Royal Mail pension progress is being made – union confirms

Written by Talya Misiri

Pension and pay progress is being made in the talks between the Royal Mail and its main union the Communication Workers Union (CWU), it has been confirmed.

On a social media post on Tuesday, 9 January, the CWU London Division criticised negative comments from Royal Mail employees who had complained that the negotiations were “no further forward” since November last year. The union strongly noted that these claims are untrue.

Among a list of areas including working hours, pay and pensions, that have been addressed, the CWU posted on its social media that "there is going to be one pension scheme. All pay will be pensionable including for the majority of staff who were in the Pops scheme will have all their pay in the future pensionable! There will be a genuine pay rise flowing through to all pay and pensionable allowanced instead of a lump sum.”

While it has been reported otherwise, no major announcement is to be made tomorrow, Pensions Age was told. However, the CWU will be posting an update on its Facebook page to inform its members on the talks so far.

Royal Mail has also echoed the notion that headway is being made with its members’ union. A spokesperson told Pensions Age: “Royal Mail and the Communication Workers Union have continued to make progress in talks on pay, pensions and the other issues under discussion. These talks are ongoing as both parties seek to finalise an agreement.”

Nonetheless, a CWU spokesperson explained to Pensions Age: “Nothing is agreed until everything is agreed,” therefore conclusions should not be assumed just yet.

Early in 2017 Royal Mail confirmed its plans for a new pension scheme that comprises of a defined benefit cash balance scheme and a defined contribution scheme that will be funded within its current £400m annual pension contribution.

The company also offered its employees a choice between a DB scheme and a DC scheme, which have been set up as new sections of the Royal Mail Pension Plan. Royal Mail is one of few companies replacing one DB scheme with another.

The firm’s proposals were met with considerable rejection from worker’s unions CWU and Unite, leading to support for industrial action. Nonetheless, Royal Mail won an injunction in the High Court to prevent a 48-hour strike late last year.

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