TIDMRMG
RNS Number : 3666Z
Royal Mail PLC
05 February 2014
Royal Mail Plc
5 February 2014
ROYAL MAIL WELCOMES CWU BALLOT RESULT ON GROUNDBREAKING
AGREEMENT
Royal Mail plc (RMG.L) is pleased that Communication Workers
Union (CWU) members have voted overwhelmingly in favour of a
ground-breaking agreement on an agenda for growth, industrial
stability, pay and protections. Royal Mail plc's Board has also
approved the agreement.
The Agreement, announced as agreed in principle on 9 December,
was recommended to its members by the CWU and is believed to be the
first of its kind in the UK. It includes legally-binding terms
covering industrial stability and protections, together with a
three year pay deal. The three year pay deal includes a three per
cent increase this year. The Agreement covers a total of 139,000
employees in Royal Mail(1) .
The Agreement builds on the previous "Business Transformation
2010" agreement and other existing agreements. It represents a
joint commitment to radically improve industrial relations and
create a can-do culture in the interests of customers, employees
and the company.
Moya Greene, Chief Executive, Royal Mail plc, said: "I am
pleased that our people have voted in favour of the terms of the
agreement. This is the first critical step to provide long term
stability and certainty for Royal Mail, our employees and our
customers. Now the hard work starts. Working together we will
create a strong foundation for the continued success of our
business."
The Agreement underlines the importance of the continued
implementation of Royal Mail's modernisation and transformation
programme across its operations. Royal Mail is adapting its core
network to accommodate an increasing number of parcels. This is one
of the biggest transformation programmes in UK industry and it is
changing every aspect of the way our people work. The Agreement
emphasises that efficiency is a prerequisite for growth.
Royal Mail and CWU have committed to create an agenda for
growth, building partnership and participation across the company.
Both parties will work together to develop and implement business
strategies, respond to competitive challenges and develop new
approaches to improve efficiency. There will also be joint Royal
Mail/CWU training programmes to deliver industrial stability.
The Agreement also provides ongoing legal protections that
benefit Royal Mail and employees. The industrial stability
framework sets out a new approach to resolving workplace issues at
a much faster pace and without disruption. Defined processes and
strict timescales will be applied to resolve any disputes. New
mediation procedures will introduce additional expertise and help
reach agreement, with internal processes escalating automatically
to independent external mediation as required.
The protections include: the maintenance of existing terms and
conditions of employment; a commitment to retain a predominantly
full-time workforce; no additional franchising or outsourcing; and
an objective to continue to manage change without recourse to
compulsory redundancy.
Both parties will now proceed to implement the various elements
of the Agreement.
CWU members also voted to accept a separate Pensions Agreement.
This reconfirms the amended proposal for the Royal Mail Pension
Plan, which followed a consultation last year, and sets out Royal
Mail's commitment to make higher employer contributions to the
Royal Mail Defined Contribution Plan.
The implementation of the pay and pensions agreements does not
change the financial outlook for Royal Mail plc or our medium term
objectives.
Ends
For more information contact
Media Relations
Mish Tullar 07423524154
Julie Pirone 07711 446358
Investor Relations
Catherine Nash 020 7449 8297
Email: investorrelations@royalmail.com
Notes to editors
1 The agreements on pay, industrial stability and protections
apply in respect of all CWU represented grades in Royal Mail Group
Ltd, including Royal Mail Core Operations, Logistics, Engineers,
Fleet Maintenance Services and Royal Mail International, with some
minor variations for other employees including those in Parcelforce
Worldwide.
About Royal Mail plc:
Royal Mail plc is the parent company of Royal Mail Group
Limited, the leading provider of postal and delivery services in
the UK and the UK's designated universal postal service provider.
UK Parcels, International and Letters (UKPIL) comprises the
company's UK and international parcels and letters delivery
businesses operating under the "Royal Mail" and "Parcelforce
Worldwide" brands. Through the Royal Mail Core Network, the company
delivers a one-price-goes-anywhere service on a range of parcels
and letters products. Royal Mail has the capability to deliver to
more than 29 million addresses in the UK, six days a week
(excluding UK public holidays). Parcelforce Worldwide operates a
separate UK network which collects and delivers express parcels.
Royal Mail also owns General Logistics Systems (GLS) which operates
one of the largest ground-based, deferred parcel delivery networks
in Europe.
The Agreement - key elements
1. Legally-binding contract
A Royal Mail contract withthe CWU to ensure industrial stability
and provide protections. These include:
Industrial stability(+)
- A new approach to resolving workplace issues at a much faster pace and without disruption.
- A joint commitment to radically improve industrial relations and create a can-do culture.
- Defined processes and strict timescales to resolve disputes.
- New mediation procedures will introduce additional expertise
and help reach agreement. Internal processes escalating
automatically to independent external mediation where a dispute
cannot be resolved internally.
- Joint Royal Mail and CWU trainingprogrammes to deliver industrial stability
Protections(+)
- No zero hours contracts for employees.
- Current employment model of a predominantly full-timeworkforce
in Royal Mail core operations continues.
- No material change to current structure ofthe company in
relation to delivery of the Universal Service.
- Maintaining the objective of delivering change withoutrecourse to compulsory redundancy.
- No additional franchisingor outsourcing.
These legally-binding undertakings on industrial stability and
protections are ongoing. The protections are subject to review - at
periodic reviews starting from January 2019. Royal Mail also has
the right to earlier termination of the protections in exceptional
circumstances, such as a threat to the financial sustainability of
the business. Under certain circumstances, including the breakdown
of industrial stability, both parties have the right to earlier
termination of the legally-binding undertakings.
2. Participation
- Both parties will work together to respond to competitive
challenges and develop new approaches to improve efficiency
- Royal Mail and CWU will work together to develop and implement business strategies.
- Anewly created "Growth Forum". Three seniorexecutives from
bothparties, including theCEO and the CWU's Deputy General
Secretary, to drivechange across the company.
3. Pay
A three-year pay deal:
2013-14
- 3.0% basepay increase, backdated to 1 April 2013.
- GBP200 lump sum paymentfor each full time eligible employee
(pro rata for part- timers) inpost on 1 October 2013, in
recognitionof business progress. This was paid before Christmas in
addition to any Christmas bonus.
- Additional increase in the over 10 hours overtime rate(++) .
- Scheduled attendance payments during periods of annual leave will be extended(++) .
2014-15
- 3% basepay increase.
2015-16
- 2.8% basepay increase. Subjectto review, ifinflation is below 2.3%or above3.3%.
The increases over the three year period apply to the usual
allowances and overtime payments.
4. Pensions
- The Agreement reconfirms the amended proposal for the Royal
Mail Pension Plan (RMPP), which followed a consultation earlier
this year. Royal Mail has agreed to make higher employer
contributions to the Royal Mail Defined Contribution Plan.
- No further changes to the RMPP until at least March 2018,
subject to certain conditions. Any proposed changes would be
discussed under a joint review process with the CWU.
(+) All subject to the detailed provisions of the
legally-binding agreement.
(++) Applicable to employees in the Royal Mail Core Operations
Network.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCUVRORSVAURAR
Royal Mail (LSE:RMG)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Royal Mail (LSE:RMG)
Historical Stock Chart
Von Jul 2023 bis Jul 2024