Rights & Responsibilities and Employment Laws that affect Royal Mail.

Unit 16: Employer and Employee Relations

Michael Osodi

Task 1
Introduction

Royal Mail is the national post service of the United Kingdom. It is wholly owned by the Government and became a PLC in March 2001 under the Postal Services Act 2001. Royal Mail is responsible for the universal mail collection and delivery service within the UK. They collect items directly from their 113,000 post boxes, 14,300 Post Office® branches and from some 87,000 businesses. These items pass through our network of 70 mail centres, 8 regional distribution centres (for customer sorted mail) and 3,000 delivery offices. Then their fleet of over 30,000 red vehicles and 33,000 bicycles help them to deliver to their final destination. Deliveries are made at least once every day (except Sundays and Bank Holidays) at uniform charges for all destinations within the UK.

They use postcodes to identify where an item is going, helping us to sort mail efficiently and deliver it faster. They make deliveries six days a week by around lunchtime and although many customers receive their mail much earlier than this, they aim to complete rural deliveries by around 3pm. According to its annual reports of the previous year, Royal Mail delivers 84 million items every working day. Revenue for the year was £9.056 billion, and profits before tax were £312 million.

The Royal Mail traces its history back to 1516, when it was established by Henry VIII. The Royal Mail service was first made available to the public by Charles I on July 31 1635, with postage being paid by the recipient and the General Post Office (GPO) was officially established by Charles II in 1660.

In 1840, the Mail underwent substantial reforms and the uniform penny post was introduced. A single rate for delivery anywhere in the UK was paid by the sender. To certify that postage had been paid on a letter, the sender would affix the first adhesive stamp, called the Penny Black.

As the first country to issue stamps, British stamps are the only stamps that do not bear the name of the country of issue on them. They are unique in designing and producing the UK’s stamps and philatelic products to celebrate anniversaries and momentous occasions. They also offer electronic stamps to use as a novel and eye-catching promotional aid for businesses. They even enable people to personalise stamps with a favourite photo of their customer’s choice, to share with friends & family for invitations, birthday greetings and letters.The Royal Mail runs, alongside its stamped mail services, another sector of post called business mail.

The Royal Mail provides car insurance as well as life and multi-trip insurance. They also provide car tax and licenses services, pensions and benefits, banking services, Credit card services and Broadband and phone services.

Task 2

Rights & Responsibilities and Employment Laws

Every employer and its employees have rights as well as responsibilities in the workplace. Royal Mail has responsibilities to its employees. They are:

Providing a safe working environment – employees as well as the employer are encouraged to take responsibility for contributing to a safe environment and safe working conditions through:

Better leadership commitment to safety issues
Line managers to become role models and to set safety standards
Accountabilities, consequences and recognition of safety management
Support and safety skill training
Consistency in their approach to safety through regional support teams.

Providing a healthy working environment – employers providing good health support to employees is another responsibility. This could be done through:

A comprehensive occupational health screening service to all employees
A telephone contact centre, which is available 24 hours a day, every day of the year for health-related advice and for arranging health services for colleagues and their families
Health clinics in more than 90 Royal Mail Group sites across the country. Employees can get advice on their health to help them return to work successfully after illness or injury and to ensure they are not at risk of getting unwell at work
Fitness centres run by trained instructors that can be found on their larger sites (38 of them across the country) with a range of fitness and nutritional programmes provided
National physiotherapy and occupational therapy services for colleagues returning to work after illness or injury
Providing a confidential advice and counselling service to all employees.

Informing employees of their rights – employers must let employees know of their entitlements while working for Royal Mail. Information regarding this could be in the form of:

Sick pay – this could show how long they are entitled to be paid while taking time off work due to illness.

Holiday pay - this could show how long they are entitled to be paid while taking time off work for their annual holiday.

Annual Bonuses & Salaries - this could show how much they are entitled to be paid for the year e.g. 10% of what you earn over the year.

