Admin and Supply Chain Pay – Revised Offer Rejected

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Letter to Branches




No: 683 /14
Ref: 601
31st October 2014


TO: ALL BRANCHES WITH POSTAL MEMBERS


Dear Colleague

Post Office: Admin and Supply Chain Pay – Revised Offer Rejected

Further to LTB 647 dated 17th October. I would like to advise Branches and members that we met with the Post Office on 22nd and 23rd October in good faith, with a view to resolving the current impasse on pay.

Unfortunately, the outcome of these meetings was extremely disappointing, with the Post Office providing a revised offer for just our Supply Chain members. The offer, which was of three years duration, was rejected by the negotiating team as being completely inadequate. Furthermore, no revised offer was received for our Admin members, which is absolutely unacceptable.

Supply Chain Revised Offer – Rejected

A revised offer was made for a three year pay agreement for Supply Chain members; however, this was conditional on the loss of 200 jobs, which is double the number associated with the previous offer and amounts to 15% of the Supply Chain workforce. Unbelievably, the pay offer for Year 1 was actually lower than the previous rejected offer at 1.9% versus 2%. The pay offer over three years is worth just £2m, yet the loss of 200 jobs will save the Post Office an incredible £8m per annum.

The full details of the revised offer are as follows:

Year 1 – April 2014

1.9% consolidated pay increase
£500 (non-consolidated) lump sum paid in December 2014 linked to change and job reductions
£200 (non-consolidated) lump sum in March 2015 linked to change and job reductions

Year 2 – April 2015

1.6% consolidated pay increase
£500 (non–consolidated) lump sum paid in December 2015 dependent on delivery of further agreed progress and duty revisions.



Year 3 – April 2016

1.6% consolidated pay increase
£200 (non-consolidated) lump sum paid sometime in 2016.

The Supply Chain offer makes for a total pay rise of 5.18% (fully compounded over 3 years). However:

The pay rises above do not flow through to the Single Person Skills Allowance or the Defined Area Payments, which are both pensionable, thus reducing the headline value of the offer for many of our members.

The £500 and £200 lump sums in years 2 & 3 will only be paid to members who are still employed in the Post Office and will not be paid to any member who takes Voluntary Redundancy.

Please note that a home mailing has been sent to our Admin and Supply Chain members detailing the rejected offer.

Additionally for your information, please find associated with this LTB two management communications regarding the Supply Chain offer and the non offer for our Admin members. Interestingly the management communication to our Admin members states “we are finalising a revised proposal on pay for Admin colleagues ...”. This is nice to know some seven months after the pay date of 1st April 2014. Ironically management’s communications actually strengthens our point of view although there is a lack consistency with the formal proposals as they are now claiming there will be 190 job losses yet the original proposal stated 200.

Further developments will be reported.


Yours sincerely



Andy Furey
Assistant Secretary