THE WAY FORWARD

WAY OF WORKING AGREEMENT

INDEX
Introduction
Coverage
Objectives
Principles of Agreement
Specific Measures
Deployment
Annexes

INTRODUCTION

1. This agreement between Royal Mail and CWU sets out new ways of working for all operational units in Royal Mail. It is part of the “Way Forward” programme and follows on from the Agreements on Delivery, Conduct & Attendance and the Performance Bonus Scheme. This Agreement will be a key enabler and the final step in securing and introducing improvements in terms and conditions, including a Shorter Working Week, harmonised meal reliefs, enhanced annual leave, and pay restructuring, which are contained in the parallel agreements on Annual Leave, Shorter Working Week, Meal Breaks and Pay and Grading.

COVERAGE:

2. This agreement covers all employees in the new single operational postal grade formerly graded postmen and postwomen (including Cadets), PHG and Streamline levels 1-6. (excluding Cashco employees), and in the new single operational support grade replacing Doorkeeper, Liftman, and bagroom Cleaner.

OBJECTIVES:

3. This agreement builds on the objectives of the agreement on the Performance Bonus Scheme, which addresses the need to prepare the Business for future competitive challenges and the shared objectives around improved and re-shaped earnings, terms and conditions and job security. The joint objectives will have equal status under the terms of this Agreement.

4. The objectives of this agreement are:

a) to improve customer satisfaction through delivering service to specification consistently and reliably throughout the Business;

b) to improve efficiency by ensuring accurate alignment of staffing to workload;

c) to create a better working environment through ensuring a fair approach to allocation of duties, overtime and annual leave

d) to provide better understanding and opportunities for movement and development through and across the Business

e) to develop the capability for speedy and successful introduction of change whilst protecting services to our customers in a way that builds on the principles within the Industrial Relations Framework.

PRINCIPLES OF AGREEMENT

5. This agreement is founded on some key principles that must all be met to establish confidence in moving forward on all the agreed objectives set out in section 4.

FILLING OF VACANCIES/JOBS

6. The key requirement is to ensure that all jobs are filled by individuals with the right skills for the job, and that this is done in a way that both takes account of personal preference, suitability and minimises disruption to the customer and employees. Seniority will be used to fill the majority of jobs, because the Business recognises the value of employees’ experience and length of service. Those jobs that require more specialist skills have been identified and are listed at Section 15. They will be filled using an objectively-based selection process. The necessary training will be given prior to appointment.

SCHEDULING STAFFING

7. It is essential that attendance patterns and procedures for allocating resource operate in a way that ensures that staffing is there when required by the workload. This workplan and its supporting resource plan will be the subject of regular consultation between Royal Mail and the CWU, to ensure the information remains current.

The Agreements on Delivery Issues and the Performance Bonus Scheme contain the processes for dealing with changes to staffing arrangements and the objective of achieving five day week working and socially acceptable attendance times. This Agreement provides for the exploration of new attendance patterns and also deals with the practices of Staff Resourcing Units. These units should operate effectively and ensure that overtime and annual leave are allocated fairly, in accordance with Working Time Regulations and any collective national agreements with CWU.

EMPLOYEE DEVELOPMENT

8. All employees must be enabled to maintain and update their existing skills and have the opportunity for further development within Royal Mail. In addition to the maintenance and updating of job skills, this process will encompass Business awareness, product knowledge and understanding the needs of our customers. This will be done in a structured way that acknowledges and supports the needs and aspirations of individuals and the needs of Royal Mail as a business.

RESPONDING TO THE NEEDS OF THE OPERATION

9. All work areas must have workplans, based on workload forecasting and pipeline specification, which ensure that movement between areas is on a preplanned basis. The nature of the operation in Royal Mail is such that there are variations in workload from day to day that cannot always be predicted. Therefore, robust contingency arrangements must be in place and reflected in job descriptions. Over and above these contingencies there may be exceptional occasions, such as a major collection failure, when employees may be required to move on an unplanned basis. These movements must be on the basis that staff are fully trained to perform tasks to which they are moved.

