LTB 455/12 - Colleagueshare/New Incentive Arrangements

[Geezer]

CWU.org
13 June 2012

LTB 455/12 - Colleagueshare/New Incentive Arrangements – Royal Mail/CWU National Joint Statement

No: 455/12
Ref: 60000i
13th June 2012

TO: ALL BRANCHES WITH POSTAL MEMBERS


Dear Colleague

Colleagueshare/New Incentive Arrangements - Royal Mail/CWU National Joint Statement

All Postal Branches will be aware that the Union has been engaged in national talks with the Royal Mail Group, in an attempt to retrieve something for our members from the Colleagueshare debacle.


The background to these talks was the company's announcement, back in early 2011, that the remaining elements of Colleagueshare were effectively worthless. The company has now confirmed that the Scheme has concluded with a final nil valuation. This means, for eligible employees, no further payments are due and the share certificates previously issued have no value.


When the original Royal Mail Group announcement was made in early 2011, the company provided the Union with all relevant information on the nil valuation and explained why this was unlikely to change in the future.


At that time the Postal Executive recognised that whilst there was nothing we could do about the rules of the scheme, we should nevertheless pursue alternative remuneration arrangements for our members. The position adopted by the Union was communicated to Branches and members and there have been a number of updates in the intervening period.


At various points, what has made these talks very difficult has been the financial position of the company, scrutiny from Government and Europe on company performance in light of State Aid, but above all the fact that Colleagueshare was an agreement between the Government and the company - not the Union. As such, the scheme was underwritten by very strict legal and valuation criteria that cannot be changed.


In February 2012, there was a positive development when Royal Mail committed to revisit Colleagueshare as part of the agreed three phase agenda for major national talks. Subsequently, the Union has continued to pursue this matter vigorously and we are pleased to report that the attached National Joint Statement has now been agreed. The salient points are as follows:-


· The Royal Mail Group has accepted that there will now be a further and final independent validation of both the legal and financial aspects of the Colleagueshare Scheme. Importantly, it has also been agreed that the output from this piece of work will be shared with all employees.


· The Union has secured ongoing alternative remuneration payments for CWU represented grades within the Royal Mail Group, alongside a commitment to introduce new incentive arrangements, linked to developing the competitive position of the company.


· The new incentive arrangements will include, as a minimum, an ongoing payment of £100 per year for each full time employee (pro rata part time), with the potential for additional payments linked to performance.


· In June 2012, each Royal Mail Group employee will receive the initial lead in £100 bonus payment (pro rata part time). This is also linked to current business performance.


· From 2013 onwards, for the Royal Mail OPG grade, the underpinning £100 will be paid as an additional and ongoing increase to the existing Christmas bonus. For all other Royal Mail Grades and Parcelforce Worldwide employees, the principle of the ongoing £100 payment is secured and will be paid in either December of each year, or through other tailored arrangements if both parties agree.


· Royal Mail Group has confirmed that these new arrangements do not replace any existing productivity schemes or monies arising from those schemes.

Given all the circumstances surrounding Colleagueshare, particularly the legal nature of the agreement that governs the rules of the scheme, we believe that CWU Branches will recognise the Union's efforts have secured a better than expected outcome for our members. Furthermore, the Union can legitimately claim to have taken the right position on Colleagueshare throughout.


Firstly, we secured a £1,000 for each Royal Mail Group employee (including at that time Post Office Limited), which would have otherwise been lost. Secondly, we have now been successful in securing a payment that has genuine ongoing value to the overall pay package of CWU represented grades. From 2013 onwards, the payment of this £100 as an ongoing increase to the current OPG grade Christmas bonus will be very much welcomed by CWU members. Similarly, other Royal Mail Group employees who currently do not receive a Christmas bonus, now have the opportunity for the ongoing £100 to be paid in December of each year. Also, the commitment to introduce new incentive arrangements will provide a further opportunity for additional payments linked to performance. Finally, CWU members deserve a fuller explanation of what happened to Colleagueshare and the Union has now ensured this will happen in an open and transparent way for all employees following the independent validation.


It should be noted that the terms of the Joint Statement do not apply to Post Office Limited employees following the recent separation of the business. The Postal Executive has agreed to pursue this matter directly with Post Office Limited and discussions are underway that will be subject to a further report in due course.


It is important that Branches and representatives convey to our members in the workplace the terms of the National Joint Statement and the background to the overall Colleagueshare situation as reported in this LTB. It will be our intention to write to our members in due course.


Any enquiries on the above should be addressed to the DGS (P) Department.


