LTB 341/16 - The Future of Quadrant - Update on the Royal Mail and CWU Joint Development of a Vision for Catering Services within Royal Mail

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LTB 341/16 - The Future of Quadrant - Update on the Royal Mail and CWU Joint Development of a Vision for Catering Services within Royal Mail

No. 341/2016

31st May 2016

For the Immediate Attention of All:

Postal Branches with Quadrant Members

Divisional Representatives



THE FUTURE OF QUADRANT

UPDATE ON THE ROYAL MAIL AND CWU JOINT DEVELOPMENT OF A VISION FOR CATERING SERVICES WITHIN ROYAL MAIL

Dear Colleagues

Branches will be aware that the future of Quadrant as the provider of Catering Services to our members in Royal Mail Group has been the subject of review by the business, which has led to a prolonged period of uncertainty for our Quadrant members.

The Quadrant contract was due for renewal in September 2013 and indications at the time were that Royal Mail had little enthusiasm for renewing or extending the contract and intended to go out to tender. As a result of sustained representations from the CWU the company reconsidered its position and extended the contract but for only 6 months.

Discussions continued through 2014 resulting in an agreed Terms of Reference for a Joint Review of Catering Services. That review has been conducted against the backdrop of reviewing the Quadrant contract, with recognition that providing catering, vending, and/or self messing facilities is seen as a valued contribution towards the wellbeing of Royal Mail Group employees and an important part of the overall employment package.

The aims of the review were to improve and sustain the long-term provision of catering facilities provided exclusively by Quadrant to the employees of Royal Mail and provide a stable platform on which to develop and market products and services in a way that encourages confidence and growth, without the necessity for repeated site reviews to respond to a continuing decline in takings.

The department is pleased to be able to inform Branches that we have now concluded that review which has culminated with a new 5 year contract for Quadrant, providing far greater stability and security for our members.

Following the commencement of the joint review activity Branches will be aware that the CWU electoral process resulted in Terry Pullinger assuming the role of DGS(P) and my own election as Assistant Secretary with responsibility for Quadrant. However, given that negotiations with Royal Mail had commenced during Terry’s tenure as Assistant Secretary and were nearing conclusion at the time of the changeover it was deemed pertinent by all parties that in order to ensure continuity Terry should complete those discussions.

The joint review activity to date has resulted in the attached agreed document, Update on the Royal Mail and CWU Joint Development of a Vision for Catering Services within Royal Mail.

Branches will note that Royal Mail has now agreed a new five year contract with Compass (the parent company of Quadrant) which was effective from 1st October 2015. The terms of the contract differ from previous arrangements and the contract will be subject to review in years 4 and 5. The cost of provision for catering has also been moved out of regional Royal Mail operational budgets and into a central budget. This will provide our Quadrant members with far greater stability and security for the immediate future, something which we are sure will be welcomed following the prolonged period of uncertainty they have experienced.

In addition it should be recognised that a great deal of joint activity has taken place with Royal Mail to ascertain what it is that our members want from the provision of catering facilities and how the current options provided may be improved going forward. The data gathered has been of great assistance in our discussions and we would like to thank everyone who participated in the survey that took place.

The business is investing in canteen facilities at a number of sites to make them more appealing and user friendly for our members, which we are sure will be welcomed. Commitments have also been secured to further activity in regard to vending options, development of attractive and diverse menu options and the provision of local menus.

Equally, a tripartite arrangement has been agreed that will allow for far more transparent discussions on relevant issues. This ongoing progress will be jointly monitored through the establishment of a new Catering Forum. The Catering Forum will meet at least quarterly and will include representatives from the CWU, Quadrant and Royal Mail. While the commitment and principle currently exists to inaugurate the Catering Forum, discussions are continuing in relation to a Terms of Reference to support the activity.

The department believes that the attached document provides a genuine platform for the Union and Royal Mail to continue working together and with Quadrant, to develop a renewed approach to the provision of catering facilities for our members.

Branches should note however that while the suspension of the ‘Use it or Lose It’ process for two years will afford our Quadrant members some respite and also provide a genuine opportunity to focus on achieving growth, it must also be recognised that the situation in regard to catering provision remains very challenging. It is therefore vitally important that our members continue to be encouraged to support the catering facilities that are available and would request that every effort is made by Branches and representatives to convey this message at every opportunity.

Branches and representatives are requested to ensure that our Royal Mail and Quadrant members are made aware of this LTB and the attached update at the earliest opportunity.

Any enquiries in relation to this LTB should be addressed to Davie Robertson, Assistant Secretary, email: dwyatt@cwu.org or shayman@cwu.org quoting reference number: 311.02.

Yours sincerely,

Davie Robertson

Assistant Secretary