CHECK AGAINST DELIVERY
- I am delighted to have been invited to your Annual Delegate Meeting. As representatives of junior and middle manager grades in the Royal Mail you are at the heart of the future of the Post Office: as trade unionists; as employees; and as managers.
- This is an ideal opportunity for me to talk to you about the Government's commitment to the Post Office, our vision for its future; and to tell you something about the review which is now in progress.
It is also an opportunity for me to outline the Government's strategy for employment relations; and in doing so to reflect on some of our early achievements in creating a fairer balance in the world of work.
IMPORTANCE/HISTORIC ROLE OF POST OFFICE
- First the Post Office. It has been around for a long time and is one of this country's major success stories. It is part of our history and culture.
- The first Master of Posts was charged with handling the mail of King Henry VIII.
- I know that today's customers are at least as demanding as Henry, perhaps more so. But I do trust and hope that you no longer have to fear the dungeon or the axe.
- The modern Post Office is part of the fabric of society, providing a service which treats us all equally like kings.
- It is particularly important to those who live in remote areas.
- Our Post Office is among the best in the world. I am determined that we should help it to prosper to the benefit of all its customers, its staff and the British economy.
CHALLENGES FACING THE POST OFFICE
- Like any other business, public or private, the Post Office needs to evolve to survive. It is doing well now but we need to work together to ensure it survives and grows into an organisation capable of providing the country's postal needs into and beyond the millennium.
- Volumes of business are growing.But over the horizon there are the signs of change - of threats and opportunities.
- Customers are growing increasingly sophisticated.
- Business customers, who generate the bulk of mailings, are demanding ever improved levels of service at lower real cost.
- new technology - the fax and electronic mail - is increasingly offering an alternative to physical mail.
- There is increasing competition as communications markets become global and as markets are liberalised.
- And liberalisation is a driver and a response to change.
- The European Union Directive requires no major changes in the UK - the UK market is already one of the most liberal in Europe. But towards the end of this year the European Commission will be bringing forward proposals for the next stage of postal liberalisation and we can only assume it will be towards greater opening up of markets.
- And the World Trade Organisation is showing a greater interest in the mail industry.
HOW TO MEET THE CHALLENGE
- My purpose today is not as you might now be thinking to depress you. The challenges coming around the corner for the Post Office cannot be underestimated. But I believe you, your managers and your staff are more than equal to the challenge.
- I have a vision of a public sector Post Office competing with the best in the world in all areas of the emerging post-related communications market. A post office which not only retains its existing customers but which also gains new business to underpin its economic and social obligations.
- You will need to make it happen. The Government's role is to set the right framework.
- The Government is committed to giving the Post Office greater commercial freedom to meet these challenges.
- Our own challenge is: how best to give a publicly owned company genuine commercial freedom; to ensure fair competition; and how to reconcile the social and commercial aims of the Post Office.
POST OFFICE REVIEW
- Following consultations last year with the main interested parties, including the CMA and other post office unions, we announced the second phase of the Post Office review on the 6 April.
- Our objective is to establish a framework for the Post Office that will enable it to meet successfully the challenges and opportunities ahead. It is important that we have an effective postal service which meets the commercial and social needs of the country .
- You will have seen all kinds of nonsense in the press about some hidden agenda to sell off the Post Office. It is just that - nonsense.
- The Government is committed to the Post Office remaining in the public sector and continuing to provide a universal postal service at a uniform tariff and a nation-wide network of post offices.
- Against this clear background, the review will make recommendations on the future organisation, structure and financing of the Post Office which will best deliver:
- greater commercial freedom to enable it to compete effectively in the UK and overseas;
and
- improved efficiency, effectiveness and service standards.
We have an open mind about a wide range of public sector options. It is no secret that the review will consider the option of a minority share sale. This should not be a cause for concern. It is only one of many options. It is not privatisation - thin end or otherwise.
- Other options include joint ventures, increased scope to raise external finance, direct investment in private sector companies by the Post Office, the creation of a public sector trust and an independent publicly owned company.
