INTRODUCTION
The purpose of this report is to provide Branches with a comprehensive update on the work being undertaken
on the Re-design project and that has been carried out in relation to CWU Headquarters.
The report will also reinforce the reasons why this major review of our organisation is necessary and sets out
our next steps as we broaden the debate on what the aims, objectives and approach to re-design should now
be for the whole union.
The report is being published to facilitate and inform the National Briefing being held on the 23rd March and it
covers the following sections:
1. Reinforcing the case for re-design.
2. The work undertaken to date at CWU HQ.
3. Developing a more ambitious recruitment and organising strategy.
4. Desired outcomes for re-design.
5. Next steps.
6. Summary.
What this report demonstrates is that since Annual Conference 2016 action has and continues to be taken at
CWU HQ to ensure we face up to extremely difficult financial and organisational pressures. Furthermore, that
an outline plan is in place to continue this work and reach a conclusion on the Headquarters element of the
Re-design Project.
Whilst we were always clear that Headquarters had to be the starting point of re-design, we are equally clear
that to secure our future as a strong independent trade union, every single part of the CWU must be looked at
as part of the next phase in 2017.
These are very different times – our representatives, members and workers everywhere are coming under
increasing pressure from the pace of change, the future world of work and growing inequality – fuelled
by divisive politics and a much harsher society. For these reasons re-design is about so much more than
achieving financial stability – as crucial as that is. This is a real opportunity for all of us to come together, build
on our strengths, address our weaknesses and put the CWU at the forefront of the fight for a new deal for
workers and a new political settlement.
We look forward to engaging with members, representative and Branches on what will be the most important
debate we have ever had on the future of our union.
Dave Ward
General Secretary
Tony Kearns
Senior Deputy General Secretary
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Section 1 – Reinforcing the Case for Re-design
At last year’s Annual Conference we set out a very strong case as to why CWU cannot continue to operate
as now.
Firstly, since the 1995 merger, aside from one or two significant occurrences predominantly linked to industrial
action ballots, there has been a year on year decline in membership and all our projections show this is likely
to continue.
Secondly, analysis of the union’s finances show a further long term trend that as our income has reduced
through membership decline various aspects of our expenditure have risen.
At the end of October 2016, the SDGS presented the NEC with a more detailed and up to date analysis of
membership decline and its impact on our income. Again, this showed that these same trends continue. This
was followed in January 2017 with the SDGS presenting to the NEC a 2016 end of year summary this confirmed
the financial and organisational pressures on the union are increasing.
In short the year end position was that we ended 2016 with 190,628 fee paying members. This is a reduction in
membership over the year of 1,284 members. Whilst this is a slowing down of the rate of loss as seen in 2015
it is still a loss and brings with it the associated ongoing financial pressures.
Significantly, Plan 1 membership (full time) is down over the year by 2,128, this means that we are losing those
who pay the highest rate of subscriptions at a faster rate than we are losing members generally. This is not
good news as it means we are losing cash income disproportionately to membership loss. Hence income is
falling faster than the average rate of subscription income.
It is also worth pointing out that the detailed analysis of membership over the last 5 years shows we are
losing members at pretty much the same rate across both constituencies. This does not mean that we have
not been recruiting new members, simply that we are losing more members’ year on year in virtually all
businesses, than we recruit.
The only conclusion that can be drawn from the detailed analysis that we have been working on, is that the
financial case for taking a fundamental look at how the whole union operates is stronger now than it was
at Annual Conference 2016. As part of the National Briefing on the 23rd March the SDGS will provide an
overview of the current situation.
It would be easy for the union to simply rely on the financial situation to make the case for re-design – because
this in unarguable. However, at the National Briefing we will emphasise that an equally important argument
for re-design is the need for the trade union movement to become stronger and more relevant in shaping
the future world of work and bringing about a fairer and more equal society. Therefore, increasing our
understanding of the wider challenges that face the whole of the trade union movement is now essential.
The CWU is not alone in facing membership and organisational pressures. The truth is there has been
a pattern of long term decline in overall UK union membership. Records demonstrate that Trade Union
membership peaked in 1979 at over 13 million and has now fallen to 6 million. This in itself is still a significant
number but it only represents around a quarter of UK employees – with membership as we know, heavily
skewed toward public sector and older workers.
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There are of course a wide range of factors that explain this decline. The reduction in the UK’s industrial
and manufacturing base, the increase in small businesses and self-employment, the rise of contracting out
and sub-contracting, anti-union legislation and deep cuts to our public services, have all impacted greatly.