Health & Safety - this could show what procedures need to be in place or what training needs to be undertaken before employees can work for Royal Mail.

Those are some of the rights that employee should have. It is the responsibility of the employers at Royal Mail to provide full details about their employees’ rights through their desired forum e.g. leaflets, posters, welcome packs etc.

This is a preview of the whole essay

Preventing discrimination in the workforce – Employers should make sure that their Royal Mail employees are not discriminated against. This could be in terms of race, skin colour, sex or disability. Examples of this could be a female worker at Royal Mail being paid less than a male worker or a black worker failing to get a promotion because of their colour. Another example of this could be a full-time worker gaining favourable treatment over a part-time worker. This could be avoided through equal opportunities monitoring within Royal Mail.

Likewise, employees have responsibilities to Royal Mail. They are:

To comply with health and safety procedures and requirements – Employees are responsible for their own health & safety, as well as others in the workplace. Therefore, it is their responsibility to follow regulations set our while working at Royal Mail because if they are breached and there is an accident, there will be consequences for the employees as well as the employer, which will damage Royal Mail’s reputation in the future.

To work to contract and support the aims of the employer – Employees must be ready and willing to work for Royal Mail, as well as do whatever is asked of them, provided it is feasible. By doing this, they will be able to help their employer, Royal Mail, achieve their aims and objectives in the long run.

To treat their employer’s property with reasonable care – Employees must make sure that the equipment they use that is owned by Royal Mail should be used in the right manner and maintained properly. By doing this, it builds trust within the workforce.

Employers’ rights are similar to employees’ responsibilities, as they both have to follow rules and regulations, for example, they both have to make sure their working environment is safe and healthy to work in and they both have to work together to achieve the aims of Royal Mail

There are key features of employment law that relate to employer and employee relations. They are:

Equal Pay Act 1970 – this Act prohibits less favourable treatment between men and women in terms of pay and conditions of employment, provided they are on the same level, have the same qualifications to do the job and the work done is of equal value to that of the other employee. The employer will not be required to provide the same pay and benefits if it can be proved that the difference in pay or benefits is genuinely due to a reason other than gender. The Act does not apply to occupational pensions, but rights to equal treatment are contained in the Pensions Act 1995.

Sex Discrimination Act 1975 - this Act enforces that men and women should be treated equally. This law states that it is forbidden to discriminate against either sex in relation to recruitment, terms and conditions, access to training or promotion as well as their marital status, sexual orientation or change of gender. Both direct and indirect discrimination is forbidden. Direct discrimination could be when a less experienced man is hired ahead of a more qualified woman. Indirect discrimination could be when a job has certain requirements that one sex might not be able to comply with e.g. requiring applicants to be over 6 foot tall, which would rule out most women.

Health & Safety at Work Act 1974 – this law states that all employers must provide safe working conditions, with safety procedures put in place if an accident should happen. It imposes on employers the duty to ensure the welfare of their staff at work. The main provisions of this Act are that employers must provide all the safety equipment necessary for free, employers that have five or more employees, like the Royal Mail, must have a written safety policy on display and safety representatives appointed by unions has the right to investigate and inspect the workplace & the causes of any accidents. Everyone within the business has a responsibility to comply with this Act.

Race Relations Act 1976 – this Act enforces that it is unlawful for anyone to discriminate at the workplace against someone on the grounds of race, colour, nationality, ethnic origin or national origin. This Act also makes it unlawful to refuse employment, training or promotion on the previous grounds or to dismiss someone on the grounds of race. Therefore, it protects employees from victimisation or harassment of any kind. If this happens, an industrial tribunal can be introduced to make employers change the way they operate or can be used to seek compensation. Both direct and indirect discrimination are both illegal under this Act. Direct discrimination could be if a job is advertised as suitable for only white people, discriminating against black people in the process. Indirect discrimination could be if an advertisement required applicants to have blond hair, therefore, discriminating against certain ethnic groups, thus, ruling them out of the job.

