1. Pay Overview CWU Special Forum Jeremy Baugh, Head of Research 9 January 2006

2. Overview: pay and conditions  Background  Highlight areas of progress  Pay settlements  Basic pay  London Weighting/RRIS  Other key issues  Working time  Working Time Directive  Family friendly policies  Conclusions

3. Background  Latest pay data for RM and Logistics shows:  Total staff numbers: 160,933  Part-time staff: 32,252 (20%)  27,000 in London (16%)  Total pay costs: £3,244m  150 separate paybill categories  Main pay components

4. Pay components

5. RM pay settlements 95-05

6. Basic pay  CWU has delivered substantial rise in basic pay  Since Oct ‘03 base pay has risen by almost a fifth (19%) from £261.93 to £311.50pw  Basic pay increases 2003-2005 have outstripped inflation (4.9%) and the going rate of settlements in outside industries (4.5%)  £311.50 still well below UK norm (£395.60)  OPG need 27% rise to reach UK norm  Share in Success v basic pay  £400 pa equates to 2.5% basic pay rise

7. LW & RRIS  Union policy – national pay but recognise costs of living and working in London/SE  2003 deal - £600 rise in Inner and Outer LW (worth 18% - 30% for OPG)  Guaranteed review mechanism focused on CoL – first by April 2006  RRIS – consolidation of RRIS monies Oct ’03  RRIS review 2005 – support principle but review areas/ regional pay

8. Working Time  Basic net weekly hours (36hrs 40m) close to UK average (36 hrs 30m)  Net hours overlooks crucial question of overtime (cost RM £181m in ‘05)  Long standing union policy for SWW (35hrs)  Impact of SWW on FT and PT staff  Annual leave – 30 days max is ahead of UK norm (28 days)  Greater flexibility to improve work-life balance

9. Working Time Directive  Clear challenge for RM and CWU  48-hour limit/EU review of opt-out  1998 Joint Statement:  Achieve compliance with WTD  Focus on earnings, overtime, annual leave and part- timers  Protect earnings, convert O/T into basic rates  Address WTD as part of broader policy agenda

10. Family-friendly provision  CWU policy calls for:  Improve maternity and paternity arrangements and end disparity across RM  Improve adoption leave for primary carers  Extend bereavement leave  Give adoptive parents the same maternity/paternity rights as natural parents  Greater flexibility to take time off

11. Conclusions  Current pay system is complicated and lacks transparency  CWU have delivered on basic pay and LW  Policy priorities  Catch and pass UK average pay  Cut working time and deal with WTD  Improve FF provisions  Preparations