Yours sincerely



Dave Ward
Deputy General Secretary (P)



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New Incentive Arrangements – A Joint Statement between Royal Mail and CWU

In early 2011 Royal Mail advised employees that the remaining ColleagueShare incentive plan, as independently calculated, had returned a nil valuation. This has remained the case in 2012. Over the period of the scheme it paid out £1600 per full time employee and a further £1000 was converted into alternative incentive arrangements and payments.

Royal Mail has agreed to share with CWU all the relevant information to enable a further independent validation of the legal and financial aspects of the scheme. The intention is to share the output of this work with employees.

Given that the scheme has now concluded, Royal Mail and CWU have discussed and agreed an alternative approach that will provide employees with a further incentive linked to developing the competitive position of the company.

New scheme arrangements will be developed for CWU represented grades across Royal Mail, including Parcelforce Worldwide. This will not replace any existing productivity schemes or payments arising from those schemes. The new arrangements will include, as a minimum, an ongoing payment of £100 a year for each fulltime employee, with the potential for additional payments linked to performance. These payments will be pro-rata for part timers.

The initial lead in bonus payment of £100 will be made to each employee in CWU represented grades, linked to business profit performance and continuing support for modernisation in 2011/12. This will be paid in June 2012, pro-rata for part timers.

From 2013 onwards, in Royal Mail the underpinning £100 payment will be paid as an ongoing increase to the current Christmas bonus. For those CWU represented grades in Royal Mail and Parcelforce Worldwide who do not receive the Christmas bonus, the following will apply: they will either receive the ongoing £100 as a payment in December of each year, or alternatively both parties can agree separate arrangements for this ongoing payment.

The full details of the new scheme arrangements will be concluded as part of the forthcoming discussions due to commence on 2013/14 pay and other phase 3 talks.

[DGP1]

Just put it on our wages then

[fishtank]

Just put it on our wages then

The Christmas bonus has been £100 for many years.
The union was under pressure to agree an increase.
This provides a get out on both the colleagueshares and the bonus,the union can tick both boxes at once.
The truth is £100 is an insult to members.

At that rate it would take more than 14 years to realise the same money that leavers were getting in Sept 2010...when the company was saddled with the pension deficit and commercial loans and had to be worth less than it is today no matter what way you use to value it.

The new incentive scheme is just that...new and no doubt with new hoops to jump through.

[RTP]

hmm...

http://www.royalmailchat.co.uk/communit ... 46#p392946

[Jynxx]

thanks for the update, I like how we won't get the increase until next year likely by then we will be privatised and the new owners under no obligation to follow to any of this. I have always suspected the colleague shares have been held back until we get privatised then we will be offered the £1600 to agree to a new contract etc.

[RTP]

Look on the bright side, it's a pay rise of just under £2 a week






















before tax.....

[Jynxx]

Look on the bright side, it's a pay rise of just under £2 a week
before tax.....

LOL ty for making me smile, It's a shame really this job in itself is great, good crack with friends not a bad job at all, just a shame about the management constantly trying to screw you over in one way or the other, oh well I expected as much regarding the shares...there's always that small glimmer of hope once just once they won't screw us over then once again they do...think I'll just win the lottery tonight and quit anyways lol.

[grabeb]

Fan bloodytastic, I hold full issue of shares and 2 years ago reduced my hours.
I will now get pro rata of £100 about £30, my son has worked at royal mail for just under 4 years holds no shares and will receive £100.
The whole thing is a farce and just does not take into account the shares each employee holds, I understand this is instead of but it should reflect in some degree the shares that each employee holds.
The solution agreed without any ballot totally disgust me?
If someone holds the full share issue which regardless of hours worked paid out the full value at the time around £1300
Then surely under this instead of scheme anybody holding the full shares should get the full £100 and not pro-rata.
But here am I commenting on the unjustness of pro-rata of £100 for someone who holds the full share issue, when I should be commenting on the selling of souls for around £1200

[Red Robbo]

Very good management tactic hold something back ie Colleague Share payout and the Union will capitulate like a pack of cards !

[tortoisefred]

as a part time employee I will have to give it very careful consideration as to how I spend my 1 pound !!!!!!

[1969tonka]

i'll sell you my share certificate for £1 , it's bound to go up in value

[hantsman]

Very good management tactic hold something back ie Colleague Share payout and the Union will capitulate like a pack of cards !

Previous management have gone,

the Colleague Share payout was never ever viable, give Moya some credit RR

[SWIM]

are we getting it next friday or on after?

[halfull]

this £100 is a slap in the face! and ontop they will expect even more from us for a slap in the face.

[Mister T]

Network Drivers Christmas pay bonus was taken off us in a previous pay deal, now we have it back, bizzare.