Difference between old and new contracts in detail

[pm55]

Hi everyone, I'm looking for some help understanding the difference in pay between the standard (pre December 2022) and new inferior (post December 2022) contracts. I've done some calculations but only have access to my own inferior contract so I could be off. Any help would be appreciated.

(All numbers in brackets for London weighting)

**Standard contract pre Dec 2022:**

£15.04/h including delivery supplement (inner London weighting at 1.186x normal rate)(£17.84/h)

25: £376 (£445.94) x 52 = £19,552 (£23,188.67) – 100 minutes paid break per week

30: £451.20 (£535.12) x 52 = £23,462.40 (£27,826.40) - 150 minutes paid break p/w

37: £556.48 (£659.985) x 52 = £28,936.96 (£34,319.23) - 180 minutes paid break p/w

40: £601.60 (£713.50) x 52 = £31,283.20 (£37,101.87) - 200 minutes paid break p/w




This is how paid meal relief is done:

PAID MEAL RELIEF:



2 hours 30 – 3 hours: 10 minutes

3 hours 01 – 3 hours 30: 15 minutes

3 hours 31 – 4 hours 59: 20 minutes

5 hours – 7 hours: 30 minutes

7 hours 01 – 8 hours 59: 40 minutes

9 hours – 10 hours 59: 50 minutes

11 hours – 12 hours 59: 60 minutes

13 hours or longer: 70 minutes

Enhanced Sunday rate: ~£1/extra (not included in totals but amounts to £250-£1000/year)(Not 100% certain on this but think it's around £1)

I don’t have the exact details of the standard contracts overtime rates, I’d appreciate if someone could post them and the exact Sunday rates so we can have a clear picture of the discrepancy.





**New inferior post Dec 2022:** £13.06/h (£15.49)

25: £326.50 (£387) x 52 = £16,978 (£20,136)

30: £391.80 (£465) x 52 = £20,374 (£24,162)

37: £483.22 (£573) x 52 = £25,127 (£29,801)

40: £522.40 (£619) x 52 = £27,165 (£32,217)



Overtime above 40 hours: £13.06 x 1.25 = £16.325/h

50: £686

60: £849

70: £1012



For reference, standard contract working a 37 hour week with 3 hours of paid breaks = £556.48 (£659.98)

New inferior contract working 42 hours with ZERO paid breaks = £555.05 (£658.29) (8 hours of work extra a week for the same pay)

If the new entrant takes a 20 minute unpaid break everyday over 5 days, that’s an extra 1 hour 40 minutes unpaid time at work which makes the time spent at work 43 hours 40 to make the same amount as someone who spent 37 hours at work, 3 hours of them a paid break.

8 hours a week x 52 = 416 hours / 37 is 11.24 weeks that you work for free compared to the standard contract to make the same amount.

37 hours a week = £3809 (£4517) difference in base pay, 156 hours paid breaks over 52 weeks is £2346 (£2782) for a total of £6155 (£7300) / 13.06 = 471.30 hours at the new base rate = about 2.9 months extra per year you must work to match the standard contracts since 160.33 hours a month is a 37 hour week.

So the difference in full time at 37 hours is £6155 (£7300) per year (not including sunday rates) and you have to work 416 hours more per year for the privilage, as well as spending ~80 hours extra at work if you take 20 minutes of unpaid breaks five days a week for 50 weeks to make the same wage.

On top of this, all new entrants MUST be drivers. There around around 8400 non drivers on the standard contract, hired during a time when driving was not a contractual requirement. ALL 8400 of these NON DRIVERS get PAID BREAKS, while all new entrants who MUST drive get ZERO paid breaks.

The new inferior contracts also state that working time can be anywhere between 6am to 10pm, 7 days a week. The standard contracts are NOT required to do late packet shifts, 2pm- 7pm and during Christmas peak even 3pm to 9pm. The standard contact is NOT required to work Sundays, but the new inferior contracts are. The new inferior contracts are paid BASIC rate on Sunday, whereas the standard contract if they choose to work Sunday, get a ~£1 extra per hour Sunday rate.



If I’ve made any mistakes I’m happy to correct them. There is too much confusion and uncertainty amongst new and old staff so my plan is to create easy to view images of each pay rate by hours so all 20,000+ new entrants know exactly how much less they’re being paid which will make it harder for the EP Group and CWU to hide behind the confusion.

