LTB CWU Response to Business Plan/ColleagueShare Announcemen

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31 March 2011

LTB 322/11 CWU Response to Royal Mail Group New Business Plan/ColleagueShare Announcement

Dear Colleague


CWU Response to Royal Mail Group New Business Plan/ColleagueShare Announcement
The purpose of this LTB is to remind Branches of their role in communicating the policy adopted by the Union as a direct response to Royal Mail's new Business Plan, its implications on existing agreements and ColleagueShare.


The full terms of the Postal Executive document is attached and the policy statement can be found at Appendix A.


All Postal Branches must ensure that local representatives are provided with a copy of the document and that the Union's policy is fully explained in meetings with the representatives. In addition, Branches should ensure that the Union's policy is communicated in the workplace. Furthermore, you should also provide the relevant managers with a copy of the Union's policy.


We will be asking CWU Divisional Representatives to oversee this process and ensure that all Postal Branches confirm their support for the policy by the end of next week.


A further update will be provided in due course.


Any ColleagueShare/general enquiries should be addressed to the DGS (P) Dept. Enquiries on the policy position within each function should be addressed to the relevant Assistant Secretary.


Yours sincerely




Dave Ward Ray Ellis
Deputy General Secretary(Postal) Assistant Secretary


Bob Gibson Terry Pullinger
Assistant Secretary Assistant Secretary


Phil Browne
Acting Assistant Secretary


COMMUNICATION WORKERS UNION


CIRCULATED TO THE DOCUMENT 'A'
POSTAL EXECUTIVE ON
28th March 2011 PE 52/2011
(For consideration at the
Special Postal Executive Meeting
On 28th March 2011)


CWU Response to Royal Mail Groups New Business Plan & Recent Announcement on Colleagueshare
Over the last few weeks some very difficult issues have emerged which taken either in isolation or together have the ability to destabilise the Business Transformation Agreement, heighten tensions over job security, destroy trust and potentially bring the Union into serious conflict with the employer.


These issues include:


- The emergence of a new business plan that downgrades the future expectations of the company.
- The impact the new plan is likely to have on existing agreements, most notably Business Transformation.
- The fact that the money our members expected from Colleagueshare appears to have been wiped out.
- Ongoing problems with deployment of Business Transformation, mostly as a result of an overestimation of what can be achieved in delivery revisions.
- Growing uncertainty of future pension entitlements.
- The announcements in London, which given the numbers involved, brings into sharp focus the potential for compulsory redundancies.


In our deliberations to determine the correct policy to respond to the employer and move the Union and our members forward, it is important that we set these issues in a wider context.


Firstly, the convergence of unfair competition, the pension deficit, modernisation and a postal market that is shrinking from the impact of the digital age - means even the most sceptical person must now recognise the challenges we all face are both very real and unprecedented.


Secondly, the Government policy to privatise Royal Mail and separate Post Office Limited, poses a real threat to the universal service and a nationwide network of Post Offices. In turn these Government policies could bring about yet more attacks on our member's jobs, terms and conditions.


Thirdly, in addition to the above, an unfavourable external environment, alongside a sense of a growing financial crisis within the company, means that more than ever job security will increasingly become our member's number one priority. We should be aware that the company are likely to undertake further communications to highlight what they see as a very difficult financial position. Furthermore, the company will make the point that industrial action or the threat of it is likely to damage the future. The Postal Executive have recently had first hand experience of the company's position in the two sessions held with the Chief Executive Moya Greene.


There is clearly a lot for us to consider and there are no easy answers or solutions. It is against the background of all the information set out in this document that we must now respond to these recent developments.
A CWU response
Not surprisingly, early indications suggest that Royal Mails announcements have seen a range of views expressed from Representatives and members, including:


- Feelings that they have effectively been robbed of money they expected and in some cases no doubt already spent.
- Anger and resentment that any remaining trust has been betrayed.
- On Colleagueshare some people are saying they always thought the scheme was a con.
- Inevitably a minority will as ever try to blame the Union.
- Some people are saying we should immediately pull out of the Agreement and others make the point that this is exactly what management want us to do and that we would be leaving ourselves in an impossible situation.
- There are those who call for a strike and those who will be worried about this prospect


In a democratic organisation, when difficult situations arise, there will always be differing views on how we should respond. Similarly, in all organisations there will be a small minority who seek to use such situations to promote other agendas. However, the vast majority of CWU members will be asking the question "what is the Union going to do about it?" and they will want and expect us to address their legitimate concerns. For a lot of our members they have yet to understand the potential consequences that a new business plan could have on our existing agreement and we will need to engage in further communications on this aspect.


Responding quickly with a letter to members' home addresses has helped and now we must build on those messages with a more detailed policy.


Our strategy must be to unite the Union and direct any anger to where it rightly deserves to be - against the employer. Since the company's announcement the Officers have now had the opportunity to weigh up all the issues involved and propose that we move forward in accordance with the detailed policy set out in Appendix A.
Update on recent meetings
In the last few days the National Officers met Royal Mail at the NDG meeting with Roger Poole and ACAS present. We left the company in no doubt that as a result of their recent actions we are now in a very serious situation. This was followed by a meeting with Mark Higson where the same message was conveyed. Whilst these meetings were taking place a letter was received from Moya Greene which makes interesting reading and offers the opportunity for urgent talks on a range of issues. The Union will take up this offer and we should be seeking to put in place a framework for these discussions this week.


Late on Friday the Union, supported by our Research Team, had a more detailed discussion on Colleagueshare with John Duncan Group HR Director, Jon Millidge and Andrew Dalkin. During this meeting the company gave a more detailed explanation of what has happened to Colleagueshare. In essence we did not feel that their explanation to date changed anything. The meeting concluded with us saying we would need to reconvene once we have undertaken a more detailed analysis of the information provided.
National Briefing
Tomorrow's Briefing will be crucial in explaining the policy of the Postal Executive and the need to achieve broad support for that policy. We must also outline the role Branches will have in helping deliver the policy. As far as this is concerned we will be asking Branches to convene immediate meetings with all local Reps and then convey the Unions position via workplace meetings and their own communications.
Conclusion
In the short time available the policy contained within this document offers the opportunity to lead a Union response that is strong, resolute, measured and proportionate to the company's recent actions.


Although this PEC document considers all the emerging issues, it will be necessary to have a policy for each issue on its own merits. Some of these policies will be dealt with in other documents, while this policy concentrates on our response to the company's new business plan and its announcement on Colleagueshare.


Furthermore, tomorrow's National Briefing is timely and will provide the opportunity for the Union to unite around our policy. Our objective must be to turn a difficult situation to our advantage and create a sense of purpose and direction amongst local Representatives and members. This will challenge the company's position and achieve a better outcome for everybody.




Recommendation 1 - That the Postal Executive endorse the policy lines stated.


Recommendation 2 - That this PEC document be circulated to Branches in
advance of tomorrow's briefing.


Recommendation 3 - That the policy adopted by the Postal Executive be
Subject to further communications with local
Representatives and members.








Dave Ward Ray Ellis
DGS(Postal) Assistant Secretary


Bob Gibson Terry Pullinger
Assistant Secretary Assistant Secretary


Phil Browne
Acting Assistant Secretary