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Latest NewsEconomics, government & businessPay settlements

Union presses Royal Mail to honour basic pay commitment

by Mike Berry 3 Aug 2005
by Mike Berry 3 Aug 2005

The Communication Workers’ Union (CWU) has expressed concern about the timing of Royal Mail’s announcement that a new Share in Success scheme is to be introduced.

Royal Mail has said the scheme – discussed without the union’s involvement – is designed to pay out ÂŁ400 per employee if the business hits a profit target next year of ÂŁ600million. The previous scheme paid ÂŁ1,050 to every postal worker, based on three-year profit targets.

Chairman Allan Leighton said: “We’ve got a really simple deal here – the people whose hard work leads to success and profit for the company get a share of that success.”

CWU deputy general secretary Dave Ward said: “The union has always said it has no problem with our members sharing in the success of Royal Mail, but we strongly believe basic pensionable pay should be the number one priority. 

“We will be seeking an urgent meeting with the Royal Mail board and the government to address our legitimate concerns. In particular, we want the company to be more honest with employees about their long-term agenda.”

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He warned that the firm’s targets could only be achieved through significant job losses and major changes to union members’ terms and conditions

“We will also be demanding Royal Mail honour the commitment in this year’s pay deal to make higher, basic pensionable pay the number one priority,” Ward said.

Royal Mail
Mike Berry

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