Similarly, mechanisation and new technology has completely changed the nature of work, something which
CWU knows only too well.
Another factor has been a change in social attitudes, where today these tend to be far less supportive of
institutions that promote collectivism, than previous generations.
Although all the above paints a very difficult picture, it does not even begin to convey the sheer scale of what’s
rapidly coming down the track in the form of digitalisation. This is predicted to have a massive impact on the
world of work and is commonly referred to as the fourth industrial revolution.
Against this background, the key point we make here is this: The union that is most likely to succeed in the
future – is the union that best understands what the future world of work will look like.
In response to these developments the trade union movement has rightly come in for its fair share of
criticism, with a common view being that we are not innovating quickly enough. However, there are some
welcome signs that unions are beginning to get their act together. Usdaw have been successful in replenishing
their membership despite a significant turnover. GMB have taken up the cause of Uber drivers, Unison are
prominent in campaigning against wage theft in the care sector; and of course Unite has been successful in
championing the cause of Sports Direct workers. These approaches all show a willingness to bring new ideas
and energy to activism, alongside new issue based organising strategies, that cleverly market the unions that
take up these causes. Through re-design the CWU must do likewise and be willing to try new ideas across the
whole union.
So re-design is fundamentally about rejuvenating our representatives and members to take action and
collectively reassert trade union values at work and in wider society.
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Section 2 – The work being carried out
on Re-design at CWU HQ
We have made the case that the CWU cannot continue to operate as now and we fully accept that we must
lead by example and demonstrate to the whole union that we are prepared to introduce major organisational
change at CWU Headquarters.
This means facing up to some very difficult issues and delivering a more streamlined and affordable structure.
At the same time, we are committed to improving the overall level of support and services we provide to
members, representatives and Branches.
The plan for streamlining HQ, stabilising our finances and improving the way we operate is centred on taking
appropriate action on the following points. (The action taken to date on each of these points is set out below).
Staffing, Resourcing and Payroll (VR Agreement)
At CWU Headquarters we are targeting a significant reduction in payroll costs and after a period of
negotiations with the Staff Side Union we have reached agreement on a Framework for Managing Change.
This is made up of three component parts.
1. Restructuring and Managing Change.
2. Voluntary Redundancy terms.
3. Redeployment and Re-skilling.
As part of this agreement we have made an unequivocal commitment to our employees that in restructuring
150 The Broadway we will not resort to compulsory redundancies.
During 2016 we undertook an agreed preference exercise for voluntary redundancy and received a significant
number of expressions of interest. Following this a programme of VR has been drawn up and broken down
into three phases. The first phase was implemented in December 2016 and saw the release of 13 CWU
employees. Clearly there is an initial cost to such a process and some of this is carried in the 2016 year end
accounts and some into 2017. However, the impact of those leaving thus far has a positive impact upon CWU
HQ pay bill and will eventually save approximately £600,000 per annum ongoing.
Arising from this, the operational changes and overall impact on CWU HQ has been managed and workload
absorbed into existing or restructured roles. The detail of phase two and three of our VR programme is now
being worked on. However, it is accepted that the next stage can only be implemented in conjunction with a
review of HQ departments, which is in the initial consultation and planning stages.
Pensions
As an employer the CWU currently sponsors three separate pension schemes, these include legacy schemes
from our predecessor unions (UCW and NCU) and a CWU 2000 Scheme.
Over a number of years now, as in virtually every other organisation, the CWU has not been immune to the
spiralling costs of pensions and the combined cost of these three schemes in terms of deficits, accrual rates,
admin and the benefits due, are no longer sustainable. However, unlike most employers, the union remains
committed to providing all our employees with an affordable alternative that will still provide decent pensions.
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A formal proposal has been sent to the Staff Side Unions which involves, amongst other things, closing the
current three schemes to future accrual, changing the retirement age from 60 to 65 and introducing a new
DB CARE arrangement for all employees. The proposal made would realise a reduction in expenditure on
current levels of £980K per annum. However, this is to be negotiated and we also have to be mindful that the
next round of triennial valuations of the existing schemes takes place in December of this year and this has the
potential to impact negatively on costs in this area, if changes are not made.
This is of course subject to negotiation with the Staff Side Union and full consultation with our employees,
including the appropriate legal consultation.
