Unions vow to fight Royal Mail cuts to 700 managerial roles

[TrueBlueTerrier]

https://www.parcelandpostaltechnologyin ... roles.html

Royal Mail has unveiled plans to cut 700 managerial positions as part of a restructuring exercise that will deliver an annualized benefit of around £40m (US$54m), with around £30m (US$40m) coming in FY 2022-23.

The company said that it was looking to streamline operational management to improve focus on performance at a local level.


Simon Thompson, the Royal Mail CEO, said, “We have today entered into formal consultation on a management reorganization to further streamline our operations and, at the same time, improve focus on local performance. We are committed to conducting the process sensitively, working closely with our people and their representatives. We have a track record of delivering change through natural turnover, redeployment and voluntary redundancy, wherever possible.”

The announcement was included in the publication of Royal Mail’s third-quarter results, which demonstrated a softening in the parcel delivery landscape. For the period running from October to December 2021, domestic parcel volumes grew by 33% versus the same period in 2019-20, but declined by 7% year-on-year.

Keith Williams, chair, Royal Mail, said, “We expected some decline in parcel volumes given most retail stores were open during the period, unlike last year. However, the trend toward customers wanting more parcels remains, and responding to that change efficiently is key. Our domestic parcels business in the UK has seen demand increase by around a third over two years, as has our GLS business across its markets.

“The past few months have demonstrated that the challenge for Royal Mail is to improve both quality and efficiency. Looking forward, the delivery of our transformation and modernization plans remains incredibly important in light of the fast-paced change we are seeing and ongoing inflationary pressures,” he continued.

Thompson added, “With the rise of Omicron, absence has been around twice pre-Covid levels, with around 15,000 staff off sick or isolating in early January. Thankfully, this is now improving. We are resolutely focused on addressing these issues that have affected our service in some parts of the country. Year to date we have spent more than £340m (US$460m) on overtime, additional temporary staffing and sick pay, as well as providing targeted support for the offices most impacted. We have taken steps to maintain as comprehensive a service as possible, while keeping our people and customers safe.

“Higher absence has also been a headwind to delivering our productivity targets, but our Q3 performance gives us confidence in the delivery of adjusted operating profit for Royal Mail, before the cost of the reorganization announced today, in line with previous guidance at around £500m (US$676m).”

Royal Mail has said that the proposed changes in management structure are subject to statutory consultation with unions, and that it will also work with the Communication Workers Union (CWU).

Unite has said that it plans to fight the job cuts after a ‘£400m (US$540m) giveaway to key shareholders’. The union said its members were being made the scapegoat for the failure to maintain deliveries during the pandemic, which has led to the possibility of fines from the regulator, Ofcom. It also said that the restructuring announcement could affect up to 900 of its members in the delivery division, and that the threat of an industrial action ballot was now on the cards.

Sharon Graham, Unite general secretary, said, “Coming on top of a record turnaround in the company’s fortunes, which resulted in the board handing over a £400m (US$540m) giveaway to certain shareholders, this is cold comfort for those long months when postal employees were being badly hit by coronavirus at its worst.

“Unite will be giving maximum support to our members in fighting these unjust job cuts, and this includes the possibility of an industrial action ballot. Now is the time for the top executives to reconsider their proposals.”

Gary Sassoon-Hales, chair of the Unite CMA FTR committee, said, “We are appalled with the announcement today. The Royal Mail is running out of excuses when it comes to the rationale for management reviews. Our members can be forgiven for feeling that those working from home have been plotting to remove those who turn up and have ensured the future of this business during the pandemic.

“Unite CMA has not agreed with these proposals and will now enter into consultation. We will be feeding back the outcome of the consultation to our members, who will then decide on what action to take next.”

Mike Eatwell, Unite national lead officer for the CMA, said, “Unite managers were no more immune from the risks of the pandemic than anyone else, but that did not stop them helping on delivery rounds when postal operatives numbers were severely depleted. The current leadership team’s fixation on headlines to shore up the share price is behind this latest attack on our members’ job security and we need to respond accordingly.”

Royal Mail Group FY 2021-22 results will be published on May 19, 2022.

[mpl1111]

Dear Unite, fight all you want but what you don't see is more chiefs than Indians. In the delivery network with some serious questions regarding work rate and work ethics. The simple fact is the management structure is overloaded and needs slimming down. A great way forward for the structure of the delivery network, long overdue.

[ted_e_bear]

The phrase pissin in the wind immediately springs to mind

[Phantom]

They'll never strike, RM will put forward a carrot and they'll take it.

[CharlesG]

Every Manager role will have to be reapplied for , for ALL positions below SDL level.
Delivery Office managers will be know known as Customer Operation Managers (COM)
Offices with 2/3 managers will be streamlined and possibly many more units will have a single COM.
This will mean COM X in an office covering 80 employees is on same wage as COM Y in an office covering 20 employees. Seems unfair to be honest. There are alot of good DOMs out there but also many who i think ‘How are you a manager?’

