CWU invites government to work together for new solution on Royal Mail or face strike action
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CWU is today (Tuesday) publishing a letter it has written to Michael Fallon MP to urge him to think again on privatisation of Royal Mail and consider a new approach to secure the future of the company. The union has warned that if the government doesn't think again then the threat to terms and conditions of postal workers will inevitably lead to strike action.
The letter, signed by the union's General Secretary, Billy Hayes and Deputy General Secretary, Dave Ward calls on the government to consider alternative ways for the company to access capital and look at more innovative business structures that would align the interests of the company, customers and the workforce. It compares the way that Network Rail has been kept in public ownership whilst being given the management structure to borrow on the open market.
Restating the union's opposition to privatisation, the CWU leaders have called for a model that makes Royal Mail a 'not-for-dividend' organisation with profits re-invested into services.
CWU has laid out a detailed model for how the company would operate with social, commercial and ethical responsibilities.
CWU general secretary Billy Hayes said: "Government dogma stands in the way of a serious debate to create a positive future for this 350 year old institution. Nobody outside of government and their potential investors wants their postal service sold. The public consistently oppose the sale and recently 96% of workers voted against.
"We are offering the government the opportunity to discuss how best to genuinely take Royal Mail forward. It's time for vested interests and political opportunism to be set aside and to seize the chance to make the mail service work for customers, the company and the workforce."
The letter also insists that the government legally underpins assurances over the future terms and conditions of CWU members' and the growing threat of End to End competition.
Dave Ward, CWU deputy general secretary, said: "Negotiations with Royal Mail have been ongoing about the future of terms and conditions for workers for the foreseeable future. Those talks have reached a crucial stage but without legal binding assurances they will not be worth the paper they are written on. The government has a crucial role in bringing those discussions to a conclusion and they must act now. If we fail to obtain successful assurances protecting workers' terms and conditions, industrial action in the near future will be inevitable.
"Royal Mail workers have co-operated with modernisation and greatly contributed to the success of the company. We agreed a shared vision with Royal Mail and privatisation was never part of that vision."
The union has proposed these alternative solutions in private discussions with the minister previously but has now repeated them publicly to ensure CWU's position is not mis-represented.
"We will meet the minister any time" said Billy Hayes. "it's never too late to change direction."
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CWU invites government to work together for new solution
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TrueBlueTerrier
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CWU invites government to work together for new solution
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Re: CWU invites government to work together for new solution
Read the Letter to MP Michael Fallon in full.
Our Ref : DW/AC 21003
9th July 2013
Rt Hon Michael Fallon MP
Minister of State for Business and Enterprise
Department of Business Innovation and Skills
1 Victoria Street
London SW1H 0ET
Dear Michael
Following our recent meeting we said we would write to you restating our position on a range of issues associated with the Postal Services Act.
Privatisation
As you know the CWU remains fundamentally opposed to privatisation. It is not the answer to the long-term success of Royal Mail and neither will it secure the future of the Universal Service.
The Government has framed its arguments for privatisation as though Royal Mail is in imminent danger and a sell off is the only way it can survive. This is simply not true. The Royal Mail does not have to compete with the NHS or education services for sparse Government funds. There are alternative ways for the company to access capital and more innovative business structures that really would align the interests of the workforce, customers and the company.
We have spoken about these social business models at various meetings and it is disappointing that Government dogma continues to stand in the way of any serious debate about an alternative. It is patently obvious that from the outset this Government has never been interested in any new ideas – instead it relies on the tired old thinking of the past.
To ensure our position is not misrepresented in the ensuing public debate, we are reaffirming that the CWU would support an alternative business model based on the following:
The Royal Mail Group should be a ‘not for dividend company’ with profits reinvested back into services and the workforce. It would operate for public good, balancing its social obligations with commercial opportunities.
The company would be able to access capital by borrowing on the commercial markets without this contributing to Government debt. Network Rail is a perfect example of this. By creating a new Board structure it has been able to borrow over £27 billion in recent years. A fully modernised Royal Mail with proper employee alignment will also be able to self finance some of its own investment. Neither the Government nor the company can put forward any rational argument as to why this type of structure is not viable. Such a structure would protect over 300 years of Royal Mail heritage as one of the last Great British institutions and still achieve Government objectives.
