Royal Mail is very disappointed that the CWU has issued a formal notice to ballot for industrial action. We believe there are no grounds for industrial action. We remain committed to reaching a negotiated agreement with the CWU on pay and pensions, and other issues we have been discussing. A ballot does not necessarily mean there will be industrial action.

The Company's position

Royal Mail has engaged with the CWU on the core principles of its Four Pillars. We have offered to continue working towards a new pay deal, including aspects of productivity-related pay and opportunities to consider a shorter working week. We are not proposing to change our core terms and conditions or our commitment to a predominantly permanent workforce. A more flexible and adaptable Royal Mail is the best way to secure as many high quality jobs as possible at the Company now and in the future.

Under its proposals, Royal Mail would continue to provide the best pay and terms and conditions in the industry. Many competitors pay around the National Living Wage. Royal Mail pays 45-50% more than this.

We know how important pension benefits are to colleagues. We have moved a long way compared to our original Defined Contribution proposal. We previously announced that we are offering to replace the current Defined Benefit scheme, the Royal Mail Pension Plan (RMPP), with another type of Defined Benefit scheme, a Defined Benefit cash balance scheme. It would be by far the best pension in the delivery industry. It benchmarks very well compared to other large companies.

Under the proposed Defined Benefit cash balance scheme the Company would make annual cash contributions of around 13.6% of pensionable pay in respect of Plan members' retirement benefits. The Company would contribute a further 2% for other member benefits, including death in service and ill-health cover. Plan members would also have the option of joining a new Defined Contribution scheme, where the company contributions would also be 13.6% of pensionable pay, as an alternative.

It was announced on 8 May 2017 that the RMPP, in its current form, will close to future accrual on 31 March 2018.

Royal Mail is very disappointed that the CWU has issued a formal notice to ballot for industrial action. We believe there are no grounds for industrial action. We remain committed to reaching a negotiated agreement with the CWU on pay and pensions, and other issues we have been discussing. A ballot does not necessarily mean there will be industrial action.

The Company's position

Royal Mail has engaged with the CWU on the core principles of its Four Pillars. We have offered to continue working towards a new pay deal, including aspects of productivity-related pay and opportunities to consider a shorter working week. We are not proposing to change our core terms and conditions or our commitment to a predominantly permanent workforce. A more flexible and adaptable Royal Mail is the best way to secure as many high quality jobs as possible at the Company now and in the future.

Under its proposals, Royal Mail would continue to provide the best pay and terms and conditions in the industry. Many competitors pay around the National Living Wage. Royal Mail pays 45-50% more than this.

We know how important pension benefits are to colleagues. We have moved a long way compared to our original Defined Contribution proposal. We previously announced that we are offering to replace the current Defined Benefit scheme, the Royal Mail Pension Plan (RMPP), with another type of Defined Benefit scheme, a Defined Benefit cash balance scheme. It would be by far the best pension in the delivery industry. It benchmarks very well compared to other large companies.

Under the proposed Defined Benefit cash balance scheme the Company would make annual cash contributions of around 13.6% of pensionable pay in respect of Plan members' retirement benefits. The Company would contribute a further 2% for other member benefits, including death in service and ill-health cover. Plan members would also have the option of joining a new Defined Contribution scheme, where the company contributions would also be 13.6% of pensionable pay, as an alternative.

It was announced on 8 May 2017 that the RMPP, in its current form, will close to future accrual on 31 March 2018.

Royal Mail plc published this content on 07 September 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 07 September 2017 09:17:12 UTC.

Original documenthttp://www.royalmailgroup.com/notice-ballot-industrial-action-received-cwu

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