It is our aim to reach agreement on these changes and implement new pension arrangements by
September 2017.
Whilst it is appropriate that Branches are aware that the cost of pensions is being addressed, it is ultimately
a matter between us as the employer, our employees and Staff Side Unions to enter into free collective
bargaining in order to determine the outcome through recognised and appropriate consultation and
negotiation processes.
Taking Forward Recommendations from Staff Listening Exercises
Last year we undertook our biggest ever consultation with our own employees where they were encouraged,
through an independent organisation, to give open, honest and confidential views on what they felt it was like
to work for the CWU.
The outcome of this consultation was delivered by an independent company in a joint session with all our
employees and the senior leaders of the CWU in attendance. This exercise brought forward views that were
wide ranging, informative and included both negative and positive points, from a staff perspective, about the
reality of working for the CWU.
It’s fair to say, that some of the views expressed about how the union operates made for uncomfortable
listening. The independent company who are experienced in this field, made a number of recommendations
on how we develop an agenda that incorporates legitimate staff ideas and concerns over the future.
We are committed to taking these recommendations forward and are engaging with the Staff Side union on
this. As we move forward on re-design it is important that branches continue to recognise the valuable work
our staff do on behalf of the union and that given the nature of this report, this is a difficult time for everybody
who works at CWU HQ. We are clear that changes will need to be made and that we need to work hard to
bring our staff with us on this project. Branches will be aware from a previous LTB that Trish Lavelle has now
been asked to oversee this element of the project, reporting to the General Secretary.
Streamlining CWU Department Structures
Given the overall situation the union is in it is essential that we now streamline our department structures
and the approach to this has been discussed on the CWU Governance Committee. A paper outlining a
fresh approach to how we operate at CWU Headquarters is now in the process of being drawn up. We have
commenced discussions with Heads of Departments about what our needs will be for the future and it is fair
to say that this next phase is a crucial element of re-design and one that will be prioritised over the coming
weeks. Our initial thoughts are to see Headquarters based on three pillars made up of our two industrial
wings and our Central Services.
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Whilst a clear objective of any new streamlined structure is to help achieve financial stability for the
organisation, of equal importance is the need to operate in a more joined up and flexible way, where
everybody has a clearer view of how they fit in to achieving the overall aims and objectives of the union. What
we eventually want to achieve is to operate fully as a properly merged union where the sum of each part is
greater than any individual part and where we operate with common purpose on behalf of all our members.
Investing in our IT and Communications
Re-designing our organisation is not just about reducing costs. We have identified areas where the union must
make significant investment to meet the challenges of the future. Our IT infrastructure and communication
tools will be at the forefront of this investment. This work is being overseen by the SDGS and Head of
Communications and the outcome will be central to how we improve engagement with our Branches, Reps
and members.
Review of Assets
Last year the SDGS presented a comprehensive paper to the NEC explaining the value of the overall assets of
the union, including our property portfolio and liquid assets. The GS and SDGS also engaged our professional
financial advisers to assist us in reviewing these assets to ensure we utilise them in the most effective way.
This work is ongoing.
In our property portfolio our main focus will be on 150 The Broadway, the Elstead Hotel and Alvescot Lodge.
However, at some point, in conjunction with our Branches, we will extend this review to CWU properties out
in the field.
In reviewing these assets we will be considering whether or not these properties are fit for purpose and/or
affordable in a streamlined organisation. We are ruling nothing in and nothing out and as this work continues
we recognise that any decision we reach must take fully into account the need to continue to provide a full
range of services for our members. With regard to CWU Headquarters, there has been a debate over many
years as to whether we should consider moving to a cheaper location, thereby cashing in on this valuable
asset. However, the approach we are taking is to firstly consider the type of structure we will need in the
future and then make decisions on whether or not we need to relocate.
As part of this review, we will also consider all options for generating more income for the union from all of our
existing assets.
In order that Branches understand what we mean by assets, this refers to the following taken from the CWU
Accounts: CWU HQ, Alvescot, Elstead, Branch properties, General Fund, Investments, Withheld Fund, Branch
Funds and Defence Fund.
The headline message is that whilst managing income versus expenditure becomes increasingly more difficult
on paper (i.e. in the accounts) the CWU can be considered to be doing fairly well asset wise.
Given where we are the task now is to optimise our options in all of these areas to ensure these assets work
for our members and the Union into the future.
