, since the latter part of 2011, on this subject. It also contains a joint statement entitled: “The Government decision to separate Post Office Ltd and Royal Mail” and includes Q&As. It is important that our representatives read this LTB to understand the issues.

To further help inform our representatives, we have organised a briefing for all CVIT representatives, with POL in attendance, to provide more information with regards to the separation of POL from RMG, and the implications for our members.

The briefing will initially include a presentation from Post Office Limited, from Matthew Starks, Head of Employee Relations, and Martin Lacey, Pensions Manager. Following the presentation, representatives will be invited to pose questions to POL management.

The briefing will take place on:

Thursday 8th March
Room 2, CWU Headquarters
11:30am – 2:30pm

The following representatives are invited to the briefing:

 CViT Unit Representatives

 Area Distribution Representatives with responsibility for CViT

 1 Divisional Representative per Division

 Branch Secretaries with CViT members


It is absolutely vital that all local CViT representatives make the effort to attend as they will need to understand the key issues arising from separation when dealing with enquiries from members. To assist this, travel expenses for POL employed representatives (CViT Unit Representatives) will be paid for by POL – arrangements should be made via the Depot Manager who will facilitate this. Please ensure you book early to obtain the cheapest fare.



For ease of entry into CWU Headquarters, I would appreciate it if confirmation of the names of the representatives attending the briefing can be sent to Claire Bowers at cbowers@cwu.org as soon as possible. This will ensure smooth running prior to the meeting when booking in at Reception.

Yours sincerely


Andy Furey
Assistant Secretary

[Running Man]

What a load of complete and utter nonsense!!!

Back in 1986 a split just like this was thought to be 'the way forward' for Royal Mail Group and it was plagued with problems from day one. On the counter, there were ridiculous conversations like "oh that's Royal Mail- they're NOTHING to do with us!" to give a very basic example. Another waste of time was all the penny pinching and petty squabbling between the two companies when nobody was able to decide who should pay for biscuits at 'inter-business' meetings. This arrangement continued until some years later (I forget when exactly), somebody decided that 'the way forward' was to bring all businesses, including Parcelforce, back together. The shouts of "I told you so" could be heard from Land's End to John O' Groats!

The wheel went full circle and appears to be going full circle once more.

Will anybody notice? Will anybody care?? Will it make POL more profitable???

Given the current leadership of POL, together with some inept assistance from their senior colleagues in Royal Mail, I think we all know the answer.

[subbie]

There seems to be supreme confidence that Europe will sanction the State Aid notification request on the Pension deficit.

Subbie

[subbie]

I should have added.....I didn't know the separation depended on the State Aid approval.

subbie