TIDMRMG
RNS Number : 3036A
Royal Mail PLC
22 September 2022
Royal Mail plc
(Incorporated in England and Wales)
Company Number: 8680755
LSE Share Code: RMG
ISIN: GB00BDVZYZ77
LEI: 213800TCZZU84G8Z2M70
22 September 2022
UPDATE ON INDUSTRIAL RELATIONS IN ROYAL MAIL
Royal Mail is today providing an update on industrial relations.
A fter five months of talks, including three dispute resolution
procedures, no agreement has been reached with the Communication
Workers Union (CWU).
As previously announced, Royal Mail made a loss of GBP92 million
in the first quarter, equivalent to approximately GBP1 million a
day. Royal Mail needs to adapt much faster to adapt to changing
customer demands in a highly competitive market. The CWU has
blocked any meaningful discussion on the change agenda the company
has set out, and has not put forward any viable alternatives that
will fund further pay increases.
Given the lack of progress made, and the ongoing damaging impact
of industrial action on the business and customers, Royal Mail has
today taken two steps to break the impasse and ensure it can move
ahead with its transformation at pace:
-- Firstly, Royal Mail has written to CWU to propose that talks
should be taken to Acas (the Advisory, Conciliation and Arbitration
Service) in a further attempt to find a resolution.
-- Secondly, Royal Mail has informed CWU that it wants to
modernise the ways of working with them. As part of this, Royal
Mail will review or serve notice on a number of historic agreements
and policies which are currently being used by the CWU to frustrate
transformation, and intends to move to a more modern industrial
relations framework designed to make the business more agile, and
able to compete more effectively.
Over many decades, a complex web of CWU agreements and
structures has developed at Royal Mail. For example, the Agenda for
Growth agreement, signed at the time of privatisation, is the only
agreement of its kind in the UK that includes certain legally
binding undertakings. This was designed to ensure long term
stability and growth, including industrial stability. The agreement
entitles Royal Mail to give notice on certain undertakings in the
event that CWU takes national scale industrial action. To date, CWU
has taken national industrial action on three dates - 26 August, 31
August and 8 September 2022, and has announced two further strike
dates on 30 September and 1 October 2022.
Royal Mail is not changing quickly enough, a reflection of the
unique, complex, costly and highly restrictive union agreements and
structures built up over many years. By taking steps to modernise
agreements and ways of working with CWU, it will allow Royal Mail,
among other things, to:
-- speed up decision making on a daily basis - currently CWU
Reps in units across the company negotiate and allocate overtime,
annual leave and the hours that people work;
-- trial and introduce new technology more quickly - Royal Mail
has invested tens of millions of pounds in new technology to
improve the customer experience, but has been restricted from using
the information to improve performance and safety;
-- revise attendance policy to address persistent instances of short term absence;
-- reduce complexity and cost - we will review the commercial
and IR agreements governing the current CWU structures in Royal
Mail to ensure arrangements are fit for purpose;
-- remain competitive and retain our position as the best
employer in our industry, with the best pay, pensions and
conditions.
To do this we want to work with CWU on what new, modern, ways of
working between the two will look like. These changes are important
steps towards modernising the industrial relations framework. They
will allow Royal Mail to move from a system where the CWU has many
powers to veto and block change, to a more consultative
relationship.
The business can then move forward on its change agenda to
remain competitive for the long term, a necessary step to securing
Royal Mail's future.
Enquiries:
Investor Relations
John Crosse
Email: investorrelations@royalmail.com
Royal Mail investor relations line: 020 7449 8183
Media Relations
Mark Mann
Phone: 07483 144 684
Email: mark.mann1@royalmail.com
Jenny Hall
Phone: 07776 993 036
Email: jenny.hall@royalmail.com
Royal Mail press office: press.office@royalmail.com
Company Secretary
Mark Amsden
Email: cosec@royalmail.com
FORWARD-LOOKING STATEMENTS
This document contains certain forward-looking statements
concerning the Group's business, financial condition, results of
operations and certain Group's plans, objectives, assumptions,
projections, expectations or beliefs with respect to these items.
Forward-looking statements are sometimes, but not always,
identified by their use of a date in the future or such words as
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'should', 'expects', 'believes', 'intends', 'plans', 'potential',
'targets', 'goal', 'forecasts' or 'estimates' or similar
expressions or negatives thereof.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors, which may cause the Group's actual
financial condition, performance and results to differ materially
from the plans, goals, objectives and expectations set out in the
forward-looking statements included in this document.
All written or verbal forward-looking statements, made in this
document or made subsequently, which are attributable to the Group
or any persons acting on its behalf are expressly qualified in
their entirety by the factors referred to above. Accordingly,
readers are cautioned not to place undue reliance on
forward-looking statements. No assurance can be given that the
forward-looking statements in this document will be realised;
actual events or results may differ materially as a result of risks
and uncertainties facing the Group. Subject to compliance with
applicable law and regulation, the Group does not intend to update
the forward-looking statements in this document to reflect events
or circumstances after the date of this document, and does not
undertake any obligation to do so.
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END
MSCPPUUCBUPPURP
(END) Dow Jones Newswires
September 22, 2022 04:41 ET (08:41 GMT)
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