MANAGING THE

SURPLUS FRAMEWORK

Administrative and Operational Grades


Consignia plc

Managing The Surplus Framework - Administrative and Operational Grades

This Framework, which applies with effect from 18 March 2002, consists of a series of documents containing all the information relevant to the Consignia plc and CWU joint approach to the management of Surplus Employees and proposed redundancies in respect of all permanent Administrative and Operational Grades. For the avoidance of doubt this Framework does not apply to Administrative and Operational Grades on a temporary contract of whatever nature, including a "short-term temporary contract". The Framework will always be deployed consistently with Consignia values and the principles set out in the Guide to Deployment of Managing the Surplus Framework. A glossary of terms used throughout the Framework follows.

The Managing the Surplus Framework (MTSF) will apply in all cases where a surplus situation is expected to occur with the potential for redundancies which will warrant the application of Statutory consultation and notifications. It will also cover those situations where redundancies are averted by the application of the principles of the MTSF at an earlier stage, prior to the point when statutory consultation would have been required. In all such cases the provisions of the policies contained within this framework will be applied. No employee will be disadvantaged or fail to be protected by the provisions of the MTSF policies because they have cooperated in early moves to other jobs or businesses which have alleviated the need for application of later stages of the MTSF processes such as the need for Voluntary Redundancies.

Consignia will review this Framework jointly with the CWU within twelve months of its implementation and in the light of experience and the prevailing commercial needs will make such amendments as are deemed necessary.

Contents:

1 Managing the Surplus Policy

Appendices:

1. Bumping and Preference Policy

2. Pay Protection Policy

3. Buy Down (grade) Policy

4. Buy Down (hours) Policy

5. Criteria for Offering Voluntary Redundancy

6. Voluntary Redundancy Terms

7. Excess Travel Expenses Policy

8. Age Retirement and Retention Policy


2 Supporting You Through Change

3 Questions & Answers regarding the Framework

4 Reducing The Surplus (version 2)

5 Guide to Deployment of Managing the Surplus Framework

6 Roles & Responsibilities: Managing the Surplus

7 Resourcing Process

8 Standard Forms


GLOSSARY OF TERMS USED

IN THE MANAGING THE SURPLUS FRAMEWORK

- ADMINISTRATIVE AND OPERATIONAL GRADES

Administrative Grades

Employees in administrative and analogous grades typically represented by the CWU. These include all LAs, POs, PAs and CSAs (irrespective of their work area) and those who may not be in what is deemed to be administrative work e.g. Call Centres or Counters and Cash Handling Centres, but whose work would be analogous to administration when seeking suitable alternative work. This includes counter clerks, typists, secretarial grades and IT administrative employees at the appropriate level.

Blocking

This is the term used to describe a situation where an employee is performing a role, which is less than their substantive grade whilst still attracting the rate of pay associated with their substantive grade.

Bumping

The situation where a volunteer who is not a Surplus Employee has (through a preference exercise) expressed an interest in Voluntary Redundancy and is replaced by a Surplus Employee. In those circumstances, the employee who is replaced will leave Consignia by reason of redundancy on Voluntary Redundancy Terms.

Gaining Business Unit

The Business Unit in which a Surplus Employee is ultimately placed into suitable alternative employment. This may be the same as the Parent Business Unit.

Jobshop

Jobshop is a unit within Services Group whose role is to provide policy advice and support and the deployment of the processes contained within the Managing The Surplus Framework. It provides an Internal Agency role (including matching processes), people change advice and support, line management of staff whose jobs have ceased to exist, outplacement support, and strategic manpower data provision.

Managerial Grades

Employees in jobs from grade ML5 or equivalent grades or pay bandings up to and including Band 7 (or equivalent). These employees are typically represented by the CMA.

Managing the Surplus Process

The process described in the Managing the Surplus Policy.

Matching Model Database

The 'Matching Model' is a database that enables Administrative and Managerial Surplus Employees to be matched against job vacancies. By inputting information about an employee such as work, home location, grade and skills, and vacancies (including any created by Bumping) the model can match individuals against suitable vacancies.

Operational Grades

Employees typically represented by the CWU who are engaged in post person or analogous work or engineering technical grades. This includes security crews in Cash Handling and Distribution (CHD); postal operatives in Service Delivery (SD); and drivers and delivery staff in Packages and Express (P&E) and Logistic Solutions (LS).

Parent Business Unit

The Business Unit that has ultimate responsibility for an employee immediately prior to that employee being declared to be a Surplus Employee.

PCA

People Change Adviser

Redeployment Process

The process by which the search for suitable alternative employment for Surplus Employees is conducted. The Redeployment Process is set out in Reducing the Surplus.

Surplus Employee

A permanent employee whose current job has disappeared or will disappear within a known time frame, or who has been selected from a pool as surplus.

Voluntary Redundancy

The situation where a Surplus Employee opts to leave Consignia on Voluntary Redundancy terms.


National Agreement between CWU & Consignia plc

Managing the Surplus Framework - Administrative & Operational Grades

CWU and Consignia concluded a Heads of Agreement on 8th March 2002 on Consignia's proposals for Managing the Surplus Framework policies and processes relating to CWU represented Grades. Since then detailed discussions have taken place between the parties to finalise the precise wording. As a result detailed agreement has now been reached.

This agreement encompasses the Managing the Surplus policy (detailing the principles by which a surplus situation will be managed) and a number of subsidiary appendices relating to:

· Bumping and Preference Policy

· Pay Protection Policy

· Buy Down (Grade) Policy

· Buy Down (Hours) Policy

· Criteria for Offering Voluntary Redundancy

· Voluntary Redundancy (compensation) Terms

· Excess Travel Expenses Policy

· Temporary Promotions Policy

· Age Retirement & Retention Policy

Additionally the agreement contains processes regarding Redeployment, Managing the Surplus, and Resourcing which are contained within agreed documents entitled:

· Reducing the Surplus

· Resourcing Process

· Roles and Responsibilities.

The Managing the Surplus Framework will be implemented with effect from 18 March 2002. It is intended to apply, at least for the period of major organisational change over the next few years, and will be the subject of regular joint review.

Any questions of interpretation or principles relating to this agreement will be resolved by CWU head office and Consignia Group Centre.

For CWU                                              For Consignia

Ray Ellis ……………………………   Peter Hall …………………………………..

Assistant Secretary                             Head of HR Strategy and Policy

Andy Furey…………………               Geof Hansford-Adams ……………………..

Assistant Secretary                            Group HR Strategy and Policy Manager

                                                              Steve Mitchel ……………………………….

19 April 2002                                       Group Personnel