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Agreement between CWU & Parcelforce Worldwide - Peak Depot Driver Weekday Incentive Scheme 2021

No: 500/21

19th November 2021

For the Immediate Attention of All:

Postal Branches with Parcelforce Members

Parcelforce Regional Organisers

Parcelforce Depot Representatives

Dear Colleagues

Agreement between CWU & Parcelforce Worldwide – Peak Depot Driver Weekday Incentive Scheme 2021

The 2021 Parcelforce Peak and Christmas Remuneration Agreement, circulated to Branches in LTB 471/21 on the 8th November 2021, contained a further joint commitment to review potential additional weekday incentives in light of the anticipated challenges with regard to agency resource and hire vehicle availability.

Given the anticipated and unprecedented problems, the business had indicated that they would be willing to repurpose funds budgeted for seasonal agency resource to try to maximise delivered volume within the internal fleet.

Extensive discussions have taken place in a Joint Working Group environment to look at options. In a business where traditionally C&D Drivers work a significant amount of additional hours, experience has shown that offering additional weekday overtime is not especially attractive. As such, the group has focused on creating a bonus payment system for delivering additional volume over and above the plan. Discussions have concluded with an agreed Joint Statement which has been endorsed by the Postal Executive.

A system has been jointly devised with assistance from our respective Industrial Engineers to place a value on additional deliveries performed based on the individual characteristics of the route, i.e. the value of an additional drop on a rural route will be greater than on an urban route due to drop density, the increased interdrop mileage and time. Routes will continue to be planned on the standard planning values and drivers will be expected to comply with the 1-hour ETA windows.

Based on a joint analysis of each route, a value of payment has been established. These payments will become available when the delivered volume meets the established gateway level. The gateway volumes have been devised through analysis of the Dynamic Live Report (DLR) data to establish productivity levels for every individual route across the depot network. They have been calculated to produce an average number of drops for the November and December peak weeks based on historic actual volumes to take into account the usual peak increase in delivered parcels and improved drop density rates.

The calculated gateway total of delivered stop figures will be shared with the CWU Unit Representative and Regional Organiser before the scheme is launched. Any disputed gateway figure(s) will be referred to the JWG to make a judgement.

Delivery of items above gateway will attract a route specific payment calculated based on its own Depot and route stop costs whilst allowing for the urban, suburban and rural nature of each route. This sets a level playing field for earnings potential regardless of route type.

The Scheme is open to all routes, bulk and reserve drivers covering a fixed route or postcode sectors.

The intention of the incentive scheme is to replace the need for ad-hoc overtime with the daily incentive payments where a driver delivers the set additional productivity levels agreed however where reserve drivers are unable to enter the scheme, ad-hoc overtime will still be available. Based on the joint analysis undertaken, it is considered that should our members choose to participate payments could produce earnings well above the Overtime rate.

Participation is entirely voluntary and drivers can choose to perform their normal workload without taking any additional items. PFW drivers will have the opportunity to commit in advance to participating in the incentive scheme during the peak period. Advance commitment is essential to support the Depots in planning their resource requirements on a weekly basis.

Drivers who do not participate at the start of peak can enter the scheme on any week during the peak period so long as they give the same advance commitment to continuing in it for the remainder of the period.

It is key however that the ETA performance does not suffer as a result of the scheme and a process has been included to ensure that where this happens a joint review takes place before any driver is excluded from the scheme. This includes an escalation process up to and including a National intervention.

The agreement also includes opportunity for Depot employees in other functions to participate, assuming that there is a requirement and that the business has vehicles available. Where they perform deliveries in addition to their normal duties, exceptionally they will attract payment at SA rate.

It is of course worth saying that this approach is entirely untested however in the view of the department it is an innovative approach to attempt to mitigate the resourcing challenges while offering significant additional earnings for our members.

The department requests that Branches bring the contents of this LTB to the attention of Parcelforce Depot members.

Any enquiries in relation to this LTB should be addressed to Davie Robertson, Assistant Secretary, email: quoting reference: 106A.12.

Yours sincerely

Davie Robertson

Assistant Secretary

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