Business

Pay proposals of Royal Mail rejected

A pay rise of 8.6 percent over three years for 125,000 employees of Royal Mail has been rejected by the postal unions. The proposal from the organization was rejected by the Communication Workers Union (CWU) for several reasons.

One of the reasons for rejection includes that the pay element in isolation does not met the terms of the CWU policy for an above inflation. Another reason includes that the pay element does not address the CWU’s claim for significantly improved overtime rates and new bonus arrangements. Moreover, the linkage to the earlier rejected pension proposals was not acceptable.

The proposal from Royal Mail includes a non-consolidated lump-sum payment of £300 for the part-time employees in December 2013. The deputy general secretary at the CWU, Dave Ward said, “The pay rise is only there as a sweetener to swallow some very bitter pills on damaging changes to pensions, and a raft of workplace uncertainty.”

Ward went on to say that, as far as the industrial stability is concerned, there is no real strategy for growth. Royal Mail consistently claims that is has a plan for growth, but cannot explain it to the workforce. A statement released on July 1, 2013 by the chief executive at Royal Mail said that the offer represents the Royal Mail’s commitment to a long-term engagement strategy with the CWU and their employees.