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In my opinion, Thompson is absolutely going to take on the union and the CWU represented grades, after all he now has nothing to lose. I believe that he has orchestrated this situation from the outset because he knows that many of the non staff costs involved in running RM UK are already fixed plus the number of delivery staff required to comply with USO regulations are also fixed therefore the only avenue available is to attack the current Ts&Cs of the workforce.
Anyhoo, when Thompson has succeeded in driving wage costs down to the same level as our competitors (and then departed on a nice fat GLS bonus) we can all expect our parcels to receive the same level of customer service as our competitors currently offer so we can all get used to searching in the wheely bin/hedge/next door neighbours garden for our parcels....lol
Cheers for the reply Anger .IMO he is going to take the unions on that is his strategy and even thou I’m a postman I think he will win and get the changes he wants the share price might drop in the next month but when he gets the changes he wants it will pick up the saying is short term pain for long term gain.Now the reason I’m saying he will win is the postman will struggle to live on 4 days money you only have to look at ispy who has been working OT to cover is losses . In my office OT is banned rounds fail but will go out the next day.I’m sure there are more officers that don’t allow OT . With inflation at10% and going to go higher people can’t afford to strike for long and ST is in for the long haul .Me personally I wil be striking but I’ve only got 10 months until I retire at 60 and I’m lucky enough I can afford to strike but I’m definitely in the minority
ASharkz it is always the case that the workforce have issues with the CEO just to varying degrees and dependant on that CEO's style. Previous incumbents have not communicated enough now we have ST saying too much acording to some.
We have had others accussed of moving too slowly, now its trying to do things too quickly.
You will know I have also said this time feels different and it is because it is the huge change of direction and focus to parcels and the infrastructure and network changes required to accomodate that vision.
I am not surprised by the CWU stance and we only have to look across the country and further afield to see how economies and individulas are struggling. If this was being pursued through a period of low inflation, economic growth, high retail spending it would be perhaps easier to negotiate/agree.
However its not, so either compromise is found or both sides take the hard line and we see what emerges when the dust settles.
In the interim we lose customers, drive businesses to competitors and weaken everybodies position.
Bit of a surprise Blackrock reducing their short reported last night I wonder if they will be changing their hedged position by buying more.
Never a dull moment with good old RMG. I genuinely hope it works out as favourably as it can for all.
Asharkz agree with your post a real crossroads but we still hold a shovel so can and will get out of the hole.
LSE admin thanks for removing the post from Badsterman with the unqualified direct financial advice.
AngerSharkz, "you can personally partake in industrial action indefinitely?"
No, that's not how it works, nor is it legal.
As things stand there are four days of industrial action planned. Any additional industrial action has to be communicated via the union to the employer and will achieve legal compliance provided that a weeks notice is given.
Obviously if only 10% of employees were physically supporting industrial action after the initial four days then that would be counter productive and the union would pull the plug to pursue different options however with two legally successful ballots, (both of which have shown that over 60% of the entire Royal Mail workforce including managers, non CWU employees and the BoD) completed then I would think that the situation would hold firm at least in the short term.
Anger I see you back ST vision for the future but don’t think he is capable of executing it what do you think he should do then to get the future he and you want
@ Anger.
You may not be alone there. Despite your obvious reference to VESA.
Maybe, DK thinks like you?
@ simx.
A valid point.
And probably one that cannot be answered, yet.
It will be interesting to see the co-operation from staff though, if, when these new changes are implemented.
Not forgetting of course, that RMG are watching you.
@ Anger.
"""I would imagine so? Do you not think at this point the chairman, the board (and probably a large 22% shareholder) might be backing Thompson?"""
We'll have to disagree there. Are you fully supportive of Thompson? You've been quite vociferous here about bonuses and dividend payments, that you didn't necessarily agree with. Two of the things that have led to the first ballot and possible subsequent strike action. In regard to the whopping pay rise.
AngerSharkz, I believe that the percentage rules only relate to the ballot itself. A minimum of 50% turnout with a majority in favour.