Surely the fact all DOMs would have to reapply for positions possibly on a lower salary is in effect a fire & rehire scheme polished up. This is an effort from Royal Mail to lessen the terms and conditions of management which i find it shocking how brazenly Royal Mail can do this.
I know management would never strike (half of them are not in the union) but i wish they would

[teesdale]

In mail centres they should move to a working team leader role so we could finally stop this manager doing nothing but standing staring at you hour after hour. If you are lifting heavy bags or boxes the worst thing you want is to look up and see someone doing nothing. What kind of a person thinks its ok to apply for such a job. Once the CWU achieves five hours off the working week working team leaders should be allowed. The solution is they have no union but they receive some form of protection from royal mail.

[N|M]

In mail centres they should move to a working team leader role so we could finally stop this manager doing nothing but standing staring at you hour after hour. If you are lifting heavy bags or boxes the worst thing you want is to look up and see someone doing nothing. What kind of a person thinks its ok to apply for such a job. Once the CWU achieves five hours off the working week working team leaders should be allowed. The solution is they have no union but they receive some form of protection from royal mail.

Not 100% sure on this but the Manager standing watching is watching due to not been able to help as in some mail centers the union do not allow it as its taking a job away from someone, They are also there to oversee the area they are meant to be managing.

I know its annoying see the manager standing in the same place all shift drinking etc, but unless changes are made in all areas to the way they work and can help out, then they will just be supervising the staff on shift.

[Tman]

Surely the fact all DOMs would have to reapply for positions possibly on a lower salary is in effect a fire & rehire scheme polished up.

RM have done this more than once in the past. It's their way of clearing the unemployable useless dead wood, and even if reassigned to a lower banded job they mark time with their salary until the lower pay grade catches up.

[paulus103]

Every Manager role will have to be reapplied for , for ALL positions below SDL level.
Delivery Office managers will be know known as Customer Operation Managers (COM)
Offices with 2/3 managers will be streamlined and possibly many more units will have a single COM.
This will mean COM X in an office covering 80 employees is on same wage as COM Y in an office covering 20 employees. Seems unfair to be honest. There are alot of good DOMs out there but also many who i think ‘How are you a manager?’

Surely the fact all DOMs would have to reapply for positions possibly on a lower salary is in effect a fire & rehire scheme polished up. This is an effort from Royal Mail to lessen the terms and conditions of management which i find it shocking how brazenly Royal Mail can do this.
I know management would never strike (half of them are not in the union) but i wish they would

I'm an opg and I feel very sorry for people affected by this shock.
This has made managers across the business question their future with RM.

Team Leaders plan doesn't work as they don't do the paperwork required for a managerial role - which over time is complete rubbish for everybody involved e.g. sick not handled, favouritism, arguments, traffic not measured, hours fiddling, OT arguments etc.

The managers that leave will be some of the best in the business and soon be working for competitors (this is what happened last time)

[SpacePhoenix]

Team Leaders plan doesn't work as they don't do the paperwork required for a managerial role - which over time is complete rubbish for everybody involved e.g. sick not handled, favouritism, arguments, traffic not measured, hours fiddling, OT arguments etc.

Only needs one manger to do the paperwork

[paulus103]

Yep, that is right and that is how Amazon do it.
They have one manager doing whole sick for their plant.
But
Difficult when managers have their own jobs to do work-wise and staff are assigned to the manager (in theory) in their respective work area.

With the 1 team leader example at my plant, it's not working well.
He gets the mail out which is good but everything else falls to one side - there are numerous problems.

[jack~jack]

I've always wondered why they aren't part time, as our delivery office manager goes straight home as the last postman goes out on delivery. A couple of years ago I was robbed on delivery, I phoned the Dom, no answer, so I phoned the mail centre and asked to speak to a manager. The receptionist burst out laughing " no managers here after midday.

[SpacePhoenix]

Yep, that is right and that is how Amazon do it.
They have one manager doing whole sick for their plant.
But
Difficult when managers have their own jobs to do work-wise and staff are assigned to the manager (in theory) in their respective work area.

With the 1 team leader example at my plant, it's not working well.
He gets the mail out which is good but everything else falls to one side - there are numerous problems.

In a MC a good chunk of the paperwork that a DOM deals with in a DO will be dealt with by the resource unit

[paulus103]

Yep, that is right and that is how Amazon do it.
They have one manager doing whole sick for their plant.
But
Difficult when managers have their own jobs to do work-wise and staff are assigned to the manager (in theory) in their respective work area.

With the 1 team leader example at my plant, it's not working well.
He gets the mail out which is good but everything else falls to one side - there are numerous problems.

In a MC a good chunk of the paperwork that a DOM deals with in a DO will be dealt with by the resource unit

Is that the writing room?

[SpacePhoenix]

Yep, that is right and that is how Amazon do it.
They have one manager doing whole sick for their plant.
But
Difficult when managers have their own jobs to do work-wise and staff are assigned to the manager (in theory) in their respective work area.

With the 1 team leader example at my plant, it's not working well.
He gets the mail out which is good but everything else falls to one side - there are numerous problems.

In a MC a good chunk of the paperwork that a DOM deals with in a DO will be dealt with by the resource unit

Is that the writing room?

Where they deal with processing leave applications, putting reserves against vacant duties so all duties are covered for a shift, dealing with overtime requests, dealing with sick, etc