INTRODUCING CHANGE

10. All major projects must have resource plans that deal with all employee issues well in advance of deployment. This will involve full consultation and negotiation with CWU Representatives through the Industrial Relations Framework. All such resource plans must be consistent with the objectives, principles and measures contained within this Agreement and conform with other National agreements. Changes that do not require alterations to attendance patterns or agreed job descriptions will be communicated and deployed quickly and effectively with the involvement of the employees concerned or affected. Details of these minor changes will be notified in writing to the local CWU Representative, prior to implementation, displayed in the workplace and a record will be kept.

PROCESSES AND PROCEDURES

11. All processes and procedures, including the capture and processing of staff attendance data, must operate effectively and efficiently, in a

Way that is practical and cost effective, recognising the requirements of the Working Time Regulations.

SPECIFIC AREAS

12. In order to meet the key objectives of this agreement and within the principles set out above in sections 5 to 11, Royal Mail and CWU agree the following specific areas:

SENIORITY

13. 1 An overhaul of the seniority mechanism is unavoidable because of the new single operational Postal grade that will replace the Postman/woman, PHG, SL1-6 and Cadet grades, the new operational support grade that will replace the Doorkeeper, Liftman and bagroom Cleaner grades, and the introduction of new ways of working including better resourcing procedures.

2 This agreement is mandatory and sets out the way that seniority will be defined for local units on and from the date of this Agreement. Any local agreements that conflict with this agreement will cease on and from that date.

3 Measures to improve resourcing procedures and ensure that all jobs are performed by suitable trained employees, with employee capabilities better matched to particular roles (especially where these involve specialist skills), are contained elsewhere in this agreement. Within this context both parties also recognise the part that seniority can play in reflecting the loyalty, service and experience of employees to Royal Mail as an organisation, and the value of this experience to the business.

4 The general principle will be that, since the employees covered by this agreement are all in direct entry grades, seniority is based on the length of individual service. Exceptionally, every effort will be made to accommodate individuals who for serious personal or domestic reasons, need to be treated differently. In such circumstances, discussions will take place with local CWU representatives. Seniority for all employees in the operational support grade will be based on the commencement date of service in that grade (or in the pre-existing Cleaner, Liftman or Doorkeeper), and for all employees in the operational postal grade on the commencement date of, service in that grade (or in the pre-existing Postman/woman, PHG, SL1-6 or Cadet), irrespective of individual seniority positions in the ceased grades. In all cases except as set out below, this will mean that in future seniority will be based on the date that each employee, whether full- or part-time, first joined the business.

5 In those cases where an existing Post Office employee moves between or into either the operational support or operational postal grades, their seniority will be based on the date of entry to the grade concerned. However exceptionally where an employee moves into Royal Mail on level transfer from a grade in another business that is broadly equivalent (for example, a Parcelforce or Cashco postal employee moving into the operational postal grade or a Romec Cleaner moving into the operational support grade), then previous service in that business on that grade will count towards seniority.

6 All service within an appropriate grade, whether on permanent or temporary basis, will count for seniority purposes, with the exception of any periods worked on a casual contract, or during a career break or sabbatical. Unpaid leave will count provided there is no break in contract. Service after age 60 will continue to count. However service must be continuous for seniority purposes, with periods prior to any break in contract (due to re-employment, for example) not generally included, unless there are exceptional circumstances applying to particular cases that are agreed at local level.

7 Because seniority is based on length of service there will be no need to adjust seniority when employees transfer between offices, whether on a voluntary or compulsory basis.

8 Because seniority is based on length of service, employees reverting to either the operational postal or the operational support grade will return to the seniority they would have achieved if they had continued in the original grade rather than being promoted. Similarly, in all cases where seniority has been removed in the past, for whatever reason, individuals will return to the seniority to which they are entitled based on their actual length of service.

9 Where several employees start on the same day, the following factors will determine the relative order: firstly, any periods of Post Office service on other grades, secondly, date of selection and thirdly, date of birth.

