managers in consultative ballot on pension and privatisation

[TrueBlueTerrier]

Royal Mail managers in consultative ballot over pension cuts and privatisation

http://www.unitetheunion.org/news/royal ... atisation/" onclick="window.open(this.href);return false;

Over 6,000 Royal Mail managers are being asked whether they back proposed changes to their pensions which could lead to some staff who have been promoted facing cuts of £4,888 a year when they retire.

In a consultative ballot that starts today (Monday 22 July), members of Unite, Britain’s biggest union are also being asked whether they support government plans to sell-off the Royal Mail this autumn.

The union accused the Royal Mail of fattening the company up for privatisation with the proposed pension changes and penalising postal workers who had stayed loyal to the company and worked their way up.

According to the company’s own figures, a postman or postwoman who has gained promotion to become a manager in a delivery office, stands to lose £97,760 in pension payouts if they retire at 65 and live until they are 85 years old. (See notes)

The proposed changes to the Royal Mail pension scheme come just over a year after the government introduced its ‘pension solution’ as part of the Postal Services Act in March 2012.

The consultative ballot runs from Monday 22 July to Friday 16 August.

Commenting, Brian Scott, Unite officer for Royal Mail managers said: “The views of hardworking staff who have made Royal Mail the success it is today are being ridden roughshod over.

“It is no coincidence that the company is putting forward proposals to cut pensions ahead of the sell-off. The complex changes will penalise people who have stayed loyal and worked their way up, creating uncertainty for people who have paid into their pension in good faith.

“Members face an uncertain future of privatisation and pension cuts. Any cuts to the pension scheme to fatten the company up for privatisation will not be tolerated by our members. It is time their voice was heard and their concerns addressed.”


ENDS

For further information contact Alex Flynn, Unite head of media and campaigns on 020 3371 2066 or 07967 665 869.

Notes to editors

Unite is Britain and Ireland’s largest trade union with 1.4 million members working across all sectors of the economy. The general secretary is Len McCluskey.

Examples of how the pension changes will affect managers

A member aged 40 with 20 years’ pensionable service would get a pension of £21,512 on retirement at age 65 before the changes. After the changes, the pension would be £16,624, if the member retires at age 65.

A member aged 55 with 35 years’ pensionable service would get a pension of £17,059 on retirement at age 65 before the changes. After the changes, the pension would be £12,996, if the member retires at age 65.

[TrueBlueTerrier]

Royal Mail managers ballot over privatisation and pension cuts

http://www.pensionsage.com/pa/Royal-Mai ... n-cuts.php" onclick="window.open(this.href);return false;

Thousands of Royal Mail managers are taking part in a consultative ballot today over the implementation of pension cuts and controversial plans to privatise the company.

Royal Mail has been accused by Unite, which represents the company’s managers, of implementing pension changes to “fatten the company up for privatisation”.

More than 6,000 managers will take part in the ballot, running from today until 16 August when members will state whether they support the latest government plans.

Royal Mail recently announced it is considering imposing a cap on basic pensionable pay for its scheme members, as it faces an extra £300m annual bill from its pension operations. It also stated that changes would see any increase in pensionable pay capped at RPI inflation up to 5 per cent.

Unite said that at present a scheme member aged 40 with 20 years’ pensionable service would get a pension of £21,512 on retirement at age 65. After the changes however, the pensionable pay would drop to £16,624.

The union added that a member aged 55 with 35 years’ pensionable service would get a pension of £17,059 on retirement at age 65 compared to a pension of £12,996 after the changes.

Unite officer for Royal Mail managers Brian Scott said: “The views of hardworking staff who have made Royal Mail the success it is today are being roughshod over”.

“It is no coincidence that the company is putting forward proposals to cut pensions ahead of the sell-off. The complex changes will penalise people who have stayed loyal and worked their way up, creating uncertainty for people who have paid into their pension in good faith,” he said. “Any cuts to the pension scheme to fatten the company up for privatisation will not be tolerated by our members. It is time their voice was heard and their concerns addressed.”

Royal Mail expressed its disappointment at Unite’s decision to hold a ballot and argued the current proposals would be necessary irrespective of whether it is sold or not.

In a statement, the company said: “Defined benefit pensions are becoming increasingly costly for all the remaining employers who offer such a scheme. That is because of conditions in the financial markets, including very low gilt yields."

"Royal Mail is already paying approximately £400m every year in ongoing contributions into the Royal Mail Pension Plan – one of the largest amounts in the UK- and will continue to do so. The company cannot afford the additional £300m that it would need to pay to keep the plan open if no action was taken.”

[Danelectro]

[oypostie]

Now that would put the cat amongst the pigeons

[baldrick]

Last time RM threatened to change managers' pensions they were up in arms about it, but then RM made their bonuses pensionable so that they would strike break when we were taking industrial action.
It is one issue that they might just be prepared to take IA on. Will be interesting to see how this goes.

[mandelsons_toenail]

[P13]

Unite officer for Royal Mail managers Brian Scott said: “The views of hardworking staff who have made Royal Mail the success it is today are being ridden roughshod over”.
I believe Brian Scott has got a bit confused, should it not read "Our bullying members have been riding roughshod over hard working Postmen and women"

[UnhappyGremlin]

The results of this should be interesting.
Hope they vote similarly to us. Though they probably don't have the bottle.

[dvbuk55]

I believe they have more to worry about by privatisation than we do - I think they will be severely culled.

[UnhappyGremlin]

I believe they have more to worry about by privatisation than we do - I think they will be severely culled.

I agree. I'd expect a 60 to 80% cut in them.
But, managers are always very short sighted. And, quite frankly, stupid. They always do as instructed from above, usually to have the resultant situation blow up in their face, and having to take the blame for the mess that's left. They just don't think about any consequences.

[dvbuk55]

I believe they have more to worry about by privatisation than we do - I think they will be severely culled.

I agree. I'd expect a 60 to 80% cut in them.
But, managers are always very short sighted. And, quite frankly, stupid. They always do as instructed from above, usually to have the resultant situation blow up in their face, and having to take the blame for the mess that's left. They just don't think about any consequences.

Well their consultative ballot will go the same way as ours did...........and likewise if it came to hey lads hey how many would be manning the barricade I wonder.

[dvbuk55]

I believe they have more to worry about by privatisation than we do - I think they will be severely culled.

Not before we've been culled first.

Well I suppose it's relative if we lost 1500 jobs it would represent 1%, if they lost the same number it's 10%.

[UnhappyGremlin]

I believe they have more to worry about by privatisation than we do - I think they will be severely culled.

Not before we've been culled first.

Well I suppose it's relative if we lost 1500 jobs it would represent 1%, if they lost the same number it's 10%.

They'll need the managers on board to implement the new changes when we're sold. Once that's done and we can't be culled any more then the new owners will go after reducing managerial numbers as they'll be surplus to requirements.

Not necessarily.
They may decide to do it all in one go, and bring in outsiders on a short term contract to do it, who would just slice through anyone and everyone with impunity. They would only be required to hit their targets to get paid/get a bonus etc.
Plus, current RM managers probably couldn't do it, no skills/knowhow. They've cocked up royally in some instances involving the MC Rationalisation programme.

[Budfrog]

I believe they have more to worry about by privatisation than we do - I think they will be severely culled.

They have much more to worry about for 3 reasons:

1. Many of the non-operational managerial positions are not essential to the running of RM and though there have been reductions in recent years there are still savings to be made.

2. Compared to outside industry RM managers are relatively well paid for what they do particularly as many do not hold any form of professional qualifications.

3. Their union is weak which means that their terms and conditions will be under threat with little opposition .... they will simply be grateful to have a job at the end of it particularly if the safety net of VR is taken away.

[UnhappyGremlin]

And some of those that are left will be busted down to 'Team Leaders' and get the supervisory allowance instead of managers salary.
A cut of thousands per year, for the same, or more, responsibility.