STRICTLY CONFIDENTIAL
FOR USE OF NATIONAL EXECUTIVE COUNCIL OFFICERS ONLY
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NATIONAL FEDERATION OF SUB-POSTMASTERS
REPORT OF A MEETING
OF THE
NATIONAL EXECUTIVE COUNCIL
held on
21st, 22nd, 23rd OCTOBER 1996
at
THE ABBEY HOTEL, MALVERN
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AGENDA
OCTOBER 1996
REPORTS AND RESOLUTIONS of the
Executive Council Meeting, held on 17th, 18th, 19th June 1996
Special Executive Council Meeting held on 2nd August 1996
Special Executive Council Meeting held on Ist October 1996
MATTERS ARISING FROM THE REPORTS I
REPORT OF THE NEGOTIATING COMMITTEE
The following reports refer:- NC/POCL 13.6.1996 [Pay Claim]
NC 15.7.1996 :
NC/POCL 19.7.1996 {Pay Claim]
NC 8/9.8.1996
NC/POCL 29.8.1996 [Pay 1996]
POST OFFICE GROUP
Post Office Board ;
1, Post Office Board ooo. .eccccccsssssssssussssscssssessssecssssessssvseseceses POBD NC
Privatisation
2. Government Review ..... +
- The Post Office Inquiry - Trade and Industry Committee
- Industrial Action and the Postal Monopoly
Post Office Counters
3. (a) Post Office Counters Board . PO PC 02 NC
(b) Reorganisation ..........ccccscscssssssssssssssssesesessseesessccssses PO PC 03
- The Retail Development Centre
- Outlet Categorisation
1 Revised 18.10.1996
* indicates alteration or addition to previously circulated Agenda
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« ,
Off-Shore Islands
4. (a): ~Guemsey .
(b) Isle of Man
(c) Jersey...
POST OFFICE COUNTERS LIMITED
Commercial
5. Marketing Briefings PCCMOl1 NC
Franchise Offices
6. _ Franchise Offices ........ eee wsPC FO (
- Independent Franchising “
- Agency Transfer Project
Human Resources
7. Training for Subpostmasters ............sssssesessessesssetmeeessnenes PC AR 04 NC
Mailwork
8. Payment System . NC
Network
9. (a) Local Area Network Plans ........c0scorssssressssteeeeesssss PE NW 02 C
- Conformance Trial - Raising the Standard
(b) Counter Automation - BA/POCL «0.0... teens PC NW 06 01
(c) Counter Automation - APT/Bar-coding .........-.-0000- PC NW 0602 NC .
(d) Counter Automation - ALPS «0... PC NW 06 07
- Reimbursement of electricity costs
(e) Counter Automation - Mondex Trial .........-sseccesee PC NW 0608 NC
(f) Funding of SPSOS ......cccscccsesesneescsesseeessnetesnnaes PC NW 0903 NC
(g) Regional Cash Analysis and Logistic Link ................... PC NW 09 04 NC
2 Revised 18.10.1996
* indicates alteration or addition to previously circulated Agenda
10.
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Security
(@) “Counter Attack” Security Booklet .PC NW 11
(B) POCLINFSP Meetings ......cccccssssscscssssssssssssessssessscssssseee PCNW1101
(©) Devolution of Budget to Regions .......... PCNW1101 NC
- ‘Matrix’ Approach to Format and Security
- Regional Security Forums
(d) Equipment ............. a PCNW 1102 NC
- Security Questionnaire an
- Trial of Smoke & Dye Packs
- SPSO 2000
- New SPSO anti-bandit screen (SPSO 2000)
- Access Doors
- Anti-intruder Alarm Grants
~ Proposed Trial of Remote Alarm Signalling
- Open Plan
(©) Trauma Care Programme PC NW 11 03
CD CASHCO oa aeeeeeesccsessssssssscernnnssttinuescsssenesesssseeee PC NW 11 08 NC
(2) ...PC NW 1109 NC
Product Range
(@) Postal Orders... eccecsscssssnsesssssnsetsssssessassPC PR O1
(b) Gift Vouchers wc PC PR 06 *
Quality
Customer First ..00...eccssccesseee
- Change in Focus of the Quality
- Compensation Trial Research
- Charter Mark
- Waiting Time Measurement System
- Putting Customer First - Transactional Training
- Market Research
PC QY 01
‘unction
3 Revised 18.10.1996
* indicates alteration or addition to previously circulated Agenda
13.
15.
16.
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Subpostmasters Contract
(a) Termination Procedures ..........ssessesecscseesectsseetseeeenes PC SC NC :
(b) Introductory Payment .. ..PC SC 04 NC
(©) Advertising/Canvassing PC SC 07 NC
- Franchise Contract Post Offices: Incentive
Schemes & Customer Loyalty Schemes
(d) Loss of Office (Compensation Agreement) ..............6 PC SC 12 NC
(e) CