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Royal Mail has awarded its chief executive hundreds of thousands of pounds in bonuses in a move that is likely to increase the prospect of an all-out strike over pay, The Times has learnt.
Adam Crozier is understood to have received a bonus of up to £370,000 and further benefits, taking his total package to more than £1 million.
His award comes as the Communication Workers Union is holding a strike ballot over a pay offer of 2.5 per cent or a £600 lump sum. The union is increasingly confident of winning the ballot, which could trigger the first national postal strike since the summer of 1996. That action led to huge backlogs of mail around the country.
Details of Mr Crozier’s pay, which makes him the highest-paid civil servant in the country, will be revealed in Royal Mail’s accounts and financial results for the past financial year. Publication has been delayed and Royal Mail has not set a date for them to appear.
Some union sources believe that the organisation has delayed publication to avoid controversy over the pay awards, which will also go to other executives, while the ballot is running.
The result of the ballot is due on Thursday. Independent polling by the union last week predicted a vote of 65 per cent in favour of industrial action. If the union does win a “yes” vote, it could begin strike action the following week, although it could leave some time for last-ditch talks with Royal Mail.
Allan Leighton, the postal group’s chairman, is also expected to have received a bonus of more than £100,000. The bonuses are triggered by quality of service – how many letters arrive within their targeted times – and the financial performance of the group.
Mr Crozier is entitled to a bonus of 60 per cent of his salary, which last year was £615,000, if targets are met, and 100 per cent if they are exceeded substantially. There is little prospect of targets being exceeded because the group is expected to report sharply reduced profits. Royal Mail’s half-year figures, which were also delayed, showed an 86 per cent collapse in profits to £22 million. But its full-year figures will be boosted by the Christmas period.
The union reacted angrily to the prospect of bumper bonuses for Royal Mail executives. Dave Ward, its deputy general secretary, said: “The quality of service has been earned by postmen and women delivering the letters. While Adam Crozier reaps outrageous bonuses, Royal Mail has offered a pay rise that is half the level of inflation.”
A spokesman for Royal Mail said that it would not comment on accounts that had not been published. He confirmed, however, that the directors had not waived their entitlement to bonuses.
Royal Mail is also expected to reveal a substantial pay-off to the former head of its letters division who left after just over a year with the business.
Ian Griffiths, who earned £500,000, left at the end of March.
If a national strike does go ahead, postal services will be crippled because rival operators to Royal Mail do not have their own delivery workers.
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I am a customer or Royal Mail and agree that Postmen and Women should strike, they work hard in their sector and deserve better rates of pay. And Postmen and women should get bonuses as well.
john, london, uk
i have worked 4 royal mail 4 6 years. we need 2 strike 2 show mr crozier and his fat cat mates that enough is enough what do they need all that bonus 4. WHY not give some of that money 2 your frontline troops the delivery postmen and women who deliver the mail day in day out SUPPORT THE STRIKE.
N FOX, DERBY, DERBYSHIRE
I have worked for Royal Mail for over 20 years what a joke crozier and leighton are,Had to laugh the other week after being shown a video in a work time learning session with Alan Leighton trying to do some straight talking to all employees and what an absalute joke that was, if anything i think what he had to say changed peoples mind to vote for a strike, he must think the work force is thick to believe is no Bull@@@@ approach his words not mine. we all reconise that we need to change but what they want is just going to cripple a succesful business, they say they need to invest in the pension and whos fault is that ? Yes you got it Royal Mail managment all the years we were making profit they decide to have a pension paynent holiday eeeeeeeehhhhhh 17 years nice one. Back your union at least this vote proved that we wont be taken for mugs and believe all their propaganda by senior managment.
Chris Pope, Portsmouth, Uk
I can see why the FA got rid of Crozier, he takes the term FA to heart and gets paid obscene amounts of money for FA.
I worked for Royal Mail(Consignia-Hah another waste of money) for nearly 17 years and have never seen moral quite so low. I can imagine Royal Mail will soon start charging for uniforms and hiring out the bicycles to carry out delivery on.
The carrot and stick system that they seem to operate when it comes to bonus and wage agreements seems to be an awful lot of stick and a very small mouldy carrot.
Although I no longer work for Royal Mail (my night sorting job was cut to save money) I fully support strike action and hope that the over-worked posties get what they want and the bosses get what they deserve,which in my opinion is sweet FA (no pun intended)
N.Grant, Bournemouth, UK
A strike would be a disaster YES
But we have no other way of registering our disgust at a Bumbling / Innefective / Devoid of ideas senior management group.
We have had promise after promise made by them broken within days.
The Government (The major share holder in Royal Mail) are are to blame as well for sitting by and watching these idiots destroy this business.
The self same government that wants to shut our post offices. 2500 for now the rest at a later date.
In the propaganda delivered by Royal Mail in an attempt to divert strike action we were informed that 500 top managers were taking a pay freeze.
Funny that when you see what the 2 top dogs are about to take.
Seems the other 498 were conned.MMMMMMMM!!!!!
