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Newdealz DW briefly mentioned the communication from the business but didn't go into any detail at all. IMO that would have left him exposed to having to tell the members which parts he thought were acceptable or not and quote counter requests. His M.O. now seems to be keep everyone in the dark. He also mentioned another communication that was issued by the business 15 minutes before the live session but again didnt elaborate. We may get sight of that today.
IMO Option A if it is pushed out to a vote will be favoured as the 6% will kick in now and will be applied to all allowances and overtime and this may help improve the current service levels. With government forecasts of inflation dropping significantly this year 6% will help some now.
T2K I agree with you. There seems extraordinarily little scope for the CWU to win more concessions over the Easter weekend. DW did say there were still some back channels open. Is that going to deliver anything significant when intensive talks for weeks and months and ACAS facilitated talks have gotten us to this point?
I can't work out what stalling for another few working days will achieve. It sounded to me that DW was paving the way to say this is the best we have so you the membership can now have a vote. I can understand the anger from some of the frontline as this "win the ballot win the dispute" success seems quite hollow.
Like another 1k plus viewers I was able to switch the update off after 40 minutes as they were just repeating previous messages. I have never seen DW look so uncomfortable it felt like he had been given a script from ST to read out. Maybe they will squeeze out a few more tweaks here and there but certainly felt like there was little movement to be expected on the big issues but difficult to be sure as it was so light on detail or counter proposals. Very difficult for members to feel any more reassured from that interview and it will be next week before anything is found to be acceptable for the exec to put forward to ballot.
Bonus schemes are used in most areas of the business. They can be useful to incentivise quick action on local and national objectives. Any bonus I have been party to has had very tight measurable deliverables. What I have noted with interest is the profit-sharing scheme in the latest revised pay offer. Twenty percent of operating profit is to be shared with eligible employees. Of course, like any managers' scheme the targets will be worked up and must be stretchable but achievable.
Given where we are the Options A and B in the new offer seem at least worthy of CWU exec putting to their membership. Of course, more details of T&C changes may be expanded on in tonight's interview. I am not sure how any call for further IA strike days or work to rule will improve this further but let's see.
AngerS thanks, superb break in far east and didn't miss the fun on here. Thanks for summary my Initial thoughts are the business have arrived at the point they wanted and VESA lurking with intent. CWU exec carrying on regardless but members getting increasingly vocal about lack of progress and detail from them, tonight's session may clarify.
This review document gives tons of facts. Section 3 is useful IMO. From what I have seen truly little has been said about the commercial viability aspect. The USO will still be in place for years to come but not as straight forward as saying the business must provide regardless. Ofcom uses lots of IDS/RM financial information and it accepts that the business should be able to report a commercial return of between 5%-10% primarily looking at EBIT data. This is not a target but an indicator of sustainability.
If the business is presenting, clear data to show the USO part of the business is loss making who will fund keeping the existing levels? The government? Of course IDS must demonstrate financially robust plans to OFCOM but perhaps the government of the day will have to cop up £365m PA plus 5% margin for provision.n.
https://www.ofcom.org.uk/__data/assets/pdf_file/0023/240971/Statement-2022-Review-of-Postal-Regulation-Statement.pdf
Use of the Reported Business financeability EBIT margin as our measure of
the commercial rate of return
We considered that our approach from the 2017 Statement remained appropriate.100 Royal
Mail, in its response to our March 2021 call for inputs, considered that the financeability
EBIT margin approach should be retained. Royal Mail stated, “We agree with Ofcom that
the EBIT financeability margin, at the Reported Business level, is a key metric providing
insight on the financial sustainability of the Universal Service”.101 Therefore, we proposed:
to retain the use of the EBIT margin to assess the commercial rate of return earned by
the universal service;
that the Reported Business remains the entity that represents most accurately the
activities of the universal service, and therefore it is the appropriate level at which to
measure the financeability EBIT margin;
that a financeability EBIT margin in the range of 5 to 10% remains consistent with a
commercial rate of return for the Reported Business, with the intention that it is a first
order indicator of sustainability and should not be interpreted as a ‘target’ return
range; and
to continue to evaluate the recent actual and the long-term forecast financeability EBIT
margins of the Reported Business and the underlying revenues and costs.
Just catching up and we apparat to be at yet another pivotal point. I have only skim read the posts from the last 3 weeks and got the main gist. It will be interesting to see what CWU propose next tonight. Reading some comments, it does appear many of the employees have well and truly had enough of both the business and CWU.
We are having the same discussions around USO, Financials, Revisions, Pay Offer, bonus schemes etc etc. A few comments from me to follow.
AngerS I read the FB on a regular basis, and it really is telling that many members are so frustrated they are making the comments we are now seeing. Many are saying it has been a waste of time as many of the changes the business were proposing are already in place or happening now. I don't think there would be that much appetite for any further strikes, and lots are now saying get a decent pay deal done now as the CWU are just facilitating the changes.