10 Lists based on seniority assessed on the new basis will be produced, maintained and displayed in all units within the resourcing area. Because seniority will in future be transferable between locations and based on length of service it will be relatively straightforward to integrate employees from outside of the area (e.g. level transferees) into these lists.

RESOURCING TO JOBS ( F/T and P/T ) THAT DO NOT REQUIRE SELECTION BY SKILLS

14. 1 Royal Mail and CWU recognise the need for Royal Mail to have the facility to recruit directly to full-time posts in all operational units. This agreement therefore replaces the relevant provisions of the SFMB and modifies paragraph 3e) of the Agreement on Delivery Issues, accordingly. Both parties also recognise the need to provide employees with the opportunity to change jobs in a way that fulfils their legitimate development aspirations, meets possible personal needs and avoids disruption to service and to customers.

2 The principles underpinning the new Resourcing Agreement are set out below.

External recruitment to full-time posts is essential to ensure that RM has the widest choice of candidates from which to select

Existing and future part-time employees will continue to have opportunities to gain full-time employment locally and further afield

The filling of posts should result in minimum disruption by ensuring that a full-time vacancy does not trigger a series of moves

The practice of “most senior individual” will be used when filling non-specialist jobs internally. The only jobs not filled on this basis are specified in Section 15: Selection by Skills.

Jobs advertised externally will be filled on an open resourcing basis and offered to the most suitable person

3 The process for resourcing full time and part time, non-specialist posts will comprise one of four options, in the following order, unless agreed locally to change this order:

internal advertisement of the job within the currently-recognised resourcing unit/s

deployment of existing surplus employees

the acceptance of an existing employee from the wider resourcing area or another resourcing area who has previously had his/her name placed on the transfer list for that resourcing unit

external advertisement

4 Where a full time post is advertised internally, it will be available to all full time employees and part time employees, who have opted for full time employment, in that resourcing unit. The posts will be filled on the basis of “most senior individual”. Where a part time post is advertised internally, it will be available to all employees as above and filled in the same way.

5 6 The resulting vacancy will be temporarily filled by a reserve, a surplus employee, a transferee from within the wider resourcing area or another resourcing area or by direct recruitment in line with the process above. When the number of consequential vacancies in the resourcing unit reaches 5%, or after a period of six months following the last such exercise (if earlier), the posts will be advertised in the resourcing unit, en bloc and filled on the basis of seniority. If this results in any further vacancies, these will be filled, using the same process as above.

7 Existing part time employees, in post at the date of this Agreement, will be asked if they have an interest in full time employment. A list will be maintained of these employees. Part time employees on the list will be eligible to apply for internally-advertised posts, alongside full-time employees. They would then pick up the post based on their seniority. If unsuccessful they will be eligible to apply for future jobs advertised internally until appointed.

8 Where a full-time vacancy is advertised externally, all part time staff will be able to express an interest. They will not have a right to the vacancy and will be considered alongside external applicants using the same criteria. Where unsuccessful, the reason will be explained in writing and they will be invited to discuss this with their line manager. They will remain in their current post and will have the opportunity to apply for future externally advertised full time vacancies.

9 Employees taking up internally-advertised posts will be dedicated to them for a minimum of 12 months. No applications for job moves will be considered during that period, unless they are: for specialist posts; as a result of serious personal or domestic reasons, following discussions with local CWU representatives

10 RM and CWU locally will monitor the operation of this Agreement to ensure that the principles set out above are upheld and that a reasonable balance is secured between the Business need to have greater access to the full-time job changer market and the legitimate interests of existing and future part-time employees.

SELECTION BY SKILLS

15. 1 All front line jobs performed by the new multi-skilled single operational grade will have the same core capabilities. However, it is recognised that there are some jobs that require more specialised skills. An objective selection process will be introduced for these jobs.

2 These jobs will be filled by the most senior person who has achieved the right standard for the job during the selection process. Sick, attendance and conduct record will only be taken into account where these are relevant to the work. Where training is required by the most senior suitable person, this will be given prior to appointment

3 Resourcing procedures will be based on the Resourcing Area. This will in all cases be the Royal Mail administrative area (i.e. the areas managed by Area Managers, subject to review in the light of any organisational changes). Jobs filled internally will be available to employees currently working in any office within the Area concerned.