Trade Union Reform and Employment Rights Act 1993 – this Act imposes further obligations on trade unions when they conduct ballots, which are required by statute. It also introduces new procedures which unions must follow before industrial action can lawfully be taken, including giving advance notice to relevant employers. The Act increases the rights of individual employees & trade union members and to improve competitiveness.

This Act contains many new and improved individual employment protection rights (many of which bring the UK in line with European Community directives). All pregnant employees have a new right to 14 weeks of maternity leave in addition to the existing right to return to work up to 29 weeks after child-birth. The law also strengthens the protection against dismissal or selection for redundancy on the grounds of pregnancy or childbirth. Additional protections cover sex discrimination in collective agreements.

Disability Discrimination Act 1995 – this Act means it is illegal for a disabled person to be treated unfairly because of their disability, unless there is a very good explanation as to why. The Act also requires employers to make reasonable adjustments to provide working conditions for employees with disabilities and an environment to help overcome practical difficulties. Examples of adjustments could be adding handrails, adding slopes, giving hearing loops etc., in order to make the worker feel at ease. All employers had to comply with this Act from October 2004.

Employment Act 2002 – this Act covers a number of areas within employment law, such as:

The right to 26 weeks’ paid maternity leave and 26 weeks’ unpaid leave
The right to 2 weeks’ paternity leave for fathers and 26 weeks’ leave for adoptive parents.
The right to request flexible working hours if they have children under six or disabled children under 18.
The right for members of trade unions to take paid time off to attend meetings and trainings.
Rights for people who are on fixed-term contracts.
Monitoring for equal opportunities through questionnaires.
Grievance and disciplinary procedures in the workplace to settle disputes more quickly. In Royal Mail, there is a standard 3-step dismissal a 3-step grievance procedure (both can be modified to 2 steps in certain limited cases). For dismissal or discipline, the 3 stages are:

1) A statement of grounds by the employer for action and an invitation given to employees for a meeting

2) The meeting takes place

3) A chance for an appeal is given

For grievance, the 3 stages are:

1) A statement of grievance in writing from the employee to the

employer

2) A meeting takes place

3) A chance for an appeal is given

According to the employment legislations, there are different types of Acts that can have a serious effect on the rights and responsibilities of employees and employers in the Royal Mail. The Acts are:

Equal Pay Act 1970 – this legislation has an effect on the rights and responsibilities of employees and employers in Royal Mail because the employee is entitled to equal pay and the employer is obliged to ensure it, provided the same amount of work is done. If equal pay is not being given, the employee could take action and make a claim to an employment tribunal. If you win, the tribunal can award arrears of pay for up to six years prior to the making of the claim and can change the terms of your contract to give you equality.

Sex Discrimination Act 1975 – this legislation has an effect on the rights and responsibilities of employees and employers in Royal Mail because the employee is entitled to equal opportunities and the employer is obliged to ensure it, no matter what the scenario is. Under this legislation, an employer’s insistence on a standard full time working week can potentially be viewed by an employment tribunal as indirect sex discrimination. It has been successfully argued that, because more women than men have caring responsibilities, they therefore have a greater need for flexible working patterns; a refusal to allow such arrangements is indirect sex discrimination. As a result of the law on indirect discrimination, employers now have to look very carefully at any request from a mother with childcare or other caring responsibilities who wish to change her working arrangements. They must show a clear business reason for refusing. If they cannot justify their refusal they may be found to have discriminated against the woman. Where women in a workplace are allowed to work flexibly then it would be sex discrimination for a man not to be allowed the same rights. Compensation for successful complaints of indirect sex discrimination can be high.

Health & Safety At Work Act 1974 – this legislation has an effect on the rights and responsibilities of employees and employers in Royal Mail because the employee is entitled to work in a safe environment and expect their employer to provide safe working conditions e.g. protective clothing, Royal Mail trolleys etc. If health & safety is violated at Royal Mail, it could result in serious injuries and legal action could be taken against them. This will lead to the business being put into jeopardy.

