RNS Number : 0842X
International Distributions Svc PLC
21 April 2023
International Distributions Services plc
(Incorporated in England and Wales)
Company Number: 8680755
LSE Share Code: IDS
21 April 2023
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the company's obligations under Article 17 of MAR
AGREEMENT REACHED WITH COMMUNICATION WORKERS UNION
International Distributions Services (IDS.L) is today providing
further detail on the agreement reached between Royal Mail and the
Communication Workers Union (CWU).
The Business Recovery, Transformation and Growth Agreement has
been ratified by CWU's Postal Executive Committee and will be put
to a ballot of the union's membership with a recommendation to
approve. The ballot is expected in the coming weeks.
Context to the agreement
Royal Mail is currently materially loss making. This agreement
is an important step forward in the turnaround of Royal Mail and,
if approved by the CWU membership, represents a good outcome for
customers, employees and shareholders.
The agreement provides a platform for the next phase of
stabilising the business whilst continuing to drive efficiency and
change. The operational changes in the agreement are designed to
improve competitiveness, particularly in next day parcels, reduce
cost and environmental impact, and improve quality of service for
our customers. A three year pay deal will provide certainty for our
employees and ensure Royal Mail remains the industry leader on pay,
terms and conditions.
The key initiatives in the agreement are:
-- Later start times: From March 2024, start times in delivery
will be moved back to help Royal Mail respond to the market demand
for more next day parcels, reduce our impact on the environment
through the removal of 18 flights a day, improve quality of service
and create greater capacity to grow. A programme of work on the
pipeline will seek to limit changes to start and finish times in
delivery by 60 minutes, with the option to move times up to 90
minutes if needed. The last letter delivery time will move to
4.30pm at this time.
-- Seasonal working patterns: From Autumn 2023 we will deploy
new seasonal working patterns. Delivery postmen and women will work
39 hours per week in the peak Christmas season, 35 hours per week
in the quieter summer season, and 37 hours for the remainder of the
year to better reflect the seasonal variations in letter and parcel
-- Optimised single parcel network for larger parcels :
Currently there is duplication across the Royal Mail and
Parcelforce Worldwide networks, with both companies carrying the
same format of parcels and visiting the same customers on the same
day. The creation of an optimised single parcel network between
Royal Mail and Parcelforce Worldwide will maximise synergies
between the two brands and improve competitiveness in the delivery
of larger parcels.
-- More efficient indoor mail preparation: Currently postmen and
women spend up two hours a day re-sorting mail before their
delivery round. Under this agreement we will reduce the amount of
time spent sorting by 20-35 minutes, so that more time can be spent
delivering to our customers.
-- Sunday working: New employee contracts will include a
requirement for regular Sunday working, enabling Royal Mail to grow
its seven day parcels business and adapt to changing customer
-- The agreement includes a commitment to no compulsory
redundancies for the life of the agreement. There will be a joint
review of this position in April 2025 to consider whether
circumstances allow for the company to extend this commitment.
-- The agreement also covers changes to sick pay, attendance
standards, ill health retirement, and agreement on revised
contracts for new starters (introduced in 2022)
Pay offer and profit share scheme
The agreement includes a 10% salary increase and a one-off lump
sum of GBP500 for CWU grade employees in Royal Mail and
Parcelforce. This is broken down as follows:
-- The previously consolidated 2% pay rise that applied from 1 April 2022;
-- A consolidated 6% pay rise applying from 1 April 2023;
-- A one-off non-consolidated lump sum payment of GBP500
(broadly equivalent to 2% of pay and pro-rated for part-time
-- A consolidated 2% pay rise applying from 1 April 2024.
In addition to the pay increases, agreement has been reached on
a profit share scheme over the life of this agreement. Subject to
Royal Mail returning an adjusted operating profit in any financial
year up to and including 2024/2025, 20% of adjusted operating
profit will be distributed as a one-off payment to employees, paid
after publication of the company's audited accounts.
The agreement can be found at:
International Distributions Services plc will publish its Full
Year Results on 18 May 2023.
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(END) Dow Jones Newswires
April 21, 2023 06:33 ET (10:33 GMT)
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