LTB 425/18 Post Office: Crown Office Network Sales Incentive Scheme - Compensatory Payment for Q1 (April to June) 2018/19

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LTB 425/18 Post Office: Crown Office Network Sales Incentive Scheme - Compensatory Payment for Q1 (April to June) 2018/19

No. 425/2018

26th July 2018



Dear Colleagues

POST OFFICE: CROWN OFFICE NETWORK SALES INCENTIVE SCHEME – COMPENSATORY PAYMENT FOR Q1 (April to June) 2018/19

Branches will be aware that our current pay claim for Post Office members includes a joint review of all incentive schemes, including the Crown Office Sales Incentive Scheme (SIS).

In this regard I am pleased to advise that whilst pay negotiations are ongoing the principle of replacing the SIS has been agreed. This had led to an agreed interim position to bridge the time between closing the old scheme and finalising and in turn communicating the details of the new scheme which will provide for an annual payment following the end of the financial year rather than the current quarterly payments.

The agreement reached with the Post Office provides everyone in the Crown network with a ‘one off’ payment of £125 (including part-timers) in lieu of the April to June 2018/19 quarter with July salaries. All members will receive the same payment irrespective of actual performance of the Crown they work in and hours worked. The reality is, due to new metrics, there are currently no agreed targets or measures in place which potentially was a barrier for calculating performance and thus making any bonus payment for Q1. As a consequence of our interim agreement, the payment of £125 for all is expected to be well received by our members, especially as this amount is considerably better overall compared to the corresponding quarter last year when over 70% of Crown Offices received a payment of less than £125.

Our discussions with regards to a new scheme are positive. It has therefore been agreed that quarterly payments will cease from the commencement of Q2 as we anticipate an agreement to introduce a new annual bonus scheme. As a consequence, the next bonus payment following the £125 won’t be until next year which brings it into line with the Admin & Supply Chain date for payment.

Once the new scheme mechanics and design have been fully agreed and deployed, at the payment date for the full bonus (July 2019), the £125 already received for Q1 will be netted off from the total annual bonus payment achieved. Any member leaving the Post Office on VR or via a settlement agreement as a consequence of business driven change will get a pro-rata bonus payment based on new scheme for the period worked during the financial year, less the £125 already paid. As we have confidence that measures linked to a new scheme will be fair and achievable, it is envisaged there will not be any case in which a member will “owe” the Post Office £125. Basically we are confident that all members in post next summer will receive a top up payment over and above the £125.

The following Joint Statement has been issued to our members:

Update on the CSC Incentive Scheme

We are pleased to confirm that following positive negotiations between Post Office and CWU, we have reached an agreement regarding both the structure and payment of the CSC bonus scheme.

We have agreed that for Quarter 1 this year, all colleagues will be paid £125 in July salaries in line with the existing scheme.

We have also agreed that this will be the last quarterly payment under the current scheme because in the future we are going to implement an annual scheme. Therefore the next bonus payment date will be in July 2019 salaries.

Talks are on-going relating to the detail and measures involved in the new annual scheme. We are making progress and hope to be able to conclude talks by the end of September and then communicate the details shortly afterwards. We are confident that the new scheme will be based upon customer service metrics so it is vital that we continue to offer the very best service to our customers.

Once we have agreed full details of the new scheme, we will communicate the plans for implementation. The new scheme will be back dated to 1 April 2018 and the annual payment for your 2018-19 bonus, paid in July 2019 salaries, will be amended accordingly to reflect the payment we have made in July 2018. That means for example, if under the new scheme you qualified for an £800 annual bonus, you would receive a further £675.

We hope that you welcome this positive update regarding a new incentive scheme for CSCs and continue to offer a fantastic service to our customers.

Roger Gale – Network and Sales Director

Andy Furey – CWU Assistant Secretary Postal

Both parties are committed to reaching an agreement on a new Incentive Scheme as quickly as possible and we are making good progress although more work needs to be done to finalise an agreement.

Further developments will be reported.

Any enquiries in relation to this LTB should be directed to Lea Sheridan on 020 8971 7361 or lsheridan@cwu.org.

Yours sincerely



Andy Furey

Assistant Secretary

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