Race Relations Act 1976 – this legislation has an effect on the rights and responsibilities of employees and employers in Royal Mail because the employee is entitled to be treated fairly, regardless of their race or national origin and the employer has procedures they have to follow to ensure that the employees feel comfortable in the workplace. If employees are discriminated, they can go to an industrial tribunal so that their employers can change their attitudes towards them.

Trade Union Reform and Employment Rights Act 1993 – this legislation has an effect on the rights and responsibilities of employees and employers in Royal Mail because the employee is entitled to be represented by a trade union, entitled to take industrial action and are protected against dismissal. Also, the employer has a right to deduct any wages for employees whilst they are on strike. If employees are not given the right to join a trade union and take industrial action, they could take their employers to an industrial tribunal so that their employers can change their attitudes towards them.

Disability Discrimination Act 1995 – this legislation has an effect on the rights and responsibilities of employees and employers in Royal Mail because the employee is entitled to have facilities such as easy access to buildings through ramps, lifts and disabled toilets. Also, the employer has a duty to make reasonable adjustments in relation to a disabled person. You cannot discriminate due to disability, including job applications and the selection process. If employees are not provided with these facilities, it could result in serious injuries and legal action could be taken against their employer. This will lead to the business being called into question.

Employment Act 2002 – this legislation has an effect on the rights and responsibilities of employees and employers in Royal Mail because the employee is entitled to flexible working hours, paid holidays, maternity & paternity leave and grievance procedures. Also, the employer must have both a disciplinary procedure and a grievance procedure in place so that employees have a clear procedure for addressing any perceived abuses of flexible working arrangements; and a procedure whereby employees may appeal against what they believe to be an unfair response to a request. If employers do not have these in place, employees can take their employers to an industrial tribunal so that their employers can introduce these procedures.

Task 3

The industrial dispute with the postal workers and Royal Mail in 2007 started because of issues with pay and working conditions. Members of the Communication Workers Union (CWU) that work for Royal Mail were outraged over a 2.5% pay rise offer, as they wanted a 4.8% increase. They were also upset by plans to modernise the organisation, which they believe will lead to massive cuts in postal services and jobs. Royal Mail claims the union is looking for a 27 per cent increase, which it said it couldn’t afford. On the other hand, the union’s deputy general secretary, Dave Ward, strenuously denies demanding a 27 per cent increase and insists that Royal Mail is refusing to negotiate. As a result, a series of walkouts was be held by up to 130,000 CWU members unless a compromise was reached. This will definitely halt postal deliveries across the UK in the process. The strike started on 29th June 2007 and marked the first postal strike in 11 years. It included all CWU members in the Royal Mail and Post Office Limited, including people who work on counters and cash services. The strike was designed to have maximum impact on Royal Mail at minimum cost to workers.

Royal Mail chairman Alan Leighton was not willing to compromise on the offer made to the workers, as he knew that any improved offer would jeopardise the financial earnings of the business in the future. It was well documented that the Royal Mail had lost 40% of bulk business mail to rival postal operators. The management of Royal Mail had offered its workers, whose basic pay is £323 a week, a 2.5% pay rise plus up to £800 in performance related "dividends" as well as local productivity deals. However, this was quickly rebuffed, as it was seen as an insult on what they wanted. It was claimed by the Royal Mail management that the postal workers wanted a 27% pay increase, though this was denied. They also wanted to secure their jobs and the future of the business by modernising, due to competition from DHL and other postal services. Lastly, the management wanted to negotiate with the unions in order to end the strike and regain the already-damaged reputation of Royal Mail.

Similar to all other businesses, Royal Mail has a grievance procedure that involves a standard 3-step dismissal and 3-step grievance procedure (both can be modified to 2 steps in certain limited cases).