There would be a company charter set out in legislation that would confirm Royal Mail as the USO provider and act as a locking mechanism against any further attempts to alter the structure of the company. The charter would set out a list of ethical principles and values that the company would be bound by, including its approach to employee and industrial relations.
There would be an overhaul of the governance structure and the main Board representatives would be balanced between appointees with social, commercial and ethical responsibilities. The Unions could nominate a small number of Board members, but not from within their organisations.
The company would implement the High Pay Commission recommendations with a fixed pay differential between what Board members, Senior managers and the workforce earn.
The company would operate single status benefits from the top to the bottom. Incentive schemes would relate to a fixed percentage of people’s overall salary.
It is entirely possible to develop the aforementioned social business structure and we would urge you to consider such an alternative. To continue to ignore the views of 96% of the workforce will only serve to destabilise and reverse the progress made on modernisation.
Assurances on Future Terms and Conditions
As you know the Union is engaged in negotiations with the company to secure an agreement on assurances over the future terms and conditions of CWU members’ in the event of privatisation and the growing threat of End to End competition.
As we discussed, these negotiations are reaching a crucial stage and CWU are seeking an agreement that would be legally binding on both parties and any potential new owner. Assurances on future terms and conditions without a binding legal framework would not be worth the paper they are written on. The Government has a central role in bringing talks to a successful conclusion. However, if the Union cannot reach an acceptable agreement in the near future then we will ballot our members for National Industrial Action. We expect the Industrial Action policy to be ratified at a Conference of the Union on 31st July 2013.
Pensions
We have discussed the latest pension developments with you and it is now essential that the Government intervene in this matter. As you know the Union has engaged our Lawyers to check the legitimacy of these latest pension changes in light of the previous Government settlement and the European State Aid ruling. The Government should be in no doubt that this development is likely to be part of a National dispute unless we can find an urgent solution. CWU members were promised that their pensions were secure and believe the Government has a legal and moral responsibility to uphold its promises.
Employee Share Ownership
The Union has been consistent when asked about our views on Employee Ownership. These have been stated in evidence before Parliament during the passage of the Bill and were set out in a broader context in our letter to you of 9th May 2013, a copy of which is attached for ease of reference. We have also exchanged views on this matter in our regular meetings. Nevertheless, to again ensure our position is not misrepresented in public, we are happy to restate the points we have consistently made:
1. If this is really about engaging employees and giving them a real say over the future, then there are far better ways of achieving this than the narrow thinking the Government has restricted itself to on Employee Shares. For example the alternative social business model concept with a properly negotiated incentive scheme would be far more effective.
2. Please remember the starting point is the failed Government Colleague Share Scheme. Postal Workers still believe they are owned around £2500 each and they expect their Union to pursue this.
3. Postal Workers are more concerned about their basic pay, pensions and proper bonus arrangements that relate directly to their efforts at work.
4. If despite our views, the Government just press on regardless then we would make the following points about an Employee Share Scheme:
The employee stake should be maximised. As a minimum it should at least hit the threshold of 25%.
Employee shares should be held in a Collective Trust and the CWU should have a formal role on the Trust Board.
Employee shares should be free. The majority of postal workers do not have spare cash to buy shares, even at discount prices.
Employee shares should not be tradable. If this were the case the majority of employees would sell them at the first opportunity. We fail to see how anybody can suggest that tradable shares will align the workforce with the objectives of the company.
Instead of dividends there should be options for an incentive scheme to top up pensions.
5. If as we expect, the Government announce the detail of an Employee Share Scheme this week, based on what you told us at our last meeting, then this will be another missed opportunity. Incidentally are you aware that the company are now presenting Employee Shares as an integral part of their three year pay offer? They have told us that these shares will replace all future bonus/incentive arrangements. Can you let us have your views on this aspect as CWU members will want to know if this has been agreed with Government.
Could you also confirm that under your proposal employees will automatically receive free shares unless they opt out? This is the position that was explained to us by your Team and we would like complete clarity on this process.
Summary
In recent years Postal Workers have gone through an unprecedented amount of change. This was based on an agreement that set out a shared vision of modernisation. Privatisation was never part of that vision. Even at this stage we urge you to consider an alternative approach and continue dialogue with the Union on all the issues covered in this letter.