4 5 Vacancies for specialist jobs will be advertised throughout the resourcing area. Applications should be made in writing to the Resourcing Unit. Employees who wish to be considered for specialist jobs in general should register their interest via the Resourcing Unit or include it in their own Development Plan, a copy of which will be held by the Resourcing Unit (see section 19). This information will be used for training planning. Where a vacancy arises, equal consideration will be given to individuals who have registered their interest through Development Plan or through the Resourcing Unit in writing at the time when the vacancy is advertised. The objective is to allow and maintain openness and fairness in relation to resourcing specialist posts.

6 The specific jobs that require specialist skills and which will be subject to selection are: Resourcing Unit (Bookroom); DOM Support; Traffic Office; Enquiry/Callers’ Office; Major Customer Collection drivers (to be jointly defined at National level); Benefits Agency/ Customer Mailroom; Travelling Post Office; Leadership roles (formerly PHG “A”); Heavy Goods Vehicle Driving (HGV); Postbus (PSV); VCS/MAA; IMP/MTT; Advanced TPM; non-school training.

7 All specialist jobs will have consistent job descriptions, which will identify the specialist capabilities and which will be standard throughout Royal Mail.

8 Employees who are regarded as suitable should be dedicated to these duties for a minimum of 12 months. If after 12 months the employee wishes to change jobs, they must give adequate notice to enable a suitable trained replacement to be found before release can be allowed. The replacement must be available to take up post no later than six months after notice has been given. The process for resourcing specialist posts will be one of four options, in the following order, unless agreed locally to change this order:

deployment of existing surplus employees with the appropriate skills

internal advertisement of the job within the resourcing area itself

the acceptance of an existing employee with the appropriate skills from another resourcing area who has previously had his/her name placed on the transfer list for that resourcing area

external advertisement .

9 This decision will be taken locally, but normally jobs will be filled by internal advertisement, by a surplus employee or a transferee before there is recourse to external advertisement.

10 Where a post is advertised internally then it will be advertised to all employees in that resourcing area, full- and part-time. Candidates will undergo an objective selection procedure, designed to assess individual competences against the skills required for a particular job. Where more than one candidate possesses the required capabilities, selection will then be on the basis of seniority.

11 The resultant vacancy, be it full or part-time, will be filled as specified in section 14, unless it too is for a specialist post, in which case the provisions of this section will apply.

RESOURCING JOBS DURING MAJOR CHANGE

16. 1 The new standard resourcing procedures covered in the previous two sections of this agreement benefit employees by giving them regular opportunities to apply for a change of job, both within their unit and their resourcing area. These incorporate and standardise the current practices of rolling re-signs, based on seniority. This section deals with the only other circumstance where people change jobs. This is where jobs alter significantly as a result of the introduction of major change. The overriding aims for managing all such exercises must be to minimise customer disruption and avoid unnecessary displacement of employees in a way that conforms to equal opportunities legislation. This will be ensured by timely planning and full CWU involvement at all stages of the exercise.

2 Major change is defined as: the relocation or merger of units a significant process alteration arising from automated working or reshaping of the pipeline delivery revisions, which involve significant replotting of walks or significant restructuring of attendance patterns (e.g. full-time/part-time mix, five- day weeks, ‘longs and shorts’ or ‘night plus a first delivery’, where they are agreed) For a reselection exercise to be considered the extent of such a change must be that it has a significant impact ( in content and/or attendance times ) on over 1/3 of the jobs in the unit.

3 Major change is not defined as: revisions of staffing arrangements, using the procedures agreed in the Performance Bonus Scheme, to implement the Performance Bonus Scheme, Shorter Working Week, Meal Relief Harmonisation and Work Time Learning or to improve alignment of staffing to workload in order to make performance improvements, unless they fall into the categories of major change defined in paragraph 2 above. delivery revisions which do not involve significant replotting of first delivery walks. Where such a revision displaces an individual, or where an individual’s earnings are affected, local discussions shall take place in line with the principles contained in Sections 14 and 15, which may vary the order to protect the individuals displaced. Timely planning will reduce the number of people affected in this way by the revision.

