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News that Adam Crozier, Royal Mail chief executive, is set to receive a bumper bonus will exasperate postal workers. Industrial relations at the Royal Mail are already antagonistic and in any event a 2.5 per cent basic pay offer looks unexciting. The total package for Mr Crozier, comprising cash of up to £370,000 and other benefits, could approach or even exceed £1 million. In that context, 2.5 per cent looks less appetising still.
Union leaders are already confident that strike action proposals, on which employees have until Thursday to vote, will be supported. Although the opinion poll evidence underpinning the confidence has to be taken with a pinch of salt, there is a significant risk that deliveries of mail will be disrupted. Yet it would be foolish, to say the least, for postal workers to pursue industrial action. If they seek confrontation in a fit of pique at bonus payments made to Mr Crozier, they will fall a long way short of a sensible decision.
Organisations such as Royal Mail find it difficult to attract credible managers. If the uphill struggles come without tasty compensation, our postal service would find itself bereft of adequate leadership. At the same time service standards have improved in recent months and, since Mr Crozier’s pay is related to sharper performance, it is only right he should be rewarded. Yes, it is individual postmen and women that are collecting, sorting and delivering letters and parcels in more timely fashion. And yes, Mr Crozier must prove he is solving problems creatively rather than meeting middling targets with mediocrity. But posties need direction, and productivity is primed by well motivated directors.
Postal workers should look to their own fortunes, not those of their chief executive, when deciding whether to stage a walkout. In the context of the competitive threats facing Royal Mail, a three or four hundred thousand pound bonus is neither here nor there. Much more pertinent is the fact that the post must be competitively priced if Royal Mail is to have any hope of sustaining an existence on the current scale.
Posties will price themselves out of jobs if they decide to settle only for bigger pay packets. In the name of competitiveness, posties must also embrace mechanisation. This will lead, unfortunately, to job cuts. But more jobs will be lost if the Royal Mail fails to offers customers the efficiency and value for money brought by automation. Meanwhile, pension payments to past and present postal workers can only be guaranteed by Royal Mail if it enjoys economic viability.
Customers do not lack choice. E-mail and text messages are rapidly replacing letters as the preferred medium for written personal communication. Royal Mail no longer enjoys a monopoly over trunking mail up and down the country and it may only be a matter of time before daily house-to-house delivery services are opened to rivals. Junk mail, disliked by householders but loved by Royal Mail because of the revenue it brings, also may be suppressed as enthusiasm for waste-watching grows. Rather than going to the trouble of recycling, few consumers would complain if mailshots were not sent in the first place.
Mr Crozier will deserve his bonuses more if he persuades his employees to appreciate these harsh realities and to implement the necessary restorative measures. But postmen and women will suffer most if they refuse to be persuaded.
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It's Unfortunate that the writer did not put the full story about the Posties and their industrial action.
Allan leighton has been telling them for the past 3 years how they have worked hard to put the business back on it's feet, meet quality standards and his iam has always to pay them more, unfortunetley his unable leutenatnts seem to differ.
The real problem is that when they accepted single daily deliveries they reorganised the walks to take on extra work, with the majority having to take on extra work to meet the reduction in staff and now they are asking posties to do overtime for no pay.
They are also saying that they are paid 25% too much when Allan has always told them that his ambition is to see them paid more year on year.
It's about time they managed to get their stories straight.
Yvonne Allan, Falkirk, Scotland
A common sense article at long last over this dispute. Strikes are of the 70's, it's about time Royal Mail crushed this outragious union.
Dave, london,
Thank you Stuart for your support....I think that it will not come to a strike..after all we are voting for industrial action and a strike would only be used as a last and very desperate tool.This really is a vote to force Royal Mail back to the negoiating table,from which they seem to have walked away.They think it's all over,I think not.
Postman, Romford,
It's very easy for Posties to not change whilst the world around them changes - however this will put ALL of them out of a job. The market has been transformed beyond all recognition in the past decade : the simple truth is that if the Royal Mail is to remain competitive it MUST change or die. What is not reported is that the Union is asking for a 27% pay increase, which, in this age of increased competition and falling revenues, is absolute madness. A strike will permanently damage the Royal Mail in a way it may never recover from : firms which comprise a large portion of the RM's business will leave for the competitors and never come back. A strike is an act of commercial suicide now there is no monopoly.
Mark, London, UK,
This is an argument based upon the corporate greed that I expected the unions to have jumped upon long ago.
If that privileged employee (Crozier) feels he is entitled to a 20 percent pay rise (however computed) then it is totally reasonable that ALL the other employees of the company (the postmen etc) should receive the same percentage increase. If the company cannot afford such a large increase in its pay bill then it clearly cannot afford it for Crozier either.
The Managing Director's success depends totally upon the work of the other employees. It never could be his success in isolation.
The MD / CEO / Directors are just employees after all. They just have the unacceptable privilege of largely setting their own rewards. (ie. Greed)
Brian Vallance, LEFKIMMI,
Creditable management is not what Royal Mail needs.
Competent would be better.
Paul, North Tyneside, UK
What an absolute load of rubbish.
When has it been mentioned by postal workers about Croziers's bonus? Are they voting on industrial action because of his bonus no they are voting because of the attack on their working practices and the threat of implementation of them by executive action.
Royal Mail could easily avoid this confrontation and back off and talk to the CWU but they continue to slash and burn their way through the industry leaving a trail of destruction along the way. Good luck posties the country are behind you well the ones that know what this dispute is about anyway!
Stuart Johnson, Welwyn Garden City, uk