Yours sincerely
Billy Hayes Dave Ward
General Secretary Deputy General Secretary (Postal)
Our Ref : DW/AC 21003
9th July 2013
Rt Hon Michael Fallon MP
Minister of State for Business and Enterprise
Department of Business Innovation and Skills
1 Victoria Street
London SW1H 0ET
Dear Michael
Following our recent meeting we said we would write to you restating our position on a range of issues associated with the Postal Services Act.
Privatisation
As you know the CWU remains fundamentally opposed to privatisation. It is not the answer to the long-term success of Royal Mail and neither will it secure the future of the Universal Service.
The Government has framed its arguments for privatisation as though Royal Mail is in imminent danger and a sell off is the only way it can survive. This is simply not true. The Royal Mail does not have to compete with the NHS or education services for sparse Government funds. There are alternative ways for the company to access capital and more innovative business structures that really would align the interests of the workforce, customers and the company.
We have spoken about these social business models at various meetings and it is disappointing that Government dogma continues to stand in the way of any serious debate about an alternative. It is patently obvious that from the outset this Government has never been interested in any new ideas – instead it relies on the tired old thinking of the past.
To ensure our position is not misrepresented in the ensuing public debate, we are reaffirming that the CWU would support an alternative business model based on the following:
The Royal Mail Group should be a ‘not for dividend company’ with profits reinvested back into services and the workforce. It would operate for public good, balancing its social obligations with commercial opportunities.
The company would be able to access capital by borrowing on the commercial markets without this contributing to Government debt. Network Rail is a perfect example of this. By creating a new Board structure it has been able to borrow over £27 billion in recent years. A fully modernised Royal Mail with proper employee alignment will also be able to self finance some of its own investment. Neither the Government nor the company can put forward any rational argument as to why this type of structure is not viable. Such a structure would protect over 300 years of Royal Mail heritage as one of the last Great British institutions and still achieve Government objectives.
There would be a company charter set out in legislation that would confirm Royal Mail as the USO provider and act as a locking mechanism against any further attempts to alter the structure of the company. The charter would set out a list of ethical principles and values that the company would be bound by, including its approach to employee and industrial relations.
There would be an overhaul of the governance structure and the main Board representatives would be balanced between appointees with social, commercial and ethical responsibilities. The Unions could nominate a small number of Board members, but not from within their organisations.
The company would implement the High Pay Commission recommendations with a fixed pay differential between what Board members, Senior managers and the workforce earn.
The company would operate single status benefits from the top to the bottom. Incentive schemes would relate to a fixed percentage of people’s overall salary.
It is entirely possible to develop the aforementioned social business structure and we would urge you to consider such an alternative. To continue to ignore the views of 96% of the workforce will only serve to destabilise and reverse the progress made on modernisation.
Assurances on Future Terms and Conditions
As you know the Union is engaged in negotiations with the company to secure an agreement on assurances over the future terms and conditions of CWU members’ in the event of privatisation and the growing threat of End to End competition.
As we discussed, these negotiations are reaching a crucial stage and CWU are seeking an agreement that would be legally binding on both parties and any potential new owner. Assurances on future terms and conditions without a binding legal framework would not be worth the paper they are written on. The Government has a central role in bringing talks to a successful conclusion. However, if the Union cannot reach an acceptable agreement in the near future then we will ballot our members for National Industrial Action. We expect the Industrial Action policy to be ratified at a Conference of the Union on 31st July 2013.
Pensions
We have discussed the latest pension developments with you and it is now essential that the Government intervene in this matter. As you know the Union has engaged our Lawyers to check the legitimacy of these latest pension changes in light of the previous Government settlement and the European State Aid ruling. The Government should be in no doubt that this development is likely to be part of a National dispute unless we can find an urgent solution. CWU members were promised that their pensions were secure and believe the Government has a legal and moral responsibility to uphold its promises.