Angersharkz, I agree about the drop off and return to work, people have got mortgages, children, energy bills, a strike now is financial suicide, but here we are. Not sure what the position is for the returnees, since if they stop striking would that mean workers have agreed to the implementation of managements conditions? which would mean ST gets what he wants.
@ Arsenal.
I'm surprised you need to ask that question. But i'll answer it.
Yes!
While the exceptional pay rise got the expected turn out and result, i believe it to be secondary.
T's and c's are where the real problems lie. Put the two together? Not a good mix.
You may be aware that i'm building up a strike fund, courtesy of RMG. I'm looking at a grand by the 26th. So, eleven days paid for. Not great, but a start. It's odd that because of failure to recruit, i've managed to build this small pot up. And without working over my time.
All of my workmates feel the same, so the long haul it is.
Do you think Thompson will still be in a job at the end of September, if these first 4 days of strikes go ahead?
Isleworth are you getting ready for the long haul mate as it seems like you pr mate ST is ?
Anger, I think management and CWU are both committed to a strike, which could go on, a day a week here and there, for a good while, with posties making up some of their lost wages with overtime. CWU votes have been overwhelming, showing a real depth of commitment, and Management see this as an existential moment for the business. I don't see any common ground between them. I think ST will be inflexible on the changes to work practices deemed necessary, but may have some latitude on the wage increase. Deja vu, it's all going a bit Rico Back, whilst on the continent GLS continue to sail serenely on making money so quietly you'd hardly know they were there..... I wonder when we will be hearing from them...
@ Phunt.
That is a pathetic turn out.
I would hope that the 28% know exactly what they are, in effect, voting for.
As opposed to just not being bothered. The first ones to moan!
Ispy thanks no you've not missed anything re meeting I thought with time running out before IA it would have been deemed more urgent.
@ JBT.
If what i was told is right, it's the long haul. It would have to be a quite spectacular agreement to have these vans, either laying around or using up juice, when they would not be needed. RMG are paying casuals when they are not needed, so anything is possible, i suppose.
I haven't seen any date agreed for the meeting. So, i would assume that a date would have to be mutually agreed. Not necessarily a big issue, if nobody has actually called it off. It's just been suspended until next week.
Or have i missed something?
Ispy it does look like its preperation for the long haul or maybe they just got a great deal to have them for Autumn and Christmas pressure. Any news on the non meeting. I am sure most would agree its very disappointing they cant get into the same room and at least communicate.
News reaches me that the hire vehicles brought in for the agency casuals to cover IA, are on a 6 month lease.
This is from a mail centre manager, not a COM.
""IF"" this is correct then surely that shows everyone what Thompson expects, going forward.
Unless of course this is standard practice.
Ballot Result. Turnout 72.2 yes 98.7
JB. Of course the preference is two opposing sides both trying to get a good outcome. Not two sides intending to crush the other. I feel the more satisfying outcome is for both to feel they fit something they wanted.
However if prior to the meeting I heard my opposite number mouthing off. I would tend to approach the meeting as an adversary. That unfortunately is I feel the current status. Of course it will all come out in the wash.
From an investors perspective its an opportunity. I prefer an easy life but if I have to get stuck in at least it gets the adrenalin pumping.
Best wishes for a good outcome.
Redceo totally agree time will tell if he is going to achieve what he hopes and I would say we will know in next 6 - 8 weeks whether his tenure is likely to continue or not. I expect we may get an update on the CWU session at 4pm about the on/off meeting as well as the ballot result.
JB "It seems inevitable to me now that ST will play this his way"
The position he was given carries a lot of responsibility. He earns the big bucks and makes the big decisions because the tail must never wag the dog. Have they employed the right man, time will tell. For sure he stands or falls on those decisions.
He has stood firm in my opinion, let's see this through to the bitter end. Will it be what the CWU members envisioned at the outset. Somehow I doubt it "turkeys voting for Christmas" ?
Just looked at CWU facebook page. News of no negotiations this week was released an hour ago, which corresponds with the brief leap in the SP. Confirms that some buyers see this as good news, and a taste of what markets reaction will be if GLS is separated from RM.