Letter to Branches

No. 228/09 / Ref: 120.12 / Date: 11th March 2009

To: Branches with Romec Cleaning Membership

Dear Colleague,

Cleaners Bonus

I am pleased to report that we have concluded discussions on a new bonus scheme for Romec cleaning grades.

The agreement will be subject to an individual member’s ballot within the following timetable.

Ballot papers despatched Friday 20th March 2009 (By 2c post)

Ballot closes Monday 6th April 2009 (Ballot papers returned by 1c post)

There can be no doubt that the current scheme is no longer fit for purpose and has little, if any, credibility amongst the vast majority of our members. Indeed, we have a number of conference policies which state exactly that and mandate us to achieve a new scheme.

The current bonus scheme pays out to approx 18% (and falling) of eligible employees and of this number there is only 6% achieving the maximum. The most recent audited figures report that less than 8% of Cleaners received any payment in the last bonus quarter.

Having scoped the proposed new scheme we are confident of achieving something in the order of an 82% payout which equates to over £500,000 in cash being paid to Cleaners.

A copy of the agreement ‘A New Deal for Romec Cleaning’ is attached and Branches will note that (in line with conference policy) all elements of the bonus are within the scope of what cleaners can influence.

The necessary safeguards in relation to attendance (authorised leave, accidents on duty, DDA, maternity related absences etc) are also enshrined within the agreement.

Branches will also note that whilst we have accepted industry standard productivity rates, they are pitched at the lower quartile level, and are dependant on Romec supplying the appropriate equipment and training. Also where Target Reference Hours cannot be introduced due to lack of vacancies or inability to be able to reduce hours for reasons contained in the document then target hours can be agreed that means that this element of the bonus can be achieved.

We have also secured an element of pay protection until the end of 2009 for the small minority of members who may have benefited under the current scheme, and this will also be reviewed during the course of the year. It should also be noted that the scheme itself remains under review with a formal review meeting taking place at the end of each quarter to monitor the scheme and make sure it is achieving its objectives and our members are in receipt of reward.

The Postal Executive has unanimously endorsed the agreement and is recommending our members to vote yes and ratify the agreement.

This LTB is being circulated in order to provide Branches with an advance copy of the agreement and to also enable Branches to begin making arrangements to meet and communicate with our cleaning membership. Branches will also be supplied with an advance copy of the letter to members which will accompany the ballot papers, prior to the ballot commencing.

Any enquiries toBob Gibson’s Office, quoting reference 120.12

Email address:

Yours sincerely

Bob Gibson

Assistant Secretary


A NEW DEAL FOR ROMEC CLEANING

  1. It is jointly recognised that over the course of a number of years Romec and CWU have jointly made progress in raising both the quality and cost effectiveness of cleaning. As a consequence it has been possible to record the first national contract bonuses for quality performance in cleaning since the start of the Romec joint venture. However, it is also recognised that approaches taken in the past will not make the step change in cleaning financial performance that is now urgently required to sustain progress.
  1. This agreement sets out measures that will enable this step change, whilst at the same time providing investment in the cleaning operation and assurances for employees. It will also offer the realistic prospect of financial benefits for cleaners linked to business improvement.
  1. It is recognised that in many sites Romec managers have taken the opportunity to reduce the level of financial loss by not replacing people who leave or by replacing leavers with reduced hours. It is also recognised that in very many work locations the benefits of this approach have not been shared with cleaners but have been introduced executively. However, both parties acknowledge that this approach is inappropriate and needs to be replaced with a more open approach that does provide reward for improvement.
  1. In light of this, it is agreed that a new bonus arrangement will be introduced in conjunction with this agreement for all Romec cleaners with effect from 1 April 2009. The details of the new bonus arrangement are attached at appendix 2 of this agreement. There are a number of bonus worthy targets within that scheme which now hold out the realistic prospect of every cleaner achieving a level of bonus. The new scheme replaces all existing bonus arrangements for CWU represented Cleaning grades.

