First warning shot at managers....

[fishtank]

22 July 2013


Royal Mail is disappointed with Unite’s decision to hold a consultative ballot of its members on two specific issues. Royal Mail stressed this is a consultative ballot by Unite to understand its members’ views. It is not a ballot for industrial action.

In April, we agreed a 2.4 per cent pensionable pay increase with the Unite union, which represents management grades within Royal Mail, for members backdated to July 2012. There has been a limited exchange between Royal Mail and Unite on pay for 2013 but we are keen to get the matter concluded as early as possible.

Royal Mail’s position on the issues that form the basis of the consultative ballot is set out below.

Ownership of Royal Mail
Royal Mail welcomes the Government’s announcement that it intends to relinquish overall control and achieve minority ownership in the business. Royal Mail aims to combine the best of the public and private sectors. Private ownership will enable Royal Mail Group to become more flexible and fleet of foot in the fiercely competitive markets in which we operate.
The Company also welcomes the Government’s intention to give 10 per cent of all the shares in the business free to eligible Royal Mail Group employees in the UK at the time of the Initial Public Offering (IPO). This is the largest free stake of any major UK privatisation.
Our employees will have a meaningful stake in the company and its future success. As we move into the private sector, the current legal position is that all terms and conditions that apply to Royal Mail Group employees, including those working for Parcelforce Worldwide, would remain in place, on the same basis.

Pensions
Our proposal would be necessary, irrespective of whether Royal Mail is sold or not. 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. The NAPF estimated that the second £125 billion round of quantitative easing led to pension funds moving a further £90 billion into deficit.
Royal Mail is already paying approximately £400 million 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 £300 million that it would need to pay to keep the Plan open if no action was taken.
Our proposal could allow Royal Mail to commit to keep the Plan open to future accrual, subject to certain conditions, at least until the Company concludes its next periodic review in March 2018. During that time, there would be no changes to members’ contribution rates, retirement age or accrual rates.
For more information contact:
Shane O’Riordain on 07770 544585
Candice Macdonald on 07436 267324
Beth Longcroft on 07435 768549

- See more at: http://www.royalmailgroup.com/royal-mai ... 78zFr.dpuf" onclick="window.open(this.href);return false;

[knackeredneedadayoff]

who's taking odds that they dont go on strike