Employee Share Ownership
The Union has been consistent when asked about our views on Employee Ownership. These have been stated in evidence before Parliament during the passage of the Bill and were set out in a broader context in our letter to you of 9th May 2013, a copy of which is attached for ease of reference. We have also exchanged views on this matter in our regular meetings. Nevertheless, to again ensure our position is not misrepresented in public, we are happy to restate the points we have consistently made:
1. If this is really about engaging employees and giving them a real say over the future, then there are far better ways of achieving this than the narrow thinking the Government has restricted itself to on Employee Shares. For example the alternative social business model concept with a properly negotiated incentive scheme would be far more effective.
2. Please remember the starting point is the failed Government Colleague Share Scheme. Postal Workers still believe they are owned around £2500 each and they expect their Union to pursue this.
3. Postal Workers are more concerned about their basic pay, pensions and proper bonus arrangements that relate directly to their efforts at work.
4. If despite our views, the Government just press on regardless then we would make the following points about an Employee Share Scheme:
The employee stake should be maximised. As a minimum it should at least hit the threshold of 25%.
Employee shares should be held in a Collective Trust and the CWU should have a formal role on the Trust Board.
Employee shares should be free. The majority of postal workers do not have spare cash to buy shares, even at discount prices.
Employee shares should not be tradable. If this were the case the majority of employees would sell them at the first opportunity. We fail to see how anybody can suggest that tradable shares will align the workforce with the objectives of the company.
Instead of dividends there should be options for an incentive scheme to top up pensions.
5. If as we expect, the Government announce the detail of an Employee Share Scheme this week, based on what you told us at our last meeting, then this will be another missed opportunity. Incidentally are you aware that the company are now presenting Employee Shares as an integral part of their three year pay offer? They have told us that these shares will replace all future bonus/incentive arrangements. Can you let us have your views on this aspect as CWU members will want to know if this has been agreed with Government.
Could you also confirm that under your proposal employees will automatically receive free shares unless they opt out? This is the position that was explained to us by your Team and we would like complete clarity on this process.
Summary
In recent years Postal Workers have gone through an unprecedented amount of change. This was based on an agreement that set out a shared vision of modernisation. Privatisation was never part of that vision. Even at this stage we urge you to consider an alternative approach and continue dialogue with the Union on all the issues covered in this letter.
Yours sincerely
Billy Hayes Dave Ward
General Secretary Deputy General Secretary (Postal)
All post by me in Green are Admin Posts.
Any post in any other colour is my own responsibility.
If you like a news story I posted please click the link to show support Any news stories you can't post - PM me with a link
My sharing of news articles should not be interpreted as an endorsement or condemnation of any particular viewpoint or the issues presented. I share them solely for informational purposes.
Any post in any other colour is my own responsibility.
If you like a news story I posted please click the link to show support Any news stories you can't post - PM me with a link
My sharing of news articles should not be interpreted as an endorsement or condemnation of any particular viewpoint or the issues presented. I share them solely for informational purposes.
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scoobydo79
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Re: CWU invites government to work together for new solution
Well I think thats a good letter 
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mandelsons_toenail
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Re: CWU invites government to work together for new solution
Yes it is.
Horse, bolted springs to mind.
Horse, bolted springs to mind.
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POSTMAN
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Re: CWU invites government to work together for new solution
Did Fallon reply...
I Wrote-During Covid-Which is still relevant now
It's good to get these types of threads, the ridiculous my manager said bollox, so we can reassure ourselves that while the world is falling apart, Royal Mail managers are still being the low-life C***S they have always been.
My BFF Clash
The daily grind of having to argue your case with an intellectual pigmy of a line manager is physically and emotionally draining.
It's good to get these types of threads, the ridiculous my manager said bollox, so we can reassure ourselves that while the world is falling apart, Royal Mail managers are still being the low-life C***S they have always been.
My BFF Clash
The daily grind of having to argue your case with an intellectual pigmy of a line manager is physically and emotionally draining.
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zipmeister
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Re: CWU invites government to work together for new solution
5. If as we expect, the Government announce the detail of an Employee Share Scheme this week, based on what you told us at our last meeting, then this will be another missed opportunity. Incidentally are you aware that the company are now presenting Employee Shares as an integral part of their three year pay offer? They have told us that these shares will replace all future bonus/incentive arrangements. Can you let us have your views on this aspect as CWU members will want to know if this has been agreed with Government.
Has anything else been mentioned about this yet?
Has anything else been mentioned about this yet?