D Cameron, Newport,
It is not about money according to Mr Leighton but how can they offer us Posties 2.5% and then say that the number of un-addressed items (D.T.D.) could initially rise to five but there wil be no extra payment.We are then offered a percentage of the LATEST savings for the year in our office , well according to Royal Mail Management figures we are already £3000 over budget because their is too much sick leave.If Royal Mail get their way less of us will be delivering another 20% on a DAILY basis ,uh not much chance of the sick leave dropping there then.Crozier is the highest paid Cival Servant in the country and only 25% of the countrys workforce earn less than a Postman .This stinks just like the N.H.S. the workers are paid a pittence whilst the people at the top cream and cream.
Bryan, Southampton, Hants
i have to laugh at some of these people who think they will get a better deal if royal mail goes bust. news flash people they dont want you you dont make them enough money. their only intrested in bulk mail and thats not joe public
bruce matthew, dundee, scotland
im a postman and i say lets strike!!!!!
mark, glasgow,
I have worked at Royal Mail for over 14 years. As a postman, driver and IT. I have seen many false promises and supposed changes to mail centers to help with IPS. Cutting back nightstaff in my own office from 19 to just 6 now and talks to cut back another 3. Yet the overtime paid to IPS is not saving anything.
Moral is at a low, has been like this for last 6 years.. I was there in 1996, it was dismal, no one wants to strike, but when we are backed in a corner so many times with increased mail, targets that are impossible to meet.
Generally, even though my own office has broke and achieve there targets more often than not, still the pressure is increasing, cuts, reduced hours, managers quitting and becoming postmen again.
We in front line always face the music, customers complaining so on. This strike will bring RoyalMail back to the table. We should get those outrageous payouts, not CEO who have never even experienced what we do each day. Roll on Bundespost ..Hurrayyyyy
David Guest, Manchester,
I left the Royal Mail nearly 3 years ago after 20 years loyal service as a delivery manager. To think one person will be paid such high bonus's when the true measure of a company is the workforces feelings. At my point of leaving morale with the Royal Mail was at an all time low, staff at all levels expected to achieve work targets that were simply unachievable. Managers spending more time on delivery rather than doing the job they were paid for, postpersons not having enough time to finish a delivery, mail NOT being delivered to the agreed service level.
I admired Allan Leightons work ethic but that soon changed when he allowed such high bonus's to be paid to people who really don't achieve the targets. Put the money back where it belongs, back into the working conditions of the frontline staff, not ripping it out to pay out scandalous bonus's.
I fully support the strike action and I don't think it will be long before Royal Mail loses millions more business
Andrew Carlton, York, England
I have no problem with a CEO being rewarded with substantial bonuses if he succeeds in turning an ailing business around. But when Adam Crozier took over the Post Office he read his remit simply as a financial task to reduce the Post Office's costs. This, apparently, gave him free rein to close thousands of small post offices and reduce the quality of the service in terms of customer expectations to a sham. That doesn't justify huge bonuses.
An intelligent 11 year old could have done that. What was wanted from Mr Crozier was innovation and leadership, not slash-and-burn tactics. If I were a post office worker I'd be champing at the bit to go on strike in order to register my displeasure. The trouble is that to do so will further damage the Post Office and engender even more draconian cuts. I look forward to the Bundespost taking over this whole sad and sorry lot and doing what should have been done years ago.
David Garfield, London, UK
As a postman of some 10 years, I feel the bonuses awarded to Mr Crozier and his associates have been released to help ensure we go out on strike!
The hidden agenda appears to be " let them strike" then in a few months time we can make big job cuts and savings within the business and blame it on the staff and union for striking. Easy!
Perhaps rather than putting their hands up and accepting that we will lose business to our competitours we should concentrate on our quality of service and make ourselves more appealing to our customers, its common sense!
I hope to still be working for Royal Mail in 20 years time but I suspect Mr Crozier wont. Who do you think has the best interests of the business in mind?
Dominic Wirdnam, Clevedon, North Somerset
The public are always against strikes in the uk.
Royal Mail broke an agreement when the introduved change but they have turned there back on the union.An attempt to oust the union from the work place.the union is supporting HARD WORKING POSTIES IN THIS COUNTRY.
Before anyone critises unions they should try and get both sides of the story.Every practically jumps on the wagon of brainwashing govermental propaganda that is being pumped into the controlled uk press ..ie newspapers.
Take time to think , do you really think posties want to strike,we don't we want a good public service and respectful working conditions.everyone thinks that posties pick up bags ot the office and deliver them its not like that.i used to think the same before i joined the post.it hard work believe me..please support the posties who have always worked hard for the public,we care about the public but royal mail does'nt
.
bob, st.albans, uk
If the competitors are so good Mr Z, go and use them. Go see if you can send a letter from London to Glasgow for 34p. I do not think you will find anybody able to do that. All of them rely on DSA, where Royal Mail has to actually deliver the item at a loss. The fact is people, if Royal Mail goes down the pan, you will all lose out. Yes DHL might deliver, or TNT but at what cost? A fiver to get your Grannie's Birthday card delivered sometime next week. All those who have complained, are you trying to live on £17,000 a year because most Posties are. Thanks to the non-posties who have offered support though. Yes, the bonus is an insult and believe me, most posties are more concerned about the service we provide to the Public than the actual wage increase. I want your children to get their Birthday cards before the go to school. I want people to receive items they need before they go to work. We are actually on the Publics side. Please visit Hellmail.com, or Postmanchat.com. Find out there
Dave, Leicester, Leicestershire
Well that will enable us to meet the targets for recycling - no junk mail - no problem!
