Following Royal Mail’s announcement of its unilateral decision to proceed with closure of the RMPP for future accrual from March 2018, I am writing to Branches to set out the union’s response.

Attached for your information is a copy of a press release issued by the CWU which strongly condemns the company’s decision and calls on it to think again, withdraw its proposal and enter into meaningful talks with the CWU on introducing our own Wage in Retirement Scheme (WiNRS) which will provide all our members with a decent income and security in retirement.

Despite the union’s strong objections to its closure plan and the fact that Royal Mail’s own consultation exercise revealed overwhelming opposition from employees, the company has decided to completely ignore the views of its workforce, abandon our mutual interest agreements and proceed with closure without consent.

In line with our long standing policy commitment, the CWU have made clear that the company’s attempt to impose change without agreement will be met with the strongest possible opposition including a ballot for industrial action. We will strongly resist any attempt by the employer to impose inferior pension provision which threatens members with massive cuts to future pension benefits and growing insecurity and pensioner poverty.

In the face of Royal Mail’s proposal to close the RMPP and growing evidence of the inadequacy of DC provision, we believe the CWU’s WiNRS scheme provides the company with a credible, cost-efficient and lasting pension solution. Our proposal addresses issues around cost and risk and meets a deeper, moral obligation to deliver fairness to both this and the future generations of Royal Mail employees by providing them with dignity and security in retirement.

In the view of our actuaries, First Actuarial, our proposed scheme is totally viable, allows for prudent management of long term risk, controls employer’s long term pension costs and is likely to deliver pension benefits substantially better than a DC arrangement, bringing an end to two-tier provision.

Instead of rejecting our pension proposals, proceeding with executive action and closing the RMPP without consent, we have urged Royal Mail to honour our agreements and withdraw their closure plans or face the prospect of a serious dispute with the CWU.

Further updates will be provided to Branches in due course.