Royal Mail dispute nears end as union recommends support for peace deal

Published

2 years ago

April 21, 2023

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The most bitter UK industrial dispute of the last year is on the verge of being settled as the union representing 112,000 frontline Royal Mail workers agrees to recommend the terms of a peace deal.

The company and Communication Workers Union (CWU) have been at each others’ throats for more than 11 months but agreed the outline of an agreement last weekend pending the approval of the union’s national executive.

The CWU said on Friday that it would recommend the membership support the plan in a forthcoming vote – with both sides claiming victories in certain areas.

The dispute covers three broad areas: pay, jobs and working conditions.

Loss-making Royal Mail had previously warned that without an agreement, staff would have been risking their jobs.

The agreement includes later starting times for deliveries which, Royal Mail said, would respond to greater demand for more next-day parcels, reduce its impact on the environment through the removal of 18 flights a day, improve quality of service and create greater capacity to grow.

New seasonal working patterns and regular Sunday working were also agreed. Royal Mail said that would allow it to grow its seven-day parcels business and adapt to changing customer demands.

On pay, the staff will get a 10% rise over three years – some of which has already been paid – and a one-off lump sum of £500.

The union had initially demanded an annual increase in line with the rate of inflation.

For its part, the CWU said it was delighted that, what it called the “Uberisation” of Royal Mail was to be abandoned.

It was particularly unhappy over the introduction of owner-drivers into the Royal Mail.

A union spokesperson said of the settlement: “This situation has been arrived at only because of the sheer determination of every postal worker in this country who stood up for themselves, their jobs and their industry.

“We intend to put this deal to our members’ vote as soon as possible.”

Royal Mail had argued that without reform being attached to the wider deal, it would have been unable to compete properly with rivals in the key parcels sphere.

It said: “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.”

The agreement will allow a single parcel network between Royal Mail and Parcelforce to be created, eradicating current duplication.

It will see both companies carrying the same format of parcels and visiting the same customers on the same day.

There is a commitment to no compulsory redundancies for the life of the agreement and a joint review in April 2025 to consider whether it can be extended.

Business

Post Office Horizon Scandal: Four suspects identified by police

Published

3 hours ago

November 18, 2024

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Post Office Horizon Scandal: Four suspects identified by police

Four suspects have so far been identified by police investigating possible criminal charges in the Post Office scandal, Sky News has learned.

Sources have said that among the offences being considered are perverting the course of justice and perjury.

Hundreds of sub-postmasters were wrongly prosecuted for stealing from their branches between 1999 and 2015 after faulty Horizon software caused accounting errors.

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The Metropolitan Police is a so-called core participant in the Post Office public inquiry and has been monitoring and assessing material submitted.

It is expected that the number of suspects being investigated by police could rise in the next six to 12 months.

More than a million documents are believed to be being sifted through and the number of police officers investigating the scandal has also risen from 80 to 100, with work across every single police force.

It is not expected, however, that any charges will be brought before 2027/28, and that time frame could be extended.

A Sky News source said the number of suspects was seemingly “just a starting point”.

A meeting took place this weekend between more than 150 sub-postmasters, including Sir Alan Bates, and the Metropolitan Police.

Sir Alan said he had been told by officers that “it was going to take a few years” and that there are “no restrictions on how high investigations will take them”.

He also said the priority for sub-postmasters was financial redress and then, after that, victims will be “looking for people to be held to account”.

A Metropolitan police spokesperson said: “Yesterday [17 November] we met with Alan Bates and some of the affected sub-postmasters to provide a brief on our progress and next steps.

“Our investigation team, comprising around 100 officers from forces across the UK, is now in place and we will be sharing further details in due course.

“Initially four suspects have been identified and we anticipate this number to grow as the investigation progresses.”

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Energy bills to rise again from January but spring falls to come, research firm Cornwall Insight forecasts

Published

10 hours ago

November 18, 2024

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Energy bills to rise again from January but spring falls to come, research firm Cornwall Insight forecasts

Energy bills are to rise again next year, according to a respected forecaster.

Costs from January to March are projected to rise another 1% to £1,736 a year for the average user, according to research firm Cornwall Insight.

The energy price cap, which sets a limit on how much companies can charge per unit of electricity, is also expected to rise, costing typical households an extra £19 a year.

It’s a further increase after energy costs rose 10% from October.

After the latest hike, there were hopes of a fall in the new year, but volatile wholesale gas and electricity markets are still above historic average costs.

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Prices have gone up due to supply concerns arising from Russia‘s war in Ukraine, and maintenance of Norwegian gas infrastructure.

But spring is expected to herald a reduction as is October 2025, Cornwall Insight said.

Every three months energy regulator Ofgem revises the cap based on wholesale costs.

The official January price cap announcement will be made on Friday.

It comes as millions of pensioners lost their automatic winter fuel allowance payment after the government means-tested the benefit.

Meanwhile, Cornwall Insight’s principal consultant Dr Craig Lowrey warned “millions” of households won’t heat their homes to “recommended temperatures, risking serious health consequences” with bills on the rise.

“With it being widely accepted that high prices are here to stay, we need to see action,” he said, suggesting options like cheaper rates for low-income homes, benefit restructuring, or other targeted support for the vulnerable “must be seriously considered”.

The energy price cap system is being reviewed by Ofgem with possible changes to the standing charge coming over the next year.

The long-lasting solution to high energy bills is the transition to UK-produced renewable power, the firm said.

“While there will be upfront costs, this shift is essential to building a sustainable and secure energy system for the future.”

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Grangemouth oil refinery owners reject US-led approach as closure looms

Published

11 hours ago

November 18, 2024

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Grangemouth oil refinery owners reject US-led approach as closure looms

The owners of Scotland’s only oil refinery have rejected a US-led approach about a possible bid for it months before its scheduled closure.

Sky News has learnt that a consortium said to be led by Robert McKee, an American energy industry veteran, wrote to Petroineos, the owner of the Grangemouth site, to express an interest in buying it.

The approach, which is understood to have been made earlier this month, was rejected by Petroineos, which is 50%-owned by the petrochemicals empire founded by the Manchester United FC shareholder Sir Jim Ratcliffe.

The consortium is understood to comprise The Canal Group, which is reportedly developing a green energy refinery in Texas, and Trading Stack, a Middle East-based commodities trader.

Mr McKee spent nearly four decades with ConocoPhillips, one of the biggest energy companies in the US.

Sources close to the situation said that Petroineos had rebuffed the offer in order to concentrate on a publicly announced plan to transform the century-old plant into a finished fuels import terminal.

They added that the nature of the consortium’s approach had raised questions about its access to financing and expertise in operating an asset of this kind.

The Grangemouth refinery, which employs about 450 people, loses about £200m annually.

Its other shareholder is the state-backed Chinese energy giant PetroChina.

The site is due to close next year.

A person close to the consortium insisted that its financing was robust and said it would assess the feasibility of building a new refinery elsewhere in the area.

They added that the consortium had had “positive interactions” with trade union officials, and believed that there was scope to rapidly make Grangemouth’s refinery operations profitable.

On Monday, a spokesman for Petroineos said: “Since the Petroineos joint venture was formed 13 years ago, our shareholders have invested nearly £1bn in the refinery, only to absorb losses of £600m.

“Last week, the refinery lost £385,000 on average each day and we expect to lose more than £150m in total during the course of this year.

“We have not received any credible or viable bids for the refinery.”

A spokesman for the consortium declined to comment.