4 Where there is a major change as defined above, the key principles for dealing with the re-sign are: employees whose jobs remain unaffected by the major change will retain them; these employees will have the option of applying for any of the jobs involved in the re-sign resulting from the major change, provided they have completed a minimum of twelve months on their existing duty (see Section 14 and 15). If this creates a resultant vacancy that would be filled using the normal resourcing procedures in Section 14 or 15; employees taking part in the re-sign will be given the opportunity to advise of any personal circumstances, which necessitate a particular duty type or attendance pattern and, where practical, this will be accommodated. Where this happens, there will be prior discussion with the local CWU rep; the re-sign and all consequential training must be planned into the revision process; specialist jobs that are reselected against are filled using the procedure in Section 15; the re-sign will be run using a national standard procedure based on seniority, and not take more than four weeks to complete. In very large units, agreement to an extension to this deadline must be given by the Head of Performance following local discussion between management and CWU. At the end of the exercise all jobs and reserve posts must have been signed for. Where this process revision displaces an individual, or where an individual’s earnings are affected, local discussions shall take place in line with the principles contained in Sections 14 and 15, which may vary the order to protect the individuals displaced. Timely planning will reduce the number of people affected in this way by the revision.

5 All major change schemes ( as defined above ) must be planned so as to have in place an agreement covering selection, placement and training, minimising and then managing surpluses and all other employee issues at least 13 weeks before the Ready for Service ( RFS ) date, or dates if the project is in phases. ( Planning and discussions through Strategic Involvement and the IR Framework should start at least 12 months in advance of any planned major change ). This agreement must conform to existing national agreements. In the event of any failure to reach agreement by this date, the points of difference will be referred to Service Delivery Headquarters and CWU Headquarters for resolution.

RESOURCING GOOD PRACTICE

17. 1 It is acknowledged that there are a wide variety of standards and practices in the resourcing of the operation. This, together with the failure to forecast workload accurately, leads to ineffective and unreliable allocation of staff, endangering quality and customer satisfaction. This agreement specifies the standard processes and practices, which will need to operate in all units in order to resource the operation effectively. These are:

2 “Bookroom" title to be replaced by “Resourcing Unit” in every Mail Centre.

3 Standard workload forecasting processes

4 Use of new computerised Resourcing Unit systems.

5 Projected workload, based on accurate daily/weekly forecast traffic to shift and work area, together with historic data, will be used to establish realistic resourcing requirements for at least three weeks in advance. This information will be available on an open-book basis to the CWU. The resource plan will be discussed with the CWU. Where there is a need to vary the resource plan to meet unforeseen traffic variations and/or resourcing problems which results in recourse to ad hoc overtime and/or supplementary staffing or lapsing, there will be prior discussion with CWU. These issues will be dealt with using the processes in the IR Framework.

6 Hours of operation and the staffing levels of the Resourcing Unit will be aligned to the workload requirements of the unit using national standard procedures and performance standards.

7 Introduction of signing-on in work areas. All failures to be reported to the resourcing unit for recording and to the shift manager for operational response, within 15 minutes of commencement of duty.

8 Each Unit must maintain a Skills Register to ensure that individuals in that Unit have the required core skills, together with any special skills, before job/overtime/ Scheduled Attendance is allocated. Copies of the Skills Register will be made available in the work areas. Where there is a reasonable expectation that an individual will need core skills, which they do not currently have, then training must be a priority. On this basis, no employee will be denied opportunity to receive the appropriate training to enable them to volunteer for pre-listed overtime. For specialist skills, training must be on a pre-planned basis.

9 Annual Leave to be allocated in line with the Annual Leave Agreement in a way that fully meets operational need and maximises employee choice.

10 Scheduled Attendance will operate to contract and be signed on an annual basis and substitutes will be checked against the Skills Register

11 Where an individual is unable to attend for Scheduled Attendance the Resourcing Unit must be advised, giving at least 24 hours’ notice, together with the reasons for non-attendance. The Resourcing Unit will then reallocate the SA to the nominated substitute. Where this is not possible, the attendance will be treated as an unforeseen absence and covered with ad-hoc overtime or lapsed.