- People are central to the future of the Post Office -managers, employees, suppliers and customers.
- A business cannot meet the needs of its customers unless everyone in the business shares the same vision - is fully involved, appreciated and committed.
- The Review will consider whether the existing structures militate against a greater sense of partnership between management and the workforce.
- Industrial relations are clearly primarily a matter for management and the unions in the Post Office. However, if we can help to facilitate an improvement in the climate we will do so.
- The Review will consider ways to improve employee motivation,including ways of ensuring a greater sense of ownership and involvement of the Post Office by its employees.
- We are committed to a full, open and frank review- involving unions, management, suppliers and customers
- We consulted widely during the first phase of the review and will be taking those views and any additional information into account in the second phase.
- It is worth reminding ourselves that no one knows the postal business better than those who work in it. We will welcome information and ideas from the postal unions. The Communication Managers Association are working closely with the Communications Workers Union to submit ideas to the review team.
- I am conscious of the need to move ahead after years of delay and to minimise further uncertainty for the Post Office.
- Now that we have at last left the sterile debate about ownership behind us I believe we can move forward with confidence to reach conclusions on these vitally important issues.
- To help it meet the challenges that are already evident, we have already extended to the domestic market the current freedom that the Post Office already has to enter into international joint ventures.
- We intend to announce our further proposals in the Autumn.
AGENDA FOR LEADERSHIP
- I know you have over recent months undergone major structural change with the implementation of the Agenda for Leadership programme.
- This has no doubt led to uncertainties. I can sympathise - change, or at least the prospect of change is rarely comfortable.
- The details are, of course, for you. But in spirit I would urge you to take a positive approach to the issue and to embrace change in the interest of all concerned in the future of the Post Office.
WIDER INDUSTRIAL RELATIONS ISSUES
- The Post Office is not unique in needing a stable and co-operative climate of industrial relations in which everyone works for the success of the enterprise.
- Partnership and fairness at work are fundamental principles to which we a re committed in practice throughout the economy.
- I want now to look back over the last year at some of the crucial steps the Government has taken in that time to restore a fairer balance to the world of work. We have made great strides on both domestic and European fronts.
- First we restored union rights at GCHQ.
- Supporting the Private Member's Bill on whistleblowing.
- The Employment Rights (Dispute Resolution) Act received Royal Assent last month.
- Consulting on proposals for clearer rules on information and consultation of employee representatives in the event of collective redundancies and transfers of undertakings.
- Also proposals to remove the current twenty redundancies threshold.
- Early in April, we announced new limits on compensation in line with inflation.
NATIONAL MINIMUM WAGE
- By early June last year we had appointed George Bain as Chairman of the Low Pay Commission. Soon afterwards, the other members of the Commission were in post.
- By the end of May we shall have the Low Pay Commission's recommendation on the initial level at which the national minimum wage might be set.
- At long last we are on the brink of having National Minimum Wage legislation on the Statute book. The Bill completed its House of Commons stages on 9 March, after three all-night sittings . I won't forget those sessions in a hurry! It had its Second Reading in the Lords on 23 March. We expect it to receive Royal Assent later in the year.
- This legislation will set a statutory level below which pay should not fall and, with the tax benefits reform, will be the cornerstone of our overall strategy to "make work pay".
- There will be a single national rate, with no exemptions or different rates by regions, sector, or size of firm.
The Bill will help ease pay discrimination since women - many of whom work part-time - are twice as likely as men to have low rates of pay. We are told that the pay "gender gap" is shrinking, but over half a million female employees earn less than £2.50 per hour compared with about a third of a million men.
LEGISLATION
- Signed up to the European Union's Social Chapter. Implementing the first four measures under the Social Chapter within the next two years.
- European Works Councils Directive
will come into force in the UK in December 1999, following a full public consultation.
- As will Parental Leave Directive.
- Supporting the Directive on burden of proof in sex discrimination also adopted last December.
- On 7 April, Part-time Work Directive extended to UK. Will consult fully on detailed arrangements.