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Communications
The re-design of the Communications Department commenced in January 2016. Any changes have focused
on delivering our messages to a wider audience than ever before amongst our members, the public and
the media. Alongside this, we have taken a one-union approach to communications with an even balance of
constituency issues across all our platforms.
Specific changes have included a complete re-design of The Voice, the introduction of a new publication for
all CWU representatives – Frontline, the launch of new in-house video channels (with over 500,000 views in 9
months), the hosting of major events such as JC4PM and People’s Post rally in Manchester, hosting live online
Q&A sessions (including during the middle of a national dispute) and doubling our social media reach whilst
reducing core costs associated with all of the above activities.
In the coming months, we will introduce a new CWU website alongside an App, both of which will increase the
ability for us to communicate with our members on a regular basis.
Review Contracts with our Suppliers
There are a number of supplier contracts in place at CWU HQ that are necessary both to the running and
maintenance of 150 The Broadway as well as to providing a service to throughout the union in general.
The majority are small contracts but nevertheless add up to noticeable expenditure. We are reviewing our
tendering process to ensure that all contracts offer best value for the money paid.
By way of example, at one end of the scale one of our major contracts, the leasing of high volume print
machines and photocopiers has been the subject of scrutiny and renegotiation by the SDGS and a revised
contract agreed that reduces expenditure in this area by £100,000 per annum. Add the other end of the scale a
HQ property maintenance contract is also being negotiated to reduce outgoings by approximately £14,000 per
annum.
These examples are given to illustrate that, behind the scenes, so to speak at CWU HQ and process is in place
to examine all areas of our expenditure to contribute towards our future sustainability.
Unionline
Through the General Secretary, Senior Deputy General Secretary and Head of Legal Services we are taking an
in depth look at the performance of Unionline. In the near future this will also be done in conjunction with the
GMB. Further information on this will follow in due course and will also be presented to the NEC.
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Section 3 – Developing a more ambitious
Recruitment and Organising Strategy
As part of re-design the NEC agreed it was essential to re-fresh all aspects of our recruitment and organising
strategy and at the end of October 2016 the NEC further agreed a comprehensive document outlining a range
of initiatives to support a more ambitious and expansive approach.
The NEC document recognised that the starting point and single most important factor to CWU becoming an
effective organising union will be the buy-in of the National Leadership, the NEC, the Industrial Executives and
our Branches and Representatives in the field – to one overall strategy.
It was recognised that a successful strategy needs both a consistent message and the flexibility required to
tailor approaches to the different structures, businesses and members that make up the CWU. As we develop
fresh thinking and new ideas, it is also important that we continue the valuable work being undertaken by our
Industrial Executives, including prioritising actions to increase union density in existing recognised companies.
We are continuing to work on the development of our overall strategy including amongst other things,
the following:-
• Scoping the reality of today’s world of work – Given the emphasis we now want to place on
the future world of work, we have commissioned a major piece of work to refresh the “Mapping
the Future” document of a few years ago, this will also provide information about the impact of
digitalisation and in what sectors jobs are likely to grow and be lost. Furthermore, the document
will also identify potential target companies in postal, telecommunications, financial services and
consider whether there is any scope for recruiting outside of our traditional areas.
• Improving and Extending the Membership Offer –We are reassessing the value of what we offer
to become a CWU member. We are currently scoping an improved membership benefits and service
package, alongside the potential for introducing family membership and a new offer to retired
members and self-employed workers.
• Improving how we Promote the CWU – We are taking a more in-depth look at how we promote the
CWU, from establishing a stronger and more identifiable brand, to reviewing all the materials we use
to support our recruitment work. The Head of Communications is also looking at strengthening the
use of new technology and social media to better promote the union. As part of this, we are in the
development stages of building a membership app, which will be accessible on all main smart phone
platforms.
Summary
Developing a more ambitious and effective R&O Strategy is not just about securing our future as an
independent trade union – it’s really about reasserting trade union values in society and crucially changing
the current balance of forces in the world of work. It is of paramount importance that unions like the CWU
accept our responsibility in tackling insecure employment models and preparing to fight for a new deal for
workers everywhere. Firstly, this will be very beneficial to our existing members and is the most effective way
to protect our member’s terms and conditions. Secondly, it is what we exist for i.e. standing up for working
people.
Success here can only be achieved with unity and fresh, innovative and more expansive thinking across the
whole union. Continuing to take forward the range of initiatives that the NEC agreed in the document on
Recruitment and Organising will be a key priority in the coming weeks and months.
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Section 4 – Desired outcomes for Re-design
Nobody who shares a desire to build a stronger union, even closer to the members,
that can be influential and relevant in shaping the future world of work and the
Labour market has anything to fear from the re-design project.
It is very important that we now commence a constructive and positive debate on the aims and objectives
of re-design. We believe this really is a great opportunity to strengthen the union and ensure we build an
organisation that can deal effectively with the challenges of the future. From time to time we all need to be
willing to look at ourselves and tackle potential vested interests, if they arise. Re-design cannot be about
people working in silos or to different agendas and we must support the need to look at every bit of the
union including the parts we work in ourselves. We will have time to build and reach a consensus on the key
aims and objectives and some of these which reflect common sense and existing policy are set out below:
• A sustainable, affordable and more effective structure at CWU
Headquarters and across the whole union.
• Introducing a new Reps package based on greater support to deal with the
everyday pressures all our reps face. In turn we will ask for a clearer and more
consistent position on what we expect from our representatives.
• Improving communication skills across the union and enhancing the quality, frequency and
consistency of our engagement and our branches engagement with our members.
• Scoping new and innovative ideas to give members a better platform to put forward
their views on the type of union they want and the policies they want us to pursue.
• Increasing the overall amount of CWU representatives and advocates
within the union and growing general activism.
• Bring forward a culture of proper succession planning across the
union alongside a new generation of representatives.
• Maintain and enhance our position as one of the strongest workplace trade unions in the country.
• Achieve our aims on proportionality.
• Connect our industrial and political agendas and deliver greater
membership engagement in our industrial and political work.
• Put the union at the leading edge of engaging and communicating with the membership.
• Operate more effectively as one union in which each part works in harmony
with all the others, creating a sum that is greater than its parts.
• Developing a broader view of trade unionism within our organisation through
a more ambitious and expansive recruitment and organising strategy.
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Section 5 – Next Steps
As you will be aware re-design is an evolving project and some key priorities to move forward in 2017
are as follows:
1. The NEC to agree a term of reference for the re-design approach to all structures outside CWU
Headquarters and commence active work on this. This will include how we engage with the branches
and ensure there is a real opportunity for our representatives to input into all relevant projects.
2. To take forward the range of initiatives agreed in the NEC document on Recruitment and Organising.
3. To build on our existing plan and finalise the overall scope of re-design and identify each individual
project within the overall programme.
4. To finalise a discussion paper on the redesign approach to all conferences and put this to the NEC
and then out for meaningful consultation to branches.
5. To finalise and implement essential pension changes at CWU Headquarters.
6. To continue and finalise our work on streamlining CWU Headquarters and implement phase 2 and 3
of voluntary redundancies in our headquarters.
7. To develop a comprehensive communications plan on re-design for members, representatives and
branches.
8. To cement a project management and professional approach to all aspects of our re-design
work. A project management board has been set up which will report to the NEC and Governance
Committee. This is not another subcommittee of the union but is a group that will ensure work
is completed to agreed timeframes and within the rules of the union. Currently the project
management board consists of the GS, SDGS, our Policy Advisors Lionel Sampson and Peter Metcalfe
and the President and Vice President of the Union. The project board reports to the Governance
Committee and the NEC.
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Section 6 – Summary
We want branches to know that we are determined to take forward this necessary re-design project and
secure our future as a sustainable and independent trade union.
We are also totally committed to an open and inclusive debate on re-design across the whole union and there
will be no no go areas
All key decisions that need to be taken about structures outside of CWU Headquarters will be taken to a
properly constructed conference of the union for final endorsement. We will also open up the debate and
ensure everybody has the opportunity to input their ideas and views on the re-design project.
We hope everybody understands that the union cannot continue to operate as now and that this is a great
opportunity to build a stronger organisation and address some longstanding issues that face the whole of the
trade union movement.
There will be those who may say this is not the right time, given the continuing pressures we all face. However,
there will never be a right time and there will always be huge pressures facing our members and the union.
This is the very nature of union work. We are totally convinced that by tackling these issues now we still
have an opportunity to determine our destiny. If we take the easy road of either just accepting an inevitable
merger/takeover or putting these difficult debates off for another day, then we will not be in control of our
future and will be letting our members down.
When we joined the union, we all knew that our most important legacy is not about us as individuals but is all
about the viability of our organisation into the future. We promise that everything we collectively do on redesign
will be driven forward by and in the interests of our members and working people