CWU BLUEPRINT FOR A NEW DELIVERY MODEL 2016

 

 

Background

1. The Delivery network has continued to evolve since BT 2010. Automation in delivery offices and Mail Centres has had an impact on the balance between indoor and outdoor workload[1]. Letter volumes have continued to decline[2], packets/parcels continue to increase and Door-to-Door (D2D) which is now a standard part of delivery has not increased at the rate anticipated across the UK. Competition has been introduced and is influencing the levels of workload previously carried out by our members particularly in the delivery of Packets/Parcels and Down Stream Access (DSA)[3]. All this means changes in working practices continue to evolve and the CWU must be at the heart of those changes, influencing them to the benefit of our members; we need to revise our vision of a future delivery model.

 

2. Business Transformation impacted on Delivery Offices and the way our members work. Outdoor Delivery Methods have been deployed across the UK although not as stringently as we would have liked and this will need to be addressed going forward. Indoor Work Methods continue to be deployed to varying degrees and standards but in this evolving environment its impact will undoubtedly diminish. Delivery spans have increased and this is having an affect on our members in terms of fatigue and durability[4]. It is essential that the CWU has a modern and comprehensive ‘Blueprint’ for deliveries in place ahead of any national talks in order to satisfactorily influence change.

 

3. The CWU has embraced automation, and assisted in improving efficiency. However we need to be in a position to raise the morale of our members through a process of active engagement and involvement. Royal Mail’s planning assumptions continue to be driven by financial savings (budgets) even more so now that they are privatised. While there will be opportunities for cost reductions, Royal Mail must acknowledge that the cheapest way is not necessarily the most desirable given quality of service implications, customer perceptions and employee morale and job security. We must do all we can to prevent Royal Mail from entering a race to the bottom. We must beat competition by consistently being the best.

 

4. A new agreement must be reached over a number of core issues in order to facilitate the introduction of an effective new delivery model[5]. These include the following:

• Future working arrangements– including a commitment to future employment and job security, recruiting people on permanent contracts and making people permanent, including accurately reflecting the hours Part Time employees work in their contracts every 6 months.
• A focus on establishing and maintaining a significantly predominant FT: PT ratio at local level[6].
• Regular information sharing and engagement in meaningful discussions at all levels;
• Joint understanding of the implications of regulatory legislation and competition;
• The use of measurement systems, revision tools and planning methods; based on standard performance of 75bsi
• Future trials, terms of reference and guiding principles;
• Maintenance of industry wide leading edge terms and conditions and future earnings potential;
• Working safely; Doing the Job Properly – indoor and outdoor
• Delivery methods and structures;
• Delivery spans and Delivery specifications;
• New Products and Services including the re launch and rebranding of D2D in a revised delivery agreement;
• A Strategy for the handling and delivery of packets/parcels including the retention of small/medium packets/parcels in the Delivery function;
• Continuing to enhance the function, role and provision of service in Enquiry Offices.

A National Agreement

5. A national agreement or strategy document covering future working arrangements and delivery methods is essential. It should enable both parties to engage in local/area discussions, develop effective working relationships and support a smooth transition to a new improved delivery model.

 

6. Any agreement must incorporate a clear commitment from Royal Mail to future employment and job security. Such a commitment is necessary to engage employees in the process of change, foster a sense of security about the future, motivate staff and enable a smooth transition to new working arrangements.

 

7. Royal Mail must commit to retaining a predominantly full-time workforce in delivery by a significant margin. This will again help provide a sense of security for employees who wish to remain. Part-time employees wishing to retain their current terms and conditions should be equally assured of their future. Opportunity should also be provided for those wishing to progress from part-time to full-time. We must see the removal of fixed term Contracts, casuals and agency workers wherever possible and a complete block on managers performing OPG work, zero hour contracts and franchised deliveries.

 

8. A national trainee/apprenticeship scheme should be introduced for 21 yr olds and younger with quotas agreed for each area, with guaranteed progression to permanent FT status. Guidelines put in place to protect seniority whilst allowing trainees/apprentices to progress to FT

 

CWU Involvement[7]

9. Royal Mail and the CWU must retain a joint commitment to share all information/data and fully engage in meaningful discussions at local, area, divisional and national level. There needs to be a fresh approach to improve the behaviour of management and CWU representatives, increasing levels of trust and fostering more positive working relationships. Positive working relationships between the CWU and management at local level without interference from senior managers result in better employee relations in the workplace.

