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Royal Mail’s South & West Wales MTSF Preference Exercise

The three CWU Postal Branches within South & West Wales met with management to discuss the MTSF Preference Exercise that the business intended to role out to our members. Branches viewed their concerns with certain aspects of the original document that was presented and amendments were made. The consensus is now that the amended exercise is compliant with the Managing the Surplus Framework National Agreement.  

The initial feedback that the Branch has received from representatives is that there are members within our area that would consider options of voluntary redundancy, an increase in their contractual hours and/or a change of work location. On this basis the Branch has decided that it should be the decision of each individual member on whether they wish to complete the voluntary preference exercise or not. Voluntary is the key word and no member should feel pressurised into completing the form if they choose not to; your manager should respect your decision.  

You will have had reference made from the business on the amount of savings that they need to achieve. The Branch view on this is that this exercise is in no way a means of determining how many hours should be removed from any individual office. There are National Agreements on identifying and implementing change with the full involvement of the CWU; whilst maintaining fair and manageable workloads which are achievable within our members contractual hours. This will be dealt with following the guidelines of the Industrial Relations Framework.  

The Branch does have a real concern however that members may not be aware of the implications of taking the option of a buy down of their contractual hours with regards their pension entitlement. Dependant on individual circumstances; members should be aware that a reduction in their contractual hours could have a serious impact in the amount of pension benefits that they receive; compared to the amount that they would have received if they had remained on their original contractual hours. Your Branch advises any member that is considering a buy down to contact the Pensions Service Centre on 0114 241 4545; to determine what impact a buy down could have on their pension benefits; before making any decision.  

If you have any concerns or require further advice regarding the above; please speak to your local CWU representative or contact the Branch Office on 01639 813146.

 

South & West Wales – MTSF Preference Exercise

Questions & Answers

Q.               Why are we undertaking a preference exercise?

A.   We are creating unit and area business plans that are realistic & achievable by including colleague’s individual preferences given the need for changes in the way we all work. This will help the area plan better.

     This local area exercise has not been initiated as a result of the Hooper report provided to Royal Mail.

 Q.   Who is eligible to take part in the preference exercise?

A.   Every permanent colleague in South & West Wales. All colleagues in the units are eligible and encouraged to participate, from managers, to postmen & postwomen from full time and part time. Colleagues in Romec, Quadrant and other partner organisations will not be eligible to take part.

 Q.   I am a manager or in an administrative role, should I fill in a preference form?

A.   Yes. Your individual needs need to be accounted for and matched to our business plans along side all colleagues.  

Q.   Will colleagues on long term absence, career break or maternity leave take part?

A.   It is important that every colleague should be briefed on the future before completing the form and every colleague is encouraged to take part. You will receive a pack to your home address if you are on long term absence, career break or maternity leave.

 Q.   Is this preference exercise voluntary?

A.   Yes. We are looking for everyone to participate. This exercise is a new approach and we hope everyone takes part.

 Q.               By completing my preference form will this mean I am signing up to this option?

A.   Not signing up, however it is important that you have a strong preference and the information provided will be treated seriously.  

Q.               By completing my preference form, will I be guaranteed this option?

A.   We cannot provide any guarantees, however we will endeavour to match all needs with the requirement in the business plan  

Q.   Will VR be available?

A.   Each individual VR business case will be assessed based on its merits and where operational hours are permanently removed and the VR compensation costs in, these cases are likely to be approved. All VR terms will be covered by the relevant MTSF terms for operational, management & non-operational colleagues.

 Q.   I am not sure if I want VR, can I get a quote?

A.   We are asking large numbers of colleagues for their views, so if you are serious about leaving the business on VR please use the preference form. If you would like to understand the estimated amount for VR, please use the ready reckoners in this pack. This will avoid delays in supplying quotes to those genuine enquiries.

 Q.   What is a ‘buy down’?

A.   This is an incentivised scheme which compensates colleagues under MTSF to reduce their working hours. Typically this reduction is from 40 hours to less than 25 hours, however all requests will be considered. Please ask your line manager if you are interested.