12 Pressure overtime should be pre-listed, as far in advance as possible.

13 Overtime aggregate (to include overtime, Scheduled Attendance and weekend overtime) to be run to a common method.

14 Commitment on both sides to confirmed pre-scheduled overtime with agreed standard penalties for failure to attend for both Scheduled Attendance and overtime.

15 Ad hoc overtime to be determined by line managers and allocated by the Resourcing Unit using the new standard aggregate system.

16 Level of reserves to reflect changed annual leave arrangements

17 Reserves to be allocated to shift/work area for line management purposes but deployed on any shift according to demand, with due notice and appropriate training

18 Multi-skilling of leave reserves to enable redeployment if required.

19 A number of these processes and practices are already in use in some Areas and are specified here for the sake of completeness. Others are currently being trialled in co-operation with the CWU, in a small number of locations. The intention is to produce an integrated resourcing process, drawing on best aspects of the trials and subject to National review, in advance of any deployment.

REAL TIME STAFF HOUR RECORDING

18. 1 Royal Mail and the Communication Workers’ Union recognise that the collection and recording of information on attendance and hours worked needs to be streamlined. More effective use of technology to do this will enable Royal Mail to monitor the number of hours worked by employees in line with the requirements under the Working Time Regulations and provide more accurate and timely management information, including automatic uplift to payroll.

2 Alternative methods of recording time will be trialled jointly by the business and the union at one or more sites, with agreement to speedy deployment on a national basis if successful. The methods to be trialled will include automated capture of time and attendance data. Measures to be used in assessing the alternative methods will include cost effectiveness, confidentiality, robustness of technology.

3 Time recording shall not take place from one area to another and shall only be used for logging on and off, including start and finish of overtime.

ALTERNATIVE STAFFING METHODS

19. This agreement will put in place more responsive and reliable resourcing arrangements. However, it is recognised that there could be new and different resourcing models, which offer improved alignment of staff to workload as well as varied attendance and remuneration patterns that may be more attractive to some members of the staff. Under this element of the Agreement, Royal Mail and CWU commit to exploring various resourcing options with the intention of trialling new resourcing models and deploying these if they prove successful, following agreement at RMSHQ and CWUHQ. The aim is to establish trials in a number of different geographical areas by January 2000, and to review progress in March 2000.

EMPLOYEE TRAINING AND DEVELOPMENT

20. 1 In line with Royal Mail and Post Office training and development policy, priority will be placed upon training and developing understanding the Business and requirements that will allow all employees to develop in the future.

2 First priority will be given to the improvement of the skills, knowledge understanding and behaviours needed to carry out immediate and future roles, including the development of new skills, knowledge and ideas as the business changes and moves forward.

3 Second priority will be the enhancement of the core capabilities needed to maintain personal skills required to perform the job or task currently carried out.

4 The third priority will be based on personal ambitions and aspirations where the Post Office will contribute to continued training and development. This will be on a voluntary basis .

5 Both Royal Mail and the CWU recognise the importance of identifying and fulfilling training and development needs of individual front-line employees and widening horizons for employees in a whole range of new areas. This needs to be done in a structured and systematic way that acknowledges and supports the needs and aspirations of individuals and the needs of Royal Mail as a business to succeed in future. Training plan actions to meet future job requirements will be directly linked to the manpower plan.

6 There will be two basic strands to the new development/training process:

Training in basic product/business understanding and awareness, which will be provided for and undertaken by all employees, and training for the individual’s current job

An individual development process which will be carried out on a voluntary basis in each work unit, but be available to all employees. The start of the process shall be self-nomination.

7 All employees will have the opportunity for and access to individual training and development and an individual plan, that includes actions to:

maintain and improve skills

prepare him/her for future job requirements

and, where appropriate,

prepare him/her to meet future realistic career aspirations of individuals and the needs of Royal Mail as a business.