As some of us new entrants enter a third Christmas Peak, the question becomes clear: Are all Posties on the new inferior contracts second class employees and will they always be?




edit1: fixed double counting paid breaks and adjusted numbers so paid breaks are inclusive (thanks pinstripe)
edit2: changed sunday rates

[Woody84]

The difference in those rates of pay are absolutely criminal.

Nothing against legacy folk when I say that, but the company are a pathetic joke to have a two tiered workforce like this. Crooks.

[goldy2007]

I doubt there has been a warts and all full time contract with full allowances
driving
early morning
Ics supplement
Consolidated D2D payments

Given out in over 20 years

The job isn’t going backwards

RM definition of equalisation is replacing each old timer who leaves with a new starter

[pinstripe]

“ For reference, standard contract working a 37 hour week with 3 hours of paid breaks = £601.60”

“37 hours per week: £556.48 “

You have added the paid breaks to the contracted hours, they are actually inclusive

The way you have written it, a 37 hour contract is getting paid twice for their breaks

[tramssirhc]

What's the CWU doing about it?

[Woody84]

What's the CWU doing about it?

Lol.

[pinstripe]

What's the CWU doing about it?

More than the PWRFC, unless of course, you can direct us to the relevant documentation covering their proposals that RM are considering

[goldy2007]

It’s not even legacy v new contract

There is a massive discrepancy even between old contracts and what extras they get

Someone one with 30 yrs will be better off than someone with 15 years

The dumbing down of contracts is nothing new

[eviljack]

Legacy contracts get rolling days off including the long weekend every 6 weeks.
New entrants get random days off. So random in fact that it will NEVER be a Saturday.

Also legacy contracts are paid weekly vs monthly for the poverty contracts.

[A2B]

Legacy contracts get rolling days off including the long weekend every 6 weeks.
New entrants get random days off. So random in fact that it will NEVER be a Saturday.

Also legacy contracts are paid weekly vs monthly for the poverty contracts.

All but the very new starts (I guess to see if they stay) are on a rota here. When they work Sundays they get Monday & Tuesday off

The weekly/monthly shouldn't make a difference after the first month, both have to manage their finances

[thefox]

Legacy contracts get rolling days off including the long weekend every 6 weeks.
New entrants get random days off. So random in fact that it will NEVER be a Saturday.

Also legacy contracts are paid weekly vs monthly for the poverty contracts.

Get long weekends because they are duty holders.

[thefox]

Got some guys pre 2020 that are on legacy contracts don't have a set duty so they also get random days.

[TopperGas]

We seem to have no problems recruiting new starters at our DO, whilst that remains the case there seems no real incentive on RM to pay them any more, regardless as to whether legacy staff earn more money, it seems basically if you don't like what you are being paid then RM are content for you to get another job as you'll soon be replaced. If in the future recruitment does become an issue you only then will RM look at equalising the contracts, although by then new contracts staff might outnumber legacy staff anyway.

[pm55]

“ For reference, standard contract working a 37 hour week with 3 hours of paid breaks = £601.60”

“37 hours per week: £556.48 “

You have added the paid breaks to the contracted hours, they are actually inclusive

The way you have written it, a 37 hour contract is getting paid twice for their breaks

Thanks I didn't know this. This must mean a 37 hour week on the standard contract is actually 34 hours of work with 3 hours of breaks then. I'll redo the calculations, much appreciated!

[pm55]

We seem to have no problems recruiting new starters at our DO, whilst that remains the case there seems no real incentive on RM to pay them any more, regardless as to whether legacy staff earn more money, it seems basically if you don't like what you are being paid then RM are content for you to get another job as you'll soon be replaced. If in the future recruitment does become an issue you only then will RM look at equalising the contracts, although by then new contracts staff might outnumber legacy staff anyway.

How many of those new entrants stay more than 18 months? We currently have about a 12% rate of people staying more than 18 months at my DO on the new inferior contracts. As soon as they become proficient, they leave and talking to those with more than 18 months, none of them seem very happy with their rate of pay and many are looking elsewhere.

I'm sure they have all the data about burning through new recruits, but there must be a point where retention is so poor the contracts must be improved. This is why I think it's important to have some clear images that someone new can look at, see for example "I work 25 hours, this is how much less I make per week, per month, per year, per 10 years and how many more hours I spend at work without paid breaks." When you see the numbers clearly, it really makes you question whether you want to work here or not.