There are a lot of issues still to be resolved in terms of revisions as they stand, and the escalation process will be very well used. Of course, the bigger network changes have still to come.
I expect a deal to be made by the end of this week with a % pay deal agreed and statements around ongoing work on T&C's.
I am on holiday for the next 3 weeks so won't be commenting on any deal or impacts. I hope all are satisfied with the outcome. GLA
Oligarch I get what you are saying, and there is a good case based on the change of terms - £6k for anyone being able to withdraw their application but why would either party want to stop this process if the business banking these savings as it helps fund things like pay deals or to stop those still happy to leave? If it creates a massive resourcing issue in a particular office perhaps that would be a factor as well. More details will perhaps surface. I may be missing something glaringly obvious.
No real surprise I guess, and it hasn't gone down very well with lots of the members on CWU FB page. Meanwhile the business is continuing to implement changes. Some in offices where it would appear there has been little or no engagement as not every office will have a rep. It's reported that some offices have put disagreements into the escalation process.
In those where the changes have gone ahead hopefully it's because the local managers and reps have found agreeable/workable solutions.
No news from the talks that were hoped to be concluded last night. Keeping people in the dark is never good. Meanwhile all the changes are being worked through and hopefully with the local CWU reps assisting some positive results are being produced. I guess after so long we just need to be a bit more patient to hear the outcome of the pay/t&c's talks.
Broch I agree it will be a two year deal although I think it will be closer to 9% for this year back dated to April 22 and and approx 4.5% for next year. It also depends what changes are included as part of the deal. The 30 minutes later start time will be for now as it has been mentioned the bigger Network changes will impact start/finish times. Not sure what you mean by No commit to deliver but business is looking for QoS to be hit and office clearance plans so will impact on resource levels and overtime commitments. Sick leave will be changed not sure what the qualifying levels will become but should be fair and reasonable. I thought the business had already said voluntary Sundays only for now but guess that could mean recruitment for Sundays only or minimal agency.
Let's hope news comes soon and it is acceptable to all.
An aspirational deadline of Sunday 12th is set to have an agreement on pay and T&C's. Bit of an odd deadline IMO but guess it's to give as long as possible to reach an outcome. Not sure when an update can be expected Sunday night or 0700 RNS on Monday, or COP Monday. It is unlikely we will hear anything tonight even just to say talks will/are continuing over the weekend.
Normally we see a few rumours on here but it would appear even those with contacts aren't hearing anything.
Citadel drop down. Thats twice recently they have been in and out over a couple of days.
https://shorttracker.co.uk/company/GB00BDVZYZ77/
Redceo I agree. Also, it is worth saying there are countless opportunities within the business. Jobs in a multitude of areas as you can imagine in a business this size. Of course, people can stay doing a job if they choose ah that word again choice.
Redceo our posts crossed but again with similar sentiment. Saw your message re shorts Citadel still playing around and in and out 2 or 3 times over last week or so. News expected on pay deal on Frida. Some rumours around suggesting it may only be backdated to October which would be a surprise but confirm Dave Wards statement about the financial state of the business.
Broch yes it is difficult to predict where this share price goes but I am sure it hasn't stopped people from making plenty of money from it. It's sad to say but the striking posties have probably lost as much if not more than some on here and unfortunately for some they may have had the double whammy of being shareholders as well.
Having said that most shareholders know how this goes around in cycles around the pay deal/negotiations/threat of IA/strikes. Thankfully, the growth part of the business has little government regulation, in fact with the business looking to increase parcel deliveries they will exceed any obligations. Yes, USO letter products are an issue at the moment but as you can see from the fabulous joint agreement the business will ensure these are met.
It would appear DK/Vesa don't see it the same as you and likewise as adults we can all make and live by our own decisions, but we should be thankful for your generosity of spirit to take your time to come on here and try and help shareholders see the error of their ways.
Scamp a very informative and excellent post and I agree with the overall sentiment. I have said many times the union does have a role to play but when they try to dictate/give authority to the business on what they can and cannot introduce they go above their remit IMO. Yes, consult and take input but unless there is a clear reason or alternative it is the business manager's responsibility to make these decisions.
The CWU exec can say they have made changes but in my own experience it is often not without a battle and delay and certainly making local changes can be like wading through treacle.
The joint statement is the bones of a way forward and hopefully the business can be rebuilt and recover.
Dynamofc I have asked a few ex colleagues including 1 that have met him on a site visit and they said he is quite easy to talk to and extremely focused and genuinely interested. I didnt specifically ask if they had confidence in him. I personally think he has done what he wanted to do, and it is likely someone else will come to do the rebuild.
I don't think anyone within the business would have told him/them to admit they made mistakes, but most people do and if you can't take constructive feedback and change tack whilst still getting to the outcome you desire it is a reflection on you. I don't think the government would have gotten involved, certainly not when a select committee is still to report. I guess the only possibility would be DK if he is pulling someone's strings. Only a guess of course, have you any suggestions?