POST OFFICE ADMIN / SUPPLY CHAIN - BALANCE SCORECARD 2012/13

[TrueBlueTerrier]

o: 413 Ref: 601a Date: 14th June 2013

TO: ALL BRANCHES WITH POSTAL MEMBERS

Dear Colleague,

POST OFFICE ADMIN / SUPPLY CHAIN - BALANCE SCORECARD 2012/13 BONUS PAYMENTS

I would like to advise Branches that our members working in Post Office Admin functions and Supply Chain have exceeded their annual target performance for the 2012/13 financial year. As a consequence, all members will receive a “stretch” bonus payment in their wages/salaries at the end of June.

An integral part of the three year pay agreement (2011/14) for our members working in both Admin and Supply Chain was to create a new annual bonus scheme. The bonus agreement for Year Two (2012/13) allowed for an on target performance annual payment of:

• £880 (pro-rata for part-timers) for all Supply Chain & Admin grades except Postal Assistants in Supply Chain

• £730 (pro-rata for part-timers) for Postal Assistants in Supply Chain. Postal Assistants previously received an enhancement to their basic pensionable pay by virtue of migrating potential bonus monies into base pay

The pay agreement also allowed for a further “stretch” potential of up to 25% in all three years 2011-14 for performance over target. As a consequence, for 2012/13, our members will receive the following bonus payments (pro-rata for part-timers) with June salaries/wages:

Supply Chain – performance out-turned at 120.85% of target

• Crew, LA1s, SO1s (Swindon) and PO Grades: £1,064 (vs £974 in 2011/12)

• Postal Assistants: £883 (vs £802 2011/12)

Admin - performance out-turned at 116.69% of target

• POs including Field Support Advisors: £1,027 (vs £974 in 2011/12)

HR Service Centre – Farnworth

Admin members in HR Service Centre who are not part of the balanced scorecard bonus scheme, will continue to receive their previously agreed scheme, which will pay £750 (pro-rata for part-timers) for performance over the last year (with June salaries). This is on top of the four quarterly payments of £250 which have been paid each quarter for the last year.

The total amount paid in bonuses to all members in Admin (including HR Service Centre) and Supply Chain for 2012/13 is £1,903,000 (vs 1,653,000 in 2011/12). This is a 15% improvement in the overall value of bonus payments being made.

For 2013/14, the bonus potential marginally increases from £880 to £900 for all grades except Postal Assistants whose bonus potential increases from £730 to £750.

Bonuses for Admin and Supply Chain Managers

I am obviously pleased that bonus payments have improved on the previous year, which highlights the hard work and commitment shown by our Admin and Supply Chain members who have performed above target. However, I am disappointed that these bonuses pale into insignificance compared with the bonuses received by managers in the same work Units. Typically, the average annual bonus payment for our members equates to less than 5% of basic pay, whereas the starting point for bonuses for managers is 10% of salary and this could be enhanced to as much as 23% depending on individual performance (PDR score). (In extreme individual cases where performance has been extremely poor, bonus payments wouldn't be made).

Due to the Post Office’s performance for 2012/13, they have confirmed that the following bonus amounts will be paid to managers:

• For central support and supply chain senior managers (4 and 3A) 122.3% of bonus entitlement will be paid

• For central support and supply chain middle managers (3B, 2A and 2B) 116.7% of bonus entitlement will be paid

Managers also have the potential to increase bonuses by achieving “stretch targets”. The Post Office uses the following example to illustrate the amount paid to a manager earning £30,000 with a PDR score of 4:

"So if we use £30,000 as an example salary you would get £5253 bonus payable in June 2013 salary. Please note the first 12.5% of salary as bonus is pensionable if you are in the Royal Mail pension plan"

In the example above, the Post Office notes that bonus monies equating to 12.5% of the manager’s annual salary are pensionable; this amounts to £3,750.

Part of our agenda going forward must be to achieve pensionable bonuses for our members working for Admin and Supply Chain, an advantage currently only afforded to managers. Our aim is to address this inequality at the earliest opportunity.

Two tailored joint statements are being published today advising all members of these benefits. The joint statements are attached to this LTB.

Any queries in relation to this LTB, please contact Claire Sinclair on 020 8971 7361 or csinclair@cwu.org

Yours sincerely

Andy Furey
Assistant Secretary