LTB: 360/15 Royal Mail allowance review

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Letter to Branches








No: 360/15
Ref: PTC/RE/dj/020
Date: 2 June 2015

TO: ALL BRANCHES WITH POSTAL MEMBERS


Dear Colleagues

RE: Royal Mail allowance review

Further to LTB 122 dated 20th February 2015, branches will be aware Royal Mail conducted an allowance review during the latter part of 2014. The review looked at the allowance(s) members’ actually received against allowances they were entitled to.

In February 2015, the union was informed the work had been completed and there were over 2,600 cases where members received allowances they were not entitled to.

Royal Mail was going to commence the recovery of these allowances using the overpayment procedure. Negotiations took place in an attempt to ensure that any recovery of overpayment was performed within an orderly and logical process, ensuring our members fully understand and have the opportunity to challenge any alleged overpayment.

Due to several obstacles put in the way during the negotiations, it was proving difficult to reach agreement. However, whilst this has taken longer than originally anticipated, a process has now been agreed which is in line with the longstanding overpayment payment policy and ensures our members have the opportunity to:-


Fully understand how the overpayment occurred and have a breakdown of any alleged overpayment.

Comment on and challenge the overpayment.

Have their local representative present at discussions.

Refer the overpayment for national review with reference to the relevant collective agreement, if after discussion, any alleged overpayment (or part thereof) is still disputed.

Have their personal financial circumstances taken into account in agreeing any repayment plan.


I would like to thank Carl Maden who led the negotiations and will continue to lead the process on behalf of the DGS (P) Department going forward, including the national review.

A copy of the agreed process and joint statement are attached to this LTB.

Any enquiries on the above LTB should be addressed to the DGS (P) Department.


Yours sincerely


Ray Ellis,
A/Deputy General Secretary (P)

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2nd June 2015.

Draft Joint Statement on the Royal Mail Allowance Review.

Royal Mail conducted an Allowance Review during the latter part of 2014. The review consisted of Royal Mail checking all allowances actually being paid, against allowances that should be paid, for every employee.

The review has uncovered situations where some colleagues have not been paid allowances they are due and others being paid allowances that they are not entitled to. Where colleagues had been underpaid, this has been rectified

Royal Mail is seeking to recover any overpayments. Royal Mail and the CWU want to ensure that consistency applies across all functions and territories. Therefore, we have agreed a process that must be used to discuss overpayments found within the allowance review. The process will be used in a reasonable, sensitive manner, ensuring colleagues have the opportunity to fully understand how the overpayment occurred, during a discussion with your line manager at which you will have the opportunity to have your CWU representative present.

Sometimes errors occur, so we have built in a process for the overpayment to be reviewed at national level. Any review should be backed up with evidence and a decision will be made within 1 week.

A copy of the full process is attached to this joint statement.

Any questions or interpretation of this process should be directed to the signatories below.

Dale Lang. Carl Maden.
Industrial Relations A/Assistant Secretary PTCS Dept.
Royal Mail Communication Workers Union.

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Allowance Review: Process for the Overpayment

Discussion

The following process will be used when a discussion is required with a colleague under the Royal Mail allowance review. The process will be followed in step order. Royal Mail will deal with overpayments in a reasonable, sensitive manner.

1. When an overpayment has been identified HRSC will provide the colleague’s line manager with an explanation of the overpayment along with the dates the payments commenced and ended. HRSC will inform the line manager they now need to meet and discuss the overpayment with the colleague and also share the details of the overpayment received from HRSC.

2. If the overpayment is £25 or less (weekly paid) or £100 or less (monthly paid) pro rata for part time colleagues, the discussion in (4) below will still take place, however the repayment will normally be paid back in the next available pay run.

3. Any net underpayment will be made in the next weekly/monthly pay run following receipt of notification by HRSC.

4. The line manager will arrange a meeting to discuss a repayment schedule with each colleague reported to have been overpaid. At least 48 hours prior notice of the interview will be given of the meeting and if they wish, they can be accompanied by their union representative.

5. A record of the interview must be kept and a copy given to the colleague. A schedule of the overpayment, as well as an explanation for the overpayment will be provided to the colleague to enable a more informed discussion. This will give the colleague involved the opportunity to comment on all relevant facts and raise any personal circumstances or mitigating facts which must be taken into account. In all cases line managers will take account of their colleague’s financial circumstances in reaching an agreed repayment plan.

6. If following this explanation the overpayment remains disputed the individual involved (if they wish with the support of their local CWU representative) should justify their reasons according to the contents of collective agreements in a conversation with their line manager. Following this if the colleague still does not accept they have been overpaid, details with reference to the relevant collective agreements must be forwarded immediately to both CWU and Royal Mail Headquarters who will review the details. The outcome of the national review will be communicated within a week. The national review will not deal with individual personal circumstances. Recovery will not commence before a response is received and a further discussion has taken place between the line manager and colleague.


7. Where a repayment plan is agreed, the sum will remain in place for the life of the repayment, unless an alternative repayment schedule is agreed.

8. Where a colleague who has been overpaid is due a bonus or other lump sum payment Royal Mail may discuss with them the option of recovering all or an element of the lump sum.

9. Where a repayment plan cannot be agreed between the line manager and colleague, Royal Mail will take 10% of net basic pay (not including overtime, allowances e.g. shift allowance etc) as repayment until the overpayment is recovered. The rate of the overpayment will remain at 10% for the life of the repayment plan, unless an alternative repayment schedule is agreed.

10. No overpayment recovery will commence until such time as all steps within this process have been followed. In exceptional circumstances line managers can reduce or waive an overpaid amount.