APPENDIX 1
Memorandum by Amicus CMA
The Communication Managers Association (CMA)
sector represents some 16,000 managers and professional staff
within the Royal Mail Group. The CMA is a section within the trade
union Amicus which is the UK's second largest trade union with
1.2 million members across the private and public sectors.
INTRODUCTION
1. Amicus is always pleased to respond to
requests for written evidence and to comment fully on proposals
put forward. However this Consultation, which will focus on the
refinancing of Royal Mail and the structure of the shares scheme,
has proved challenging.
2. Amicus is disappointed in the lack of
consultation with the trade unions on the proposal for both the
reinvestment package and the share scheme within the Royal Mail
Group. From what we know of the proposals it would appear to be
a fundamental shift in the direction of Royal Mail and one which
Amicus fears could lead to the privatisation of the postal service,
to which we are opposed.
INVESTMENT
3. Whilst Amicus welcomes the investment
it remains unclear to the union exactly what areas this will cover.
Despite requests to Royal Mail we have not been involved in any
detailed discussion with the company about their plans. Nevertheless
in the meantime the redundancy programme continues to roll out
with another 700+ job losses announced within the managers group
during the first two weeks of June.
4. Amicus is also fully aware that other
postal competitors are more advanced technologically than Royal
Mail and that there are benefits to be gained through investment
in updated technology. We want to engage in that dialogue. At
the moment the information is at best patchy.
5. As an example Royal Mail engineering
has suggested that with minimal investment the existing equipment
may have an extended lifetime. Elsewhere we are aware that Royal
Mail has decided to purchase some 1,000 walk sequencing machines.
This would result in new ways of working in delivery offices and
have an effect on the timing of deliveries to customers if Royal
Mail is to sweat that asset. But our knowledge of this has again
not been achieved through direct dealings with Royal Mail rather
a number of trial machines have been introduced without consultation
and agreement with the union.
6. This continual failure to consult through
the established union/management channels indicates a blatant
disregard for constructive dialogue. Royal Mail appears to prefer
focus groups, employee surveys, and one-to-one communications
from the top to communicate. But in the longer run that is no
substitute for meaningful dialogue with the recognised trade unions.
At the same time the staff are subject to endless speculation
from the media about what the future holds. This uncertainty and
the pressure it places on managers and other employees is causing
serious problems in terms of stress and loss of morale.
PENSIONS
7. Amicus welcomes the Escrow arrangements
which secure the funding to underwrite the pensions arrangements.
We also welcome the commitment by Royal Mail to fund over the
next 17 years increased pension contributions in an effort to
resolve the current deficit and would see this as a significant
step forward in the funding arrangements.
8. However as the refinancing package appears
to be tied in with the restructuring plans for the company which
could potentially lead to job losses, we will continue to be cautious
until we see full details of how this will be achieved. It should
be stated however that Amicus are firmly opposed to the refinancing
of the Royal Mail pension scheme based on a restructuring programme
which will lead to job losses.
SHARES SCHEME
9. One must challenge Royal Mail management
on the confidence they have in their own proposals when they appear
reluctant to reveal how the shares scheme will work or what percentage
of the equity would be available for employees. Until Amicus sees
the full proposals for the refinancing of the postal service and
the structure of the share scheme we can only hazard a guess at
how this would work and we may in fact find that the devil is
in the detail.
10. Furthermore, there is no evidence that
share distribution would necessarily contribute to improved relationships
or productivity within the organisation and the potential wide
distribution of equity would not give employees any real say in
the future direction of the business. Our concern is that the
share option would be the sliding slope to an eventual full privatisation
and ultimately the possible transference of the more profitable
parts of the business into foreign hands.
11. Amicus believes that the share scheme
is a blatant diversion from what is actually required to deliver
a postal service fit for the 21st century, namely, a no strings
attached, financial and technological investment in the industry.
12. In summary, Amicus is uncertain exactly
where Royal Mail wishes to invest but are aware that newer technology
exists within the postal industry. We are also aware that investment
in Royal Mail has been lacking for some years and that this has
resulted in poor working environments for employees particularly
in delivery offices where a number of offices are not fit for
the purpose for which they are used.
13. Amicus members have made it clear that
they do not want a privatised postal service. Nor do they want
information on the future of their company which is based on rumour
and hearsay. They do want an efficient, effective, productive
and well managed universal service where management work with
employees to ensure this is delivered. Not management decisions
by diktat.
14. Unless Royal Mail put the rumours to
rest by publishing full details of their plans for the company,
then morale and productivity among the workforce will inevitably
suffer.
June 2006
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