 Q.   What are the pension implications of a ‘buy down’?

A.   If the employee is a member of the Royal Mail Pension Plan, membership of the plan will continue uninterrupted, albeit on pro rated part time contributions and accrual of benefits, subject to the rules and trust deed relating to the plan. Any employee over the age of 50 who requests a reduction in hours should contact HRSC Pensions to receive clear, individual information regarding the impact on their pension.

 Q.   What is ‘bumping’?

A.        Bumping is the term used when a surplus employee, not wishing to accept Voluntary Redundancy (VR), can be placed into a like for like template role already filled by someone who has expressed an interest in VR and the VR business case costs in under MTSF.  

Q.   Is ‘bumping’ voluntary and includes voluntary transfer terms?

A.   Bumping is a voluntary process and requires all colleagues involved to agree voluntarily. Bumping only occurs where there is a vacancy created by someone leaving, transferring to another unit will be completed on voluntary transfer terms.  

Q.   Are all costs being reviewed to achieve next years business plan?

A.   Yes. All costs are being reviewed including our staff costs, management & administration costs, vehicles etc.  

Q.   Have the unions been consulted?

A.   The CWU & Unite/CMA have inputted to this preference exercise and each union have the opportunity at each unit/shift launch presentation to talk directly to their members. You will also see a covering letter from the CWU your colleague pack.

      Unite/CMA is not supportive of the preference exercise and an excerpt from their letter is below. Any manager wishing to see the full letter can have access to it. ‘Whilst Cardiff and Swansea Unite/CMA branches recognise the business wants to run a preference exercise to ascertain people’s personal positions and understand the business requirement for an 8% reduction in spend, Unite/CMA can not agree with this position without more facts and rationale.’  

Q.   Why can’t we stay as we are?

A.   Hopefully from the business presentation you understand the need for change, given the competitive, financial and regulatory conditions. Please talk to your line manager for further clarity if required. Do nothing is not therefore an option but any changes to work patterns and duty structures will be handled through the IR framework with the union.   

Q.        Where can I get more help or information before I submit my form?

A.        Your line manager initially. There will also be members of HR and the ALT also attending WTLL sessions to answer any other specific questions. If you have difficulty in getting an answer, please email Paul Wills (HR Business Partner) at paul.wills@royalmail.com

 

What is a Buy Down of Hours  

If you would like to voluntary reduce your contractual hours and an opportunity exists for you to take up a part time vacancy, you will receive a lump sum compensation payment.
  

 Q.                If  I am over 60 and want to buy down my hours will this affect my pension?

A.        No. Your pension is based on your contributions up to the age of 60. Buying down now will not affect your pension only your take home pay.

 Voluntary Redundancy (VR)

 

 0.5 weeks pay for each full year of service under the age of 22

1.0 weeks pay for each full year of service from age 22 to 40

1.5 weeks pay for each full year of service over the age of 41

The total no. of weeks is then multiplied by 3.75

 For example, an employee age 47 at LDOS with 10 years service would receive 4x1week = 4 ( age 37-40 ) and 6x1.5 weeks = 9. Total number of weeks would therefore be 9 + 4= 13 x 3.75 = 48.75 weeks.  

Q.   Will my pension be enhanced between the ages of 55-60?

A.   Yes as agreed under MTSF

 Q.   If I am between 55-60 and I choose to leave on VR what payments will I get?

A.   A VR compensation payment and then a pension lump sum whenever you decide to start drawing your enhanced pension. The pension can be drawn from the date you leave.

Q.   If I leave the business on VR, will my colleague shares?

A.   Yes. You will however get a payment for the value the shares are worth at the last valuation.  

 Useful Numbers (Please consult your line manager too):

 

VR Helpline               0845 6060603

Pensions Helpline          0114 241 4545

Employee HELP        0800 6888 777

 

   

 

Copyright © CWU South West Wales Branch 2008