1. Taking our Pay Strategy Forward Dave Ward, DGS(P)

2. CWU has Been Successful in Recent Years Members recognise the benefits of higher basic pay. Secured agreement to maintain National Pay Bargaining. Major improvements to London Weighting without jeopardising pay for all. New structure for the future.

3. CWU has Been Successful in Recent Years Significant improvements in RRIS - maintained payments in all areas - removed clause in previous agreement to have RRIS count towards £300 Productivity - put consolidation firmly on the agenda and removed complicated hurdles. High vote in favour of last year’s deal – no strings – successful combination of percentage and flat rate increase to benefit everybody (particularly lower paid). CWU HAVE BUILT A PLATFORM TO MOVE FORWARD

4. We Have Clear Policy UK Average Basic Pay Maximising job security Better Work life Balance (Shorter Working Week, Annual Leave, Family Friendly). Safeguarding Pensions. Improving the working environment – CWU shaping future jobs in a way that is acceptable to our members. Improving the overall Benefits Package. Its all about Permanently Raising the Value and Status of a Postal Workers Job

5. Developing our Strategy - 1 Your support is key – the backing of our members essential – the need to pull in the same direction paramount. Continuing to deliver improved and co-ordinated communications. Clear blue water between us and Royal Mail. CWU Vision a race to the top –Vs- Royal Mail plans a race to the bottom. An agreement (every agreement) that locks Royal Mail into CWU Vision (not the other way around) A Framework Agreement that releases benefits and introduces change in a balanced and measured way. A very firm stance with Royal Mail. Disputes on our terms not theirs.

6. Developing our Strategy - 2 Pay policy will need to be adapted for different grades e.g. Engineers, LGV, Clerical and Doorkeepers etc. Achieving UK average basic pay will mean a combination of efficiency, investment and restructuring. We will have to embrace and shape some of Royal Mail’s agenda.

7. Key Issues - 1 Efficiency/Productivity – As we increase pay we must move away from the “what do I get locally for my savings mentality”. Efficiency savings must become part of ongoing guaranteed pay (self funding is not the debate). Pay restructuring – we must lay the ghost of the Way Forward to rest. -It is not about robbing Peter to pay Paul. -It is not about pay protection. -There are still monies that could be utilised in basic pay (some allowances may change). -It may be about having a fundamental look at a new pay structure that better reflects the future growing demands on our members’ jobs.

8. Key Issues - 2 London Weighting and RRIS are not going away. –The Union must deal with these issues factually. –It needs to take account of our members’ disposable income. –We all need to recognise, rather than weaken the Union, LW and RRIS are the tools that protect National PayBargaining.

9. Key Issues - 3 Do we need an agreement on Share in Success? -We are opposed to any change in ownership. -But the Union must be at the centre of anything that involves our members receiving money. -We need to incorporate the money from share in success into our pay strategy.

10. Key Issues - 4 Negotiations on pensions are imminent. -Our ambitions of basic pay clash with the pension deficit. -Combating age discrimination and dealing with retirement age will be on the agenda. -How will the deficit be funded. -How do we protect the final salary scheme.

11. Key Issues - 5 We need to shape the overall benefits package. -Better work life balance – Shorter Working Hours, Annual Leave and Family Friendly policies. -Enhancing terms and conditions for part timers as well. -Royal Mail’s raffles and first line fixshould be in the pot.

12. Key Issues - 6 MTSF People Issues. -MTSF was a good deal (exit package, pay protection) but was the timing right? -In any future debate we must be clear on whether we priorities those who wish to leave, or those who wish to stay.

13. Key Issues - 7 Monthly Pay. Overtime and SA.

14. Key Issues - 8 What timescale to achieve our policies and secure a deal. What structure will the deal take?

15. Summary We have an ambitious policy – it requires original thinking and committed actions. Lets raise our members’ expectations. “CWU is totally committed to permanently raising the value and status of a postal workers’ job”.