Update on DM26 Talks, Government Intervention and the Future of Royal Mail

Postal

Joint Statement Overview

Two weeks ago, the union took the decision to pause any further deployments of DM26 because we believed Royal Mail was moving too slowly to address those units where the new system was not working effectively.  This was contrary to the national agreement.  In addition, the union believed Royal Mail was prioritising further deployments over carrying out the formal reviews needed to resolve local issues and make permanent the 8,100 temporary part-time uplifts.

The union also had major concerns. According to Royal Mail’s own figures, the company’s self-inflicted recruitment and retention crisis has increased from on average 326 to 400 employees leaving per week, primarily new entrants.  The CWU has been consistent in stating that unless the company honours its agreement with the union and delivers stable resourcing, then customer quality can never be properly restored.

On Tuesday 20th October, we held a Summit Meeting with the owners and CEO of Royal Mail to address these issues and identify a way forward.  Negotiations continued following the Summit and resulted in an agreed Joint Statement, which has been unanimously endorsed by the Postal Executive.

Main Points of the Joint Statement:

  •  There are 195 Delivery Units with more than 10,000 workplan failures and/or delivery point coverage below 90%.  These units will be prioritised and stabilised including the early implementation of Peak arrangements such as filling the fourth duty. Once stabilised, the units will undergo formal review, and a new deployment plan will be agreed and implemented by 31st January 2027.
  • All other reviews will now commence and be completed with priority given to units experiencing operational difficulties that are not included within the 195 identified Delivery Units.  We have already seen 1600 POD duties turn to 50/50 as a result of reviews; the key objective of these reviews is to ensure that the delivery unit is achieving all its quality targets.
  • We have agreed that 8,100 temporary uplifts will be made permanent in two phases:

    • 4,600 temporary part-time to full-time uplifts will be made permanent by the end of November 2026.
    • 2,500 temporary part-time to full-time uplifts, together with a further 1,000 temporary increases in contracted hours, will be made permanent through formal reviews and no later than 31st January 2027.
  • A further 15 Delivery Units will be deployed by 2nd November 2026.  These units have been identified locally for deployment and will still be required to pass the agreed stop/go-no-go process.
  • 107 Delivery Units will not deploy DM26 before 13th January 2027.  National discussions will determine how these units will operate during the Peak period.
  • We have agreed the key principles for the Peak Arrangements.  The objective is to conclude a full national agreement by 30th October 2026.
  • The company has agreed to bring forward immediate negotiations on the next step and full plan to equalise new entrants’ terms and conditions.
  • The company has also agreed an independent fatigue study, examining the impact of our members workload including the impact of extreme weather.
  • A commitment has been secured to develop and agree a new delivery model that takes account of the findings of the fatigue study and feedback gathered through listening sessions with frontline employees.

Our decision to pause was never about preventing the deployment of DM26.  Instead, it was about ensuring full compliance with the National Agreement and requiring Royal Mail to resolve outstanding issues and complete the formal reviews necessary to ensure all units are operating effectively and achieving the required quality of service targets.  In many of the failing units this will now require additional hours or investment in delivery, in line with the commitments set out in the National Agreement.

As well as bringing forward negotiations to achieve the next step and full plan for new entrant’s equalisation, we have also secured a commitment to develop a new delivery model that addresses the growing impact of parcel growth, which is increasingly creating unachievable workloads for delivery members.

We have also agreed to an independent fatigue study, which will examine both workload demands and the extreme temperatures under which our members work.  The findings will help shape the new delivery model, alongside direct engagement with frontline delivery members.  The new model will remain aligned with the revised Ofcom USO regulations.

Government Intervention and the Future of the Company

In a further development, the tripartite meeting CWU called for with the Government and the owners, has now been scheduled by the Secretary of State for the 3rd November.

The truth is Government intervention is ultimately the only way we can resolve the deeper rooted and long-established problems that threaten the future of the Royal Mail Group.

This is why the CWU are also campaigning for the Government and Public to support a radical new direction on the future of the company, including:

  • A level playing field to stop the Competition undercutting Royal Mail – ending bogus self-employment and the race to the bottom on the pay, terms and conditions of all workers in the sector.
  • A new regulatory framework that stops Ofcom damaging the finances of the business and blatantly promoting Competition over securing the future of the USO.
  • A more ambitious growth strategy that is not just based on replacing letter decline with parcels. Instead, we believe growth must also be driven by utilising Royal Mail’s unrivalled infrastructure to develop innovative services that put Postal Workers at the forefront of adding social and economic value to the UK.
  • A new ownership and governance model that provides for more public/customer accountability and is based on Government taking a bigger stake in the company, alongside the workforce.

As a result of the CWU’s campaign we have already seen the Government announce its intention, subject to a public consultation, to end bogus self-employment.

And there is definitely a will amongst politicians, including the Prime Minister, to look at a new way forward for the company and its workforce.