The sooner this lot go bust the better. Then they can be disbanded and an organisation that cares about its customers can take over.
Steve, London, UK
The new pay deal Royal Mail offered the posties was a disgrace. The loss of earnings yearly was north of £2,000, with the loss of early shift allowance,door to door payments,no payment for delivery of election material,covering colleagues off sick and working extra to cover annual leave in the summer.
Also, Adam Crozier said that all posties are 25% overpaid and 40% underworked....has he ever delivered a town walk with overweight pouch bags in the rain with no toilet breaks!!!
Now they blame the regulator for opening up the market for competition, they have known for a number of years that competition was coming and did nothing about it.
Also they blame the pension deficit for denting there profits....Its Royal Mail's fault for taking a 18 year holiday in pension contributions, the posties still paid weekly towards their pensions.
D Pritchard, Caernarfon, Wales
Again this man has shown himself to be an arrogant selfish taker who awarded himself a 3 million bonus in his first year in office. He is the definition of thick skinned and is ensuring his financial security when the inevitable happens and he is finally shown the exit door. The postal service is in melt down, thanks to his incompetence and personal greed.
C Donnelly, Beverley, UK
This seems like grotesque overpayment given the trouble the Post Office is in. Private sector executive pay levels along with public sector monopoly & captive workforce - the chief execs have got it made. And Mr Griffiths - a million quid for one embarrassingly unsuccessful year? Words fail me.
And yes - it clearly adds insult to injury in terms of the below-inflation pay offer to the posties.
Hard thing to say to say about a strike which will affect me, but good on them it f they do go ahead.
Alistair Stuart, London UK,
Turkeys vote for Christmas? Royal Mail employees need to understand that they are competing with many better organisations for market share and they do not have a God-given right to a wage for inefficient service.
The same might be said for their Chief Exec, but at least he understands the need for change.
Z Smith, London, UK
Capitalism rewards the few at the expense of the many, wasn't it ever thus? Now it seems that Royal Mail want to repace a fair day's work for a fair day's pay for postal staff with a new scheme, 'work extra time for nothing' while the select few laugh all the way to the bank.
Brian, Liverpool,
If Mr Crozier is already on over £600,000 a year what does he need more money for? What on earth does anybody do with that kind of income? To have a £375,000 bonus on top of this is obviously bad for the Royal Mail. Ordinary postmen being told that a £600 lump sum cannot be afforded will regard management with contempt and rightly so.
David Gwiliam, Leicester, England
Unbelievable!
There is abolutely no moral justification for these bonuses.
They expect their postworkers to accept a 2.5 pay rise with strings connected .Royal Mail deserve all they expect from industrial action and more
Even worse Allan Leighton only works about twice a month in his role for Royal Mail and has at least 9 other directorships including Leeds Utd where financially they are on the verge of collapse.Capitalism at its worse
I hope the Directors are embarrassed but I doubt it.Apparently Allan Leighon has branded any industrial action a 70's thing,these disgraceful and shameful bonuses are also a 70's thing.
john, shrewsbury, uk
Ronnie in Paris wants to kow....going the French way. If we were Crozier and his cohorts would by now be headless corpses.
mike gee, bournemouth, uk
All the long term loyal employees have made sacrifices in their terms and conditons to make RM more efficient and profitable. They have very reluctantly seen the standard of service and appreciation of their efforts change to the point where managers no longer give a damn about either, only profit matters. The current management and their immediate predecessors have completely and utterly destroyed a great public service. A demonstration of British management at its very worst. The sad thing is those employees are the people who will suffer the most and a vote to strike is a bit like the band playing on the deck of the Titanic............brave but ultimately useless.
mike gee, bournemouth, uk
I am right behind the union and postal staff if they strike, they are getting a raw deal when "fat-cats at the top" who are no bonus to the organisation are paid ridiculous sums of money for WHAT!!!!!
Bugsy, Burley-in-Wharfedale, England
Going the French way, eh ?
Ronnie, Paris, FRANCE
If the reports of substancial bonuses to the Directors of Royal Mail are confirmed then they deserve everything they have coming to them in terms of a national strike.
How the directors can justify paying themselves any type of bonus from a business that is going through major changes and losing market share is quite beyond me.
If the pain has to be suffered by the postal workers then the directors should take the lead and their share of the pain also and pass up on their bonuses and other perks.
What has happened to the old ethic "lead by example".
I fear like Tony Blair, they are in it for the short term, make as much as they can from their positions before they are found out and removed from office.
Leonard, Sunderland, England