Romec Investment in Cleaning

  1. Romec has invested heavily in cleaning equipment and will ensure that it is best utilised via training and support. It has also invested in increasing the number of immediate managers in the cleaning product to provide the support that front line cleaners require to carry out their jobs proficiently. In addition Romec is committed to investing in front line training and induction. Furthermore it is jointly recognised that the levels of performance identified below can only be achieved through the provision of the appropriate support, tools/equipment and training. In terms of equipment, these normally consist of vacuums, floor and carpet single disk buffers, scrubber/dryers and sweepers.

A Fresh Approach to Revisions

  1. Every site shall have a ‘target reference’ number of hours allocated to it in line with industry efficiency standards appropriate to repeated cleaning on an output specification basis. The type and size of each cleaning site is attached to appendix 1 of this agreement. Industry standards assume that if we were to take on the site as an additional building we would be able to clean to the required standard, including minor reactive events, within the target reference hours. Disproportionate ‘accidental’ cleaning work e.g. flooding or the need for ‘deep cleans’, are normally dealt with in outside industry by additional resource on a strictly as required rather than scheduled basis. In some units performance is already well above the efficiency standards and nothing in this agreement serves to reduce this higher performance.
  1. The target reference hours are objectively determined using simple calculations based on square metres cleaned per hour utilising appropriate equipment. Target reference hours supersede any previously negotiated hourage for a site or building. Taking into account the type of building the square metre cleaned per hour should be at least:
  • Mail Centres (multi-floor ex MLO’s)– 250 m2/hr [square metres per hour]
  • Mail Centres (APC’s) – 300 m2/hr
  • Road Transport Workshops (RTW’s) – 300 m2/hr
  • Delivery Offices (multi floor, lifts, wooden floors) – 250 m2/hr
  • Delivery Offices (single storey) – 300 m2/hr
  • Branch Offices (attached to delivery office) – 300 m2/hr
  • Branch Offices (modern build and materials) – 300 m2/hr
  • Branch Offices (pre 1986 builds) – 250 m2/hr
  • Hubs/RDC’s – 300 m2/hr
  • Admin (in stand alone and APC/RDC/Hub units) – 300 m2/hr
  • Other admin units – 250 m2/hr
  • Cashco CIT’s – 250 m2/hr

Internal floor area determines the number of Square metres at a site. The target hours reflect lower quartile industry efficiency standards only. The nature of the task in tidying car parks/yards means that these do not impact significantly on efficiency rates or hours required.

As cleaning techniques change in outside industry (e.g. widespread adoption of micro-fibre cleaning techniques, use of robotic overnight cleaning machinery) these standards will be reviewed by the CWU and Romec.

  1. The objective will always be to contain costs within the target reference hours and managers, following appropriate consultation with the CWU and employees and within the context of existing national agreements, will always act in order to do so as the opportunity arises.
  1. It is recognised, however, that in some specific locations (e.g. Delivery Offices many miles away from other cleaned sites) that it will not be possible to service the site using a mobile cleaner or to recruit someone willing to work to the target reference hours. It is also the case that on some sites existing cleaners are paid for more than target reference hours and are unable, for practical reasons, broadly in line with the terms of Appendix 4 of the Managing Surplus Agreement, to absorb work from other sites to make up their workload to their paid for hours – as would be the normal course of action. In these specific circumstances the relevant General Manager (GM) and Regional Representative will agree a level of bonus target hours that will be above the objectively justified target reference. As circumstances change e.g. retirement or resignation of a cleaner, building closure or new office builds and relocations, the GM and regional rep will review the bonus target hours figure to identify how to adjust it to align with the target reference figure.
  1. Romec and the CWU will now commence a programme of revisions, with the primary objective of reaching agreement on new duty patterns that will bring about the required improvements in performance and quality. These revisions will provide the opportunity to introduce improved/imaginative duty patters/attendances. It is recognised there is more scope for different options in larger units but also more need to align attendances to customer needs throughout the day and night. Normal arrangements for any allocation of revised duties will apply.
  1. The provisions of Romec’s Managing Surplus Agreement - MSA - will apply where employee surpluses / surplus of hours may arise with the clear understanding that redeployment into other suitable cleaning opportunities will be the preferred route to clear down any surplus. Any unresolved issues will be addressed using the provisions of the Romec Industrial Relations framework.
  1. Any disagreement concerning the terms of this agreement or their application shall be progressed in line with the terms of the Romec Industrial Relations Framework.

Periodic Reviews

Both parties acknowledge that deployment of this agreement may uncover or emphasise issues not envisaged at present. Accordingly, the agreement will remain under review for the remainder of 2009 and will be formally reviewed at the end of each quarter to ensure the aims of the scheme are being met and to establish what, if any, amendments may be necessary.

Signed

CWU………………………….. Romec……………………….

Date…………………………… Date…………………………

Appendix1

Appendix 2

Cleaning Services Bonus Scheme

Principles

From 1 April 2009 the bonus scheme for RoMec cleaners will be changed in line with the following principles:

  • To provide the realistic opportunity for every cleaner to earn maximum bonus under the scheme
  • For that opportunity to be generated by achievement of the key drivers of business success
  • For the key drivers to be within the control – as far as possible – of cleaners.

Make up of potential quarterly bonus – cleaners

Element of scheme

/ Potential bonus per quarter
The CSI score for questions 1-10 in the relevant building must be at least 80% / £25
Last in quarter internal audit must have scored no more than 2 points / £30
Hours used on site must match or be less than [a] target reference or [b] agreed bonus target hours. / £35
Regular Attendance requirement met / £30
Total quarterly bonus potential / £120

Make up of potential quarterly bonus – mobiles

Element of scheme

/ Potential bonus per quarter
Across the SPC as a whole, hours used must match or be less than the total SPC [a] target reference or [b] agreed bonus target hours. / £40
Regular attendance requirement met / £40
The average CSI score for questions 1 –10 in the SPC buildings must be at least 80% / £40
Total quarterly bonus potential / £120

Notes on the scheme

  1. For 2009 only, the ‘old scheme’ calculations will be run in parallel to the ‘new scheme’ calculations for those SPC’s where bonus under the ‘old scheme’ was generated in the previous quarter [1 January – 31 March 2009]. Where the total aggregated bonuses for all cleaners within an SPC would have been higher under the ‘old scheme’ then this shall be paid. Where the total aggregated bonus for all cleaners would be higher under the ‘new scheme’ then this will be paid. During the course of 2009 the national parties will review the operation of the scheme and consider options to support earnings where there has been a loss in opportunities to earn higher bonuses under the ‘old’ scheme.
  1. Where RoMec cannot produce evidence about achievement of an element of the scheme for a quarter the achievement of that element is assumed for bonus calculation purposes for that quarter.
  1. Regular attendance under this scheme is defined as attendance for every scheduled shift with the following exemptions:
  • Absence directly related to a pregnancy related condition or a previously notified condition covered by the DDA
  • Agreed annual or special leave.
  • Accidents on duty where the injured person has reported this within 24 hours. As a minimum individuals must have been wearing issued PPE and adhered to all risk assessments, safe systems of work COSHH instructions at the time of the accident.
  1. Where an individual is absent for up to 1 day in a quarter the regular attendance element of bonus will be abated by £10 for that quarter. Any additional absence in that quarter will mean that entitlement to this element of the bonus is lost in full. Following the operation of 2 quarters of the scheme, if the incidents of absence – measured as a % of cleaners attending for work – worsen then the regular attendance element of the scheme will revert to full abatement for that element of the bonus subject to those exemptions in paragraph 3 above.
  1. New employees must have been in post for a full quarter to qualify for bonus payments.
  1. Employees must be in post at the date of bonus payment unless they have retired due to age or ill health during the bonus calculation period – in which case they will receive payments calculated on their length of service during that period as a % of the quarterly period.
  1. Part time employee’s bonuses are calculated on a ‘pro rata’ basis.
  1. Employees absent from work for the full 3 monthly period will receive no bonus payment as of right but where their absence is covered by the exceptions set out in note 3 above a repeat of the bonus earned in the immediately preceding quarter may be made.