 

10. Joint training packages should be in place for all managers and CWU reps prior to the deployment of new agreements and revision processes.

 

11. Prescheduled release for Delivery reps to enable them to fully participate in IR issues and effectively represent our members.

 

12. There needs to an enhanced commitment to sharing agreed best practice/experience on all aspects of delivery through a recognised structure/communication channel and across all boundaries.

 

Automation[8]/ Technology

13. We must continue to share the implications of new technology and improved automation, including the utilisation of MPU’s, in both the short and long term, in order to inform ongoing negotiations on a revised delivery model. Such understanding will enhance the prospect of meaningful discussions throughout the business and also help inform the debate on the future delivery estate. We should use the impact of automation to agree a new National SLA that includes improved arrival times and supports innovative attendance patterns and duty structures. We should also look to have a no later than start time in all delivery offices.

 

14. CSS machines must be operated strictly in line with agreed operational and H&S procedures relevant to MPU’s (Delivery Offices). In other words by doing the job properly.

 

15. All operational departments must be involved in developing a revised strategy around automation/technology. Taking account of its impact right across the pipeline and in particular indoor workload in delivery.

 

Revisions, Tools and Trials

16. The full involvement of the CWU in the ongoing use and development of any/all revision tools and planning methods – GeoRoute (FMO), IWT, Pipeline Production Control and Automated hours data capture – is essential. A joint statement agreeing BSI performance based on recognised Industry standards should be sought when the use of revision tools and planning methods are used for revisions. All databank / planning values should be shared with the CWU and where concerns exist they should be discussed and agreement sought. Ongoing agreement is necessary[9] to increase confidence and support in processes at all levels of the business and to ensure the effectiveness and reliability of locally implemented revisions. This will need to be supported by ongoing training and development of CWU reps and managers, with an objective to have a trained ‘expert’ in all Postal Branches/areas to provide support to units within their Branch boundaries.

 

17. Performance should continue to be measured as a unit and not on an individual basis. It is essential that traffic counts by stream are accurate and reliable in order for performance to be measured accurately and fairly. A reliable system of traffic recording and measurement will need to be put in place to enable this; consideration should be given to moving traffic recording back into delivery offices, and providing information when it is relevant.

 

18. Any future trials should continue to be based on nationally agreed terms of reference and guiding principles. Input must come from all concerned parties to enable a final agreement or code of practice to be established.

 

19. The revised (2014) 6 phase revision process remains fit for purpose with a sign off at each phase and should be retained. However we should include a verification process prior to phase 1 for local reps to sign off confirming that they have been trained on revision tools.

 

Earnings and Reward[10]

20. Any revised national agreement must commit Royal Mail to at least maintaining current and future earnings potential. The joint aims of any local revisions must be agreed locally and must ensure that quality of service targets are met whilst also maintaining and where possible looking to improve local earning opportunities where this is desired. Insecurity with regard to future earnings is otherwise likely to hinder agreement over change in some areas of the country.

 

21. Any revised way of working/operational change in delivery must involve a share in any savings and/or a reduction in the working week, derived from increased efficiency, and increased revenue through new products and services, or non operational savings. It may be necessary for this to be implemented in conjunction with other parts of the industry. The time is right for a shorter working week; its implementation will help raise morale in delivery offices across the UK.

 

22. A full joint review is necessary to look at opportunities to improve reward which may also include increased annual leave and extended meal reliefs particularly if delivery spans are extended.

 

Working Safely[11]

23. Working safely is an essential foundation on which to build a sustainable future delivery model. All employees have the right to work in a properly managed, safe and secure environment and be treated with dignity and respect at all times.

 

24. It is essential that all employees are allowed to take their full quota of annual leave in every leave year unless they wish to carry over some leave.

 

25. Royal Mail should fully support its employees and the CWU by ensuring that all health and safety standards will be adhered to at all times and having transparent processes in place to support this. This should include the mandatory requirement that all OPGs take their breaks (PDA Technology could support this), use the right equipment in the right way for the job and do not use private cars on delivery, a compliance audit process should be agreed to support this. There must also be a commitment to fair and manageable workloads and to ensuring all working environments are clean and as safe and secure as possible.

 

26. There should be an increased emphasis on the quality and provision of uniform items particularly where footwear is concerned

 

27. An agreement on working safely will reinforce Royal Mail’s stated aspiration for the highest level of safety in the workplace. CWU Safety Reps should play a key role in implementing relevant working practices.

 

28. The CWU should maintain a position of retaining a physical workplace for employees/members.

 

Delivery Methods and Duty Structures[12]

29. All new delivery methods should continue to be discussed, trialled and agreed nationally. Consideration should also be given to transporting HCT’s to distant points to enable foot deliveries. . A review of delivery methods/equipment may be necessary to support the requirements of a future national agreement and the requirements of delivery OPGs to be able to carry out their duties safely and effectively.

 

30. Duty structures should be developed locally; however, the CWU nationally must have an input into how those structures are developed and they must remain consistent with national agreements and guidelines. Opportunities for innovative duty structures and attendance patterns including more Saturdays off must be retained. Consideration could be given within a revised delivery agreement to exploring attendance patterns that cater for seasonal variations in traffic, and cater for family friendly attendances and carers.

 

Delivery Spans and Specifications

31. The CWU continues to reserve judgement as to the urban and rural residential delivery specification. However, we do believe that there should be a first and last letter time for core delivery products (USO) to urban and rural residential addresses, and this should be similar to the existing core delivery times. Deliveries should also occur at a consistent time each day. The delivery time specification should be clearly advertised to the public. Information regarding expected delivery times to individual addresses should be available from local Enquiry Offices.

 

32. We should pursue a nationally agreed delivery time specification for firms / business mail of between 7am and 11am. This would improve the service to business customers, enable Royal Mail to compete more effectively and provide a foundation for the development of other new products and services. Moreover, we want to see a requirement to support SME’s enshrined in the Postal Services Act that guarantees them a consistent and reliable service.

 

33. The length of delivery spans can be determined locally according to workload and delivery method used, and in line with the principles set out in annex F. There is scope for securing full-time working through the effective use of technology and different methods of delivery as well as through cross functional working and hybrid duties. In addition, the use of more innovative attendance patterns – including four-day weeks and nine-day fortnights – should be encouraged as well as duties that provide an improved work/life balance. Consideration should also be given to split deliveries where on completion of the first part of a delivery there is a return to the delivery office for a meal relief and the collection of the second part of the delivery. This may also involve a change in the delivery method. Routes should be constructed to enable this to be done efficiently.

 

34. Any increase in the length of delivery spans will need to be trialled in a defined area and number of units, and subject to stringent fatigue and health and safety assessments prior to any deployment or extended trial.

 

35. Consideration will need to be given to the ongoing provision of adjusted/rehab duties for those who are unable to carry out ‘full’ delivery duties.

 

36. We will continue to fully support the retention of a 6 day Monday to Saturday Universal Service Obligation (USO). Whilst our minimum requirement remains 5 day working over a 6 day service it will not prevent the CWU from examining the potential of delivering over 7 days if this will protect jobs and enable more innovative duty structures and attendance patterns. This is on the basis of Sundays remaining optional not compulsory and also attracting the appropriate pay rates.

 

New Products & Services and Door-to-door[13]

37. The CWU remains committed to exploring, trialling and introducing new products and services that will help to improve Royal Mails position in a competitive market and increase revenue, whilst protecting jobs and providing opportunities for improving our members terms and conditions. This approach should be supported by the introduction of a Innovation Board made up of CWU and Royal Mail representatives and should examine opportunities and ideas to innovate in all areas of the business in terms of products, services and operations.

 

38. The Board should examine a number of key work areas for innovation including: first and last mile; parcels/ packets; financial services and data; and information, among others. Door-to-door should be re branded and re launched via a comprehensive campaign across the UK and in all delivery units and may include new methods of delivery. Communication with members will be vital. It must be made clear that we can no longer afford to treat this as inferior traffic and we should look to expand the product to protect pay and jobs and limit the opportunity for the competition. We should also look to deal with the possible automation of the product and build in safeguards for our members.

 

Enquiry Offices (Service Points)

39. The redevelopment of Enquiry’ Offices and the enhancement and provision of services should continue with more emphasis and commitment from Royal Mail. This should include improving access for customers through increased opening hours and the extension of the opening days. Enquiry’ Offices should be redeveloped as a more effective access point to postal services and information on products and services. Offices should act as both a collection and posting point for customers. They should be open seven days[14] a week with opening hours extending beyond normal office hours. They should become the shop front of Royal Mail.