For dismissal or discipline, the 3 stages are:

A statement of grounds by the employer for action and an invitation given to employees for a meeting
The meeting takes place
A chance for an appeal is given

For grievance, the 3 stages are:

A statement of grievance in writing from the employee to the employer
A meeting takes place
A chance for an appeal is given

Also, like other businesses, Royal Mail has appraisals on a regular basis. Every member of staff is given regular performance reviews and appraisals where, in close conjunction with their line manager, they work towards the targets laid out in their own personal development plans. The workers also have appraisal topics which include IT, health & safety, communication and influencing skills, performance management, project and change management and leadership skills. Through a mixture of traditional courses, learning on the job, coaching, mentoring, and e-learning, Royal Mail make sure they have everything needed in order for staff to reach their full potential.

Employee relations were established through unions. Unions protect their employees. The Communication Workers Union (CWU) represented Royal Mail postal workers. The CWU helped to negotiate pay structures with the management of Royal Mail, as the workers did not want to accept no less than 4.8% rise due to inflation in April of that year. The CWU also negotiated pension plans for Royal Mail workers, which is called a Memorandum Of Understanding (MOU) with the Trustees, which, subject to the proposed Government funding being confirmed, will commit the company to fund the pension deficit over 17 years. They also guaranteed job security for Royal Mail’s postal workers, with no compulsory redundancies and no compulsory change from full to part time work.

The salary and wage systems within Royal Mail was one of the causes of the strike, as there have been disputes over pay for a while and it is not the first time. In 1996 and 2003, there was a similar strike regarding pay and working conditions. The 2003 strike was referred to as a wildcat strike.

The root causes of disagreement over employee relations in the dispute between Royal Mail and their postal workers were money and modernisation. The dispute between Royal Mail and postal workers centres on Royal Mail's latest pay offer and crucially, its plans to modernise the business, including a £1.2bn investment programme. Ever since the postal market was opened up to full competition at the beginning of 2006, the government-owned group claims to have lost 40% of the business mail market, which accounts for the 90% of Britain's mail, to private sector rivals. They argue that rivals, which have already invested in new equipment, are 40% more efficient as a result; and at the same time pay their workers 25% less than their Royal Mail counterparts. The union also claims that Royal Mail’s modernisation plans, which will include later start times, later deliveries and the abolition of Sunday collections, will lead to a loss of 40,000 jobs over the next five years, taking the service backwards. In 2003, postal workers decided to strike because of pay, specifically up-front money. Royal Mail claimed that it was going to offer a pay rise of 14.5 per cent pay rise over 18 months. However, a large amount of that money was linked to performance and reaching targets set such as faster deliveries and more efficient working as well as altered shifts. The deal also came with strigs attached, in the sense that the CWU had to agree the loss of another 10,000 jobs through voluntary redundacy in order for the deal to come into effect.

In order to survive in the world of business, you need to keep up with the modern world. They need to be efficient, as they will need to be reliable when delivering. They have lost many deals with big-name companies due to their unreliability, losing business in the process. Key customers, including the Department of Work and Pensions, BT and a number of high street banks, have disassociated themselves with the Royal Mail, including online retailer Amazon, who recently switched its £8m contract to another supplier. The Royal Mail will also need to be productive in order to avoid the threat of competition in the postal market, as Deutsche Post, the German logistics group and TPG, the quoted Dutch postal group, have made their intentions clear to be forces in the UK market. Royal Mail also have to offer better pay & working conditions to its workers to avoid future strikes or disagreements. They could do this by offering flexibility and improved pay structures that are above inflation. Royal Mail is losing business because they have failed to change and modernise. If they don't modernise, the future of the company and everyone within will look bleak. They could modernise by investing in new technology so they can keep in line with their competitors and will eliminate the threat of small businesses adopting e-commerce, which will mean less mail. They could also give their postal workers a chance of career progression, where there could be promotion steps in place so that postal workers do not stay stagnant and have the opportunity to move up within Royal Mail.