GSP 25-21 An Post – Pay & Pension
16/December/2021
Description
I wish to update you regarding several issues at An Post and the potential impact on pay and pension for our members.
Pay
The pay element of our existing agreement with An Post expires on the 31st December 2021. In advance of detailed discussions with the company, CWU lodged a claim at the Joint Conciliation Council, seeking a significant pay increase for members from 1st January 2022. The claim for a cost-of-living increase is based on inflation of 5.3% with guidance by ICTU for baseline increases in the private sector that should be in the region of 2.5% and 4.5% for 2022.
The current agreement contained a lengthy pay pause, primarily to enable the company deal with the impact of COVID-19 on its finances in 2020. The company has absorbed the full cost from its own scarce resources, with no financial support forthcoming from Government. A similar position is likely to be the case for 2021, which has been made more challenging by the enforced delay in the company progressing price increases and its change programmes.
The Union cannot countenance staff again being expected to carry the can by way of further pay restraint, most particularly at a time where they have provided essential services, without failure, to the communities they serve. Therefore, a pay pause will not be accepted by the Union in any new agreement with the company.
It is ultimately the responsibility of Government to support the company and to ensure essential services, including community initiatives, are fully funded without seeking sponsorship from employees to plug the gap. CWU secured unequivocal support for this at the recent ICTU conference, and we will initiate a campaign in the new year for the development of a strategic and sustainable business model for the future of An Post.
Postal Operative Change Allowance
In Mails & Parcels a substantial earnings gap exists between Postal Operatives that have a Change Allowance and those that do not. Staff are required to perform the same level of work for 10% less pay, which is no longer tenable. Although the company had ambitious changes planned, they have not materialised. This means the pathway to dealing with this thorny issue, as advocated by my predecessor, is now potentially in another cul-de-sac.
To counter this situation the Union lodged a claim at the JCC seeking the consolidation of 5% of the Change Allowance into basic pay. While the Union recognises there is a significant cost to the company in conceding this claim, there is also a significant cost to Postal Operatives in their take home pay.
The Union remains supportive of the company change agenda on the basis it is inextricably linked to progression of the Union’s agenda, in which we require that the shared savings, when they materialise, are directed towards narrowing the gap.
CWU Managers Pay
Following acceptance last January of the WRC Pay proposal the Union had expectations that An Post senior management would move quickly to agree a common pay model and grading structure, for all managers below Level 3 at the company.
Having secured their much desired and long sought-after performance related pay model, the company seemed reluctant to extend it elsewhere. However, more positive engagement has recently taken place with some good progress to report. Any conclusion of this matter will have to address the current poor management of the performance related pay assessment and the unfair bonus model.
Pension
Discussions in relation to the review of the Pension Accord are ongoing. The accord is due to run to the 31st December 2023. The WRC Pay Agreement provided that a review should take place to consider the widening gap between base pay and pensionable pay. Extensive work, research with assistance from external actuary consultants Joe Byrne and Shane Wall, is underway. The scale of the challenge in trying to bring about pensionable increases, while ensuring there remains sufficient funds to be able to afford the benefits, should not be underestimated. Notwithstanding this, the widening gap between pensionable and non-pensionable pay, must be a component in any new pay agreement. Currently staff and pensioners require a pensionable increase.
An Post Zero Gender Pay Gap
The CWU very much welcomes the recent report of progress by An Post management in eliminating the difference between male and female average hourly rates of pay. The company must be credited with being the leading organisation in addressing this unfairness.
Conclusion
Obviously, the company finances and business requirements will be major factors for consideration in finalising any agreement with the company. The Union has demonstrated its responsibility and support for a successful company, which must be balanced with the requirements of staff. Ultimately agreement can only be concluded where members accept the outcome of discussions are fair. I will revert to you at the earliest opportunity regarding the above with members advised to watch this space and the company to mind the gaps.