 

40. Enquiry office hours should also allow the public to contact the delivery office via telephone or email (information included on P739) to inform them what time / day it would be suitable to deliver any undelivered items, or for them to be collected. This would assist in developing a local delivery register which could be enhanced via information gleaned from PDA’s.
41. Residential and small business customers should be encouraged to use Enquiry Office’s to access information regarding delivery times in their local area. A delivery register could also be maintained containing information as to when customers are able to sign for deliveries and where safe drops are available. Customers could be encouraged to provide their Enquiry Office with this information as a means of reducing the volume of undelivered items and thereby improving the service.

 

42. Customers could also use Enquiry Offices to make out of hours collections by entering with a swipe card or code and collecting the undelivered item from a bank of lockers. Under such circumstances additional services could be added, such as ATM access. ‘Customer Care’, Royal Mail’s customer service facility, could be returned to local offices thereby improving customer care through access to local knowledge.

 

Next Steps

43. Our key objective must be to bring about meaningful negotiations with the business over the core issues identified as necessary to facilitate the introduction of a revised delivery model. It is essential that this happens quickly and to this end it is our aim to engage CWU representatives and members at all levels as well as taking our campaign to stakeholders who share our concerns over the future delivery service.

 

44. Our intention is to roll out this document and any accompanying information and presentations at divisional/regional and area/local CWU level, to provide activists and members with a clear blueprint of what we believe we need to achieve in order to facilitate an acceptable and effective new delivery model whilst at the same time engendering a debate within the union taking on board the wishes and ideas of our members.

 

45. In support of our industrial campaign, it is our intention to engage external stakeholders over the potential implications of Royal Mail’s vision of a new delivery model. There is already much dissatisfaction over delivery times, particularly among small businesses. Alterations to MPU’s, the possibility of continuing Mail Centre closures and the current use of automation along the lines employed by Royal Mail indicate a situation that will retard mail arrivals into delivery offices and subsequently later deliveries. Job insecurity, inadequate resourcing an increased reliance on agency and casuals will also undermine quality, customer service and the ability to take our members with us.

 

46. We must take this message, along with our alternative vision for a revised delivery model, to stakeholders such as the Federation of Small Businesses, Consumer Focus and the British Chamber of Commerce, who we believe share our concerns and who can bring further pressure to bear on the business, the regulator and the Government, even though we are now privatised. In addition, it is our intention to provide branches with the necessary materials to engage with such groups at local level.

 

 

 

Conclusion

47. The work undertaken by delivery workers is changing. New technology, automation, competition, regulation and structural change in the postal market are all resulting in the need for a revised delivery model, emphasising the need for a new national agreement covering future working arrangements and methods in delivery taking into account all the issues raised within this report.

 

48. The intention is to take this forward as CWU policy in future discussions/negotiations regarding a revised delivery model set against an agreed timescale and milestones of events/changes. This process will be supported by cross functional discussions and coordination that meet the requirements of agreed changes supported by joint working groups all working simultaneously to an agreed agenda and towards a common outcome. It is important that our members are kept in the loop and fully apprised of progress on a regular basis via comms (some joint), including a Special edition of the Voice and regular articles and also via briefings. It is also important that our members are provided with a facility for feedback in line with paragraph 44 above.

 

 

[1]           Increased levels of walk sorted and walk sequenced mail – to between 85% and 90% – have reduced the amount of                indoor sorting (IPS) and to a lesser extent the preparation undertaken in delivery offices. This increased automation                has seen the ratio of indoor versus outdoor move to around 30% indoor and 70% outdoor.

 

[2]              Evidence suggests that mail volumes continue to decline. A view that is shared by a number of

Postal administrations. However this alone does not significantly reduce the workload in delivery offices

or across the outdoor element to the extent Royal Mail would have us believe. The CWU continues to reserve                judgment                about the accuracy of traffic levels and letter decline.

 

[3]                  See Annex H European Postal Comparators

[4]              See the Long Term Fatigue Study 2015

[5]              See Annex A for a full list of ‘guiding principles’ necessary to underpin a future delivery model.

[6]              Existing PT employees should be offered FT employment before any external recruitment

[7]              See Annex B

[8]              See Annex C

[9]              This should continue to cover issues such as walking speeds, call rates and attendance calls.

PV’s need to take account of local circumstances. In all instances they should not be definitive

and should allow for local input and influence.

[10]             See Annex D

[11]             See Annex E

[12]             See Annex F

[13]             See Annex G

[14]             We are not suggesting here that we go to 7 day attendances but a 7 day service. It may be

possible to cover some of this work on overtime or SA or  look at using the hours to provide

innovative attendance patterns.