Royal Mail has promised to try to reshape the company and its working practices without making compulsory redundancies, in a landmark deal agreed this week with the Communication Workers Union.
But the company refused to comment on how many jobs it intends to cut as a result of the modernisation agreement.
One source close to talks on the deal – finally unveiled this week after a long delay and at least one threatened walkout by the CWU – suggested Royal Mail is seeking 24,000 job cuts over the next three years. The company employs nearly 193,000 staff across all businesses, including the Post Office.
A CWU spokesperson said of the agreement: “It increases job security because of the assurances that we’ve got around the ratio of full-time to part-time and it allows the company to modernise and be more competitive.” They added Royal Mail had not given the union a figure for job losses. Both sides have praised the agreement as securing the company’s future.
In managerial jargon common to the entire 79-page document, the agreement says that jobs will be reduced “utilising normal employee turnover and where necessary early voluntary retirement and voluntary redundancy”.
Many of the cuts are likely to happen as Royal Mail shuts mail centres across the country. The Crewe centre, employing 900 staff, is due to shut this summer, and it is unclear how many staff will transfer to Warrington 20 miles away.
The document describes the changes as “a mail centre and RDC rationalisation programme that provides a lean, fit-for-purpose, standardised and modern pipeline”.
Royal Mail may also save money by replacing some full-time with part-time roles. Twenty-two per cent of staff are currently part-time, but under the terms of the agreement it can increase this to 25 per cent during the next three years.
The union has agreed to changes in working practices, including introducing walk sequencing machines to cut delivery preparation times and the abolition of short working days on Saturdays. Delivery staff will be entitled to more Saturdays off in return.
All staff affected will receive pay rises adding up to 6.9 per cent over the next three years and £400 once the union’s membership accept the agreement.
They will also receive £1,000 each after changes are carried out in their workplace. Further bonus payments are also payable.
A Royal Mail spokesperson refused to answer any questions about the agreement, saying they were not going to “get into the detail”.
