Royal Mail PLC Result of CWU ballot for industrial action (6135S)
03 Oktober 2017 - 6:50PM
UK Regulatory
TIDMRMG
RNS Number : 6135S
Royal Mail PLC
03 October 2017
3 October 2017
Royal Mail plc
Result of CWU ballot for industrial action
Royal Mail (RMG.L) has today received notification from the CWU
of the results of their ballot for industrial action.
Royal Mail is very disappointed by the announcement that CWU
members have voted (89 per cent Yes) in favour of taking industrial
action. However, we note that with a 74 per cent turnout - and
taking into account frontline employees who are not union members
(18,000) - 57 per cent have backed a strike.
A ballot result for industrial action does not necessarily mean
there will be industrial action. Royal Mail is committed to further
talks as a matter of urgency, to reach agreement with the CWU.
There are no grounds for industrial action. We want to reach
agreement. Post Office is a separate business from Royal Mail and
its employees are not involved in this dispute.
In 2013, Royal Mail and the CWU committed to the Agenda for
Growth (AFG) - a legally binding agreement. Royal Mail has brought
to the CWU's attention the contractual dispute resolution
procedures included in the AFG, which both sides are required to
follow once instigated. They escalate to independent external
mediation, which we expect will take close to Christmas to be
completed, and may be longer. We believe these dispute resolution
procedures must be followed. The union cannot take industrial
action until they have been completed.
Industrial action is damaging for our business. It undermines
the trust of our customers. It makes it harder to pay for the great
terms and conditions we provide for our employees. National
industrial action means the current offer from Royal Mail,
including on pensions, will be taken off the table.
What we have offered
Under its proposals, Royal Mail would continue to provide the
best pay and terms and conditions in the industry by some distance.
We are not proposing to change our core terms and conditions or our
commitment to a predominantly permanent workforce. Many competitors
pay around the National Living Wage. Royal Mail pays 45-50% more
than this.
We have offered to continue working towards a new pay deal(1) ,
including an increase of up to 5% over two years, depending on
productivity improvements, flexibility and a small number of
trials. We are offering to replace our Defined Benefit pension
scheme - the Royal Mail Pension Plan (RMPP) - with another type of
Defined Benefit scheme. RMPP members would also have the choice to
join a Defined Contribution scheme instead if they wished to do so.
We have also proposed significant improvements for members of the
Royal Mail Defined Contribution Plan, with a maximum Company
contribution of 10%. We are also discussing how we can be more
flexible to offer the services our customers want, including next
day delivery for items ordered late in the evening.
Customers can find more information at www.royalmail.com.
(1) The proposed offer applies to employees in CWU represented
grades in Core Operations, Logistics (excluding RM Fleet),
Engineers, RMSS and Royal Mail International. It is under
discussion between us and CWU and is subject to contract. Separate
negotiations will take place for other CWU grade employees within
Royal Mail as per current arrangements.
Investor Relations
Catherine Nash
Tel: 07436 560910/020 7449 8183
Email: investorrelations@royalmail.com
Media Relations
Andrew Moys
Tel: 07841 803 321
Email: andrew.moys@royalmail.com
Peter Tilley
Tel: 07841 803 316
Email: peter.tilley@royalmail.com
Company Secretariat
Kulbinder Dosanjh
Tel: 020 7449 8133
Email: cosec@royalmail.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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