Royal Mail PLC Update on negotiations with the CWU (6109Y)
06 Dezember 2017 - 5:41PM
UK Regulatory
TIDMRMG
RNS Number : 6109Y
Royal Mail PLC
06 December 2017
6 December 2017
Royal Mail plc
Update on negotiations with the CWU
Royal Mail (RMG.L) is today providing an update on the pay and
pensions negotiations with the CWU.
The parties have now received the report prepared by Professor
Lynette Harris, who has mediated talks between Royal Mail and the
CWU under the dispute resolution procedures set out in the Agenda
for Growth (AFG). The Company thanks Professor Harris for her time
in mediating the talks and preparing the report.
The mediation process was helpful in bringing Royal Mail and the
CWU together to advance the discussions. Mediation has helped both
parties to better understand their respective positions.
The mediator's report made a number of recommendations. These
are not legally binding on either side but have been useful in
framing further discussions. Royal Mail and the CWU are continuing
talks with the aim of reaching agreement on the full range of
issues under discussion. Agreement on certain issues is more
advanced than on others but all issues remain open for negotiation
and final agreement. Further announcements will be made in due
course.
A summary of the mediator's recommendations is set out
below.
Pensions
-- Royal Mail and the CWU should commit in principle to the
future introduction of a Collective Defined Contribution (CDC)
scheme with a Defined Benefit element.
-- To support the introduction of a CDC scheme for all, Royal
Mail and the CWU should establish a Pensions Forum. The Forum will
have responsibility for lobbying the Government to make the
necessary legislative and regulatory changes so that a CDC scheme
can be established, and for overseeing its governance.
-- In the meantime:
o For members of the Royal Mail Pension Plan (RMPP), Royal Mail
should implement - from 1 April 2018 - a Defined Benefit cash
balance scheme on the terms already proposed by the Company.
o In addition, existing Royal Mail Defined Contribution Plan
(RMDCP) members with five years' or more continuous service in the
standard section of RMDCP should have the option of joining the
Defined Benefit cash balance scheme.
o Royal Mail should auto-enrol current and future members of
RMDCP to the top tier of contributions (10% from the Company and 6%
from the member).
Pay and the working week(1)
-- From April 2017, an increase of 2.6% including base pay, overtime and allowances.
-- From April 2018, an increase of 2% to base pay.
-- During 2018-19, a one hour reduction to the working week
(currently 39 hours) on the condition that Royal Mail and the CWU
work together on a range of initiatives, including delivery methods
trials, automated hours data capture and later delivery times.
Delivery times
-- Last delivery time should move back by 30 minutes to 3.30pm
in urban areas and 4.30pm in rural areas.
Royal Mail and the CWU working more closely to advance the
Agenda for Growth objectives
-- Royal Mail and the CWU need to work more closely together to improve working culture.
-- Review the Agenda for Growth agreement in 2019, as planned.
(1) The negotiating group that is covered by the mediator's
report applies to CWU represented grades in Core Operations,
Logistics (excluding RM Fleet), Engineers, RMSS and Royal Mail
International. It is under discussion between us and the 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
Peter Tilley
Tel: 07841 803 316
Email: peter.tilley@royalmail.com
Company Secretariat
Kulbinder Dosanjh
Tel: 020 7449 8133
Email: cosec@royalmail.com
LEI 213800TCZZU84G872M70
This information is provided by RNS
The company news service from the London Stock Exchange
END
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