Glosamal - Pensions & Liberalisation

TO ALL BRANCHES WITH POSTAL MEMBERS

Dear Colleague

CWU Campaign Update - Pensions/Government Review

This is to advise Branches of a number of meetings/initiatives that have been taking at national level since Annual Conference on our campaign on Pensions, the Government Review of Competition and the major industrial issues facing us.

Meeting with Pat McFadden, Minister for the Post Office

Dave Ward DGS (P) met with Pat McFadden on 1 July 2008. He made clear that although the Union was more than ready to deal with change and modernisation, there was no prospect of progress unless there was a new deal on pensions. He pointed out that the Government had a responsibility to employees of the company they owned in this regard. They also discussed the Government Review and what the CWU hoped to get out of this.

Meeting with Mark Higson, Royal Mail Letters Chief Executive

Dave Ward met with Mark Higson on 2 July. He stressed that the Union was up for embracing a deal on modernisation but that in parallel we would have to find a new resolution on pensions. Mark Higson outlined some of the challenges facing the company and gave his personal commitment to improving the relationship with the Union. He felt it was essential that we found better ways of working together and that little will move forward unless this happens.

Meeting with CMA Unite

A meeting took place with representatives of Unite on 2 July 2008. Agreement was reached to initiate a joint Early Day Motion to Parliament focussing on pensions. This motion was tabled by CWU Supported MP, John Grogan and the details of EDM 2136 were issued to Branches in LTB 577/08. Unite have also sent out a letter to all their members in Royal Mail (attached) which outlines our joint views on pensions.

Meeting with Government Review Team

The GS and DGS (P) met the Review Team on 7^th July 2008. They advised us that the two key issues they were concentrating on were regulations and pensions. They made it clear that our ability to reach agreement with Royal Mail on modernising the company would strongly influence the outcome of the Review. They also suggested that the more developed our view of the future of the company was, the more weight our submissions would carry. They said they were very keen to continue talking to us about this and offered the opportunity for future meetings.

CWU Reception “ A Positive Future for Royal Mail” - 14^th July 2008.

The CWU hosted a successful Summer Reception at Westminster to build further support for our campaign among MP’s. Speakers included Derek Simpson, Joint General Secretary of Unite, Richard Hooper from the Review Team, Lord Tony Clarke and Geraldine Smith MP.

Labour Party

The union has submitted proposed wording to be included in the next Labour Party manifesto which would retain Royal Mail in the Public Sector. This is being discussed with Ministers at the Labour Party National Policy Forum taking place between Thursday 24^{th
and Sunday 27^th July 2008.}

We are planning a number of events around the Labour Party Conference in Manchester, which starts on 20 September 2008. These include a demonstration/lobby, a fringe meeting on Universal Service and a reception for delegates. Further details will be announced closer to the date.

Industrial Issues

A meeting was held on 2 July with Dale Haddon, Ninian Wilson and Gillian Allford from Royal Mail. They gave a presentation on a new management operations structure which puts a named person in charge nationally of deliveries, mail centres and the network. They also dealt20with the issue of the future of the mail centres. This, however, confined itself to the reviews already in place in the Thames Valley, Northampton/Coventry/Milton Keynes and the North West and added nothing to what we already know. They confirmed that there would be no further reviews in 2008.

The CWU Vision for a Modern Postal Business

At its meeting on 16th July the Postal Executive agreed that our vision of what a modern postal business looks like is both a priority and vital to the following:-

Taking our Conference Policy E12 forward - giving us a strong bargaining position with the employer.
Providing CWU with real influence in the Government Review.
Growing support amongst CWU members.

This has been developed further with a discussion document presented to the Postal Executive today (24^th July) with contributions from all officers. Further work is required on this document and our intention is to present the CWU vision to both Royal Mail and the Government20Review Team in the very near future. It would also become a focal point in future communications with CWU members. This will enable the Union to shift the emphasis of our Campaign both internally and externally to what we want as opposed to what we are against.

The CWU Campaign is now a standing item at every meeting of the Postal Executive with the aim of monitoring existing initiatives and developing new ones as the situation develops. Further progress will be reported to Branches on a regular basis and a special edition of the Voice covering all aspects of our campaign is currently being prepared.

In the meantime, Branches/Regions are strongly encouraged to continue with their own local initiatives to further the campaign. We would be grateful if branches could work closely with Regional Secretaries and keep them appraised of all developments particularly relating to local news items or press releases issued by Branches.

Yours sincerely

Billy Hayes Dave Ward

General Secretary Deputy General Secretary (P)

TO: the BRANCH secretary

Dear Colleague,

EDM 2136 – Royal Mail Pensions

Further to LTB 543/08, I am writing to advise you that in consultation with Unite an EDM has now been formally tabled by John Grogan MP. In line with House of Commons rules EDM 2136 is worded as follows:-


2136	ROYAL MAIL PENSIONS	22:7:08

That this House believes that securing a just agreement between the Royal Mail and the trade unions on the issue of pensions is crucial to the future of the postal service; recognises that the trade unions are adopting a reasonable negotiating stance acknowledging that the present status quo is not sustainable; further believes that any settlement reached must be at least as good as20those arrived at elsewhere in the public sector in terms both of protecting the rights of existing members and giving hope for reasonable pensions in retirement to new entrants to the postal service; urges Royal Mail to re-open pension negotiations with the Communication Workers Union (CWU) and Unite; further urges the Government to review the 2007 commercial deal to ensure that the £1.2 billion set aside for a ColleagueShare scheme is redistributed to support improved pension reform for all Royal Mail group employees; calls on the Government to undertake a full review of Royal Mail's reported accounts to ensure that there is more transparency and that further consideration is given to whether the existing £1 billion pensions escrow account can be drawn upon now; and strongly hopes that the Hooper Review of Competition and the future of Royal Mail will make appropriate recommendations on the issue of pensions.

Mr John Grogan Michael Connarty

Geraldine Smith Kate Hoey

Jon Cruddas Kelvin Hopkins

Peter Bottomley

As you can see several CWU supported MPs have already signed the mo tion and we have asked that Unite contact their supported MPs to do likewise. Additionally we have emailed all MPs at the House of Commons as well as at their constituency offices. We appreciate that this is the last day of Parliament but the motion will remain tabled and branches should use the summer recess period to lobby MPs in their locality, via their constituency offices.

TO: THE BRANCH SECRETARY

Dear Colleague

Royal Mail Pensions - Hooper Review

This is to advise you that we continue to work closely with Unite on the issues that are affecting our joint membership.

We are continuing the push on the pensions issue and have submitted a joint Early Day Motion (EDM) that we will seek our supportive MP’s to take forward as part of our political campaign.

The EDM calls upon the government to firstly accept their part in creating the Royal Mail Group pension crisis and secondly accept that as the owner of the company, government has a legal and moral obligation to ensure pension reform is brought to a satisfactory conclusion for all concerned.

Through the EDM, we are seeking that the government take the following steps:

1. Insist that Royal Mail re-open pension negotiations with CWU and UNITE

2. Undertake a review of the 2007 commercial deal to ensure the £1.2 billion previously set aside by government and Royal Mail for a ColleagueShare scheme, is now prioritised an d re-distributed to support improved pension reform for all Royal Mail Group employees.

3. Undertake a full review of Royal Mail’s reported financial accounts to ensure there is more transparency and that further consideration is given to whether the existing £1.2 billion pensions Escrow account can be drawn upon now.

4. Ensure that the Hooper Review of completion and the future of Royal Mail also m ake appropriate recommendations on the issue of pensions.

In light of the above, the EDM will seek that as a minimum, Royal Mail Group employees should have at least the same protection agreed with other public sector workers as part of any pension reform.

Would Branches now make contact with their MPs to seek support of the same. Once the EDM has been tabled it can be viewed at: http://edmi.parliament.uk/EDMi/EDMList.aspx

TO: THE BRANCH SECRETARY

Dear Colleague

Campaigning For A Better Future : A Joint Statement Between CWU And UNITE.

Please find attached a signed copy of the CWU/UNITE Joint Statement.

The Statement is signed by Derek Simpson and Tony Woodley, Unite Joint General Secretaries, together with Dave Ward Deputy General Secretary (P) and Billy Hayes, General Secretary CWU.

Yours sincerely

W HAYES DAVE WARD

General Secretary Deputy General Secretary (Postal)

TO ALL BRANCHES

Dear Colleague,

Re: Pensions / Government Review

Pensions

A meeting took place with Royal Mail and Unite on Frida y 30^th May 2008.

Both Union’s strongly pressed the need for Royal Mail to re-open negotiations and reach an acceptable agreement before a dispute becomes inevitable.

In particular the point was made that unless pensions are satisfactorily resolved the matter would ultimately undermine future negotiations on crucial issues across the whole of the Royal Mail group.

Although Royal Mail stated their position remains unchanged, the meeting concluded with the company saying they would reflect on the points raised by the Union. The meeting also covered Royal Mail’s proposals for new entrants and the Unions stated we would reflect on the company’s position.

Government Review / Royal Mail’s Second Submission

Please find attached a copy of Royal Mail’s second submission to the Government Review of Competition in the UK Postal Sector.

It should be noted that despite Royal Mail’s imposed pension reforms the company are still claiming that the pension deficit remains a major risk to the future viability of the Royal Mail group.

Crucially, included in their proposed solution package Royal Mail are calling for improved funding in the following areas:

To close what Royal Mail claim is a £2.6 billion cash gap in order to continue to provide the universal service.

The company wants an urgent resolution of the legacy pension deficit.

The company want access to equity capital to enable Royal Mail to accelerate their transformation programme.

It can be seen from the afore-mentioned that the company’s current business plan is not sustainable and that Royal Mail are linking the government review to pensions.

Letter to Members

Given that the situation is very fluid our Letter to Members has been delayed to this week. This will enable the Union to report on recent developments around our emergency motion and the emerging threat of privatisation.

Any queries regarding this LTB please contact the DGS (P) Department quoting reference number 67000b.

Yours sincerely,

Dave Ward

Deputy General Secretary (P)