- European social partners have begun negotiations on fixed-term contracts . Look forward to the outcome of the negotiations in the autumn.
WORKING TIME DIRECTIVE
- It is worth dwelling on the implementation of the Working Time and Young Workers Directives.
- For the first time people will have the legally enforceable right to three weeks paid annual leave, rising to four weeks, and the right not to be forced to work more than 48 hours a week.
- The draft regulations announced on 8 April will benefit families by ensuring that working parents have time to devote to their partners and to bringing up their children. We look forward to receiving comments by early June on the draft regulations.
- We also welcome the European Commission's proposals to extend in a pragmatic way the provisions of this Directive.
- Of course, each sector and activity have their own specific characteristics, and we need to look carefully at how any subsequent proposals take these into account. Proposals for legislation must respect our particular concerns - about air and road transport and junior doctors, for example. This is why we shall be working with the Commission and other Member States to arrive at balanced and sensible arrangements.
- There will be seven new rights:
- No worker can be forced to work over 48 hours.
- Over 2½ million workers will have 3 weeks paid leave (up to 4 weeks in 1999).
- Rest periods in work (when working over 6 hours).
- Rest periods out of work - including day off a week.
- Special protections for nightworkers and young people.
- Regular health checks for night workers.
- Legal protection against unfair dismissal or detriment for refusing to work excess hours.
- Can of course do voluntary overtime.
- The only mistake is excluding Ministers & MPs
FAIRNESS AT WORK WHITE PAPER
- In the near future, we will be publishing our White Paper on Fairness at Work. I know this is keenly awaited. Not least by me. We have taken considerable trouble to include the social partners in working up our policies. I make no apology for this. Unlike our predecessors we believe in consultation and involvement.
The White Paper, and the legislation which will follow it, are key initiatives. It is vital we grasp this opportunity to establish a new era for employment relations in this country. An era in which the aspirations of both workers and employers are realised. An era in which we can achieve both efficiency and decent standards at work. An era where partnership and trust are the norm.
- I'm afraid I cannot divulge at this stage the precise scope of the White Paper. But I can assure you that it will contain a balanced package of proposals providing new rights and responsibilities at the workplace.
The paper's centre-piece will be the proposals on union recognition. Proposals which will ensure that unions are recognised where a majority of the relevant workforce vote for it in a ballot. We must end the situation where employers can ignore the wishes of their workforce by denying recognition even though most of their employees clearly want it. At the moment, the power to determine whether recognition is granted rests solely with the employer. Workers have no rights or say in the matter. This arrangement cannot continue.
There are many issues to be decided in framing the new recognition right - the exact definition of the bargaining unit and the enforcement mechanism, for example. We have listened and will continue to listen to the views of both unions and employers in helping us decide the way ahead. We need to develop a balanced set of proposals which respect the genuine concerns of both sides.
- In so doing, we will be mindful of several practical considerations :
- we will seek to avoid fragmenting or undermining effective and representative collective bargaining where it already exists;
- we will not be imposing recognition where there is obviously no demand for it. Hence,the manifesto requirement for a ballot ;
- we want to encourage the parties - unions and management - to work out for themselves the arrangements which best fit their circumstances. Most recognition agreements should be voluntary. We do not want the law to be seen as the only route whereby recognition can be achieved.
- The TUC and CBI's joint statement on recognition, presented to the DTI just before Christmas, showed much common ground. For example support for a 'voluntarist' approach wherever possible.
- Differences remain. But the Government is confident that we will be able to devise workable proposals to bridge these differences.
CONCLUDING REMARKS
- I have spoken of the unique position of the Post Office and of our shared goal of preserving that position in the face of changing markets.
- And I have spoken of a variety of industrial relations issues.
- There is a common theme between the two and that is the importance of partnership. The need to work together to achieve our goals.
- There is no doubt of the need to deliver a new Post office for the next century.
My final message to you is to work with in partnership with all stakeholders in the Post Office to ensure that the business goes forward into the millennium with confidence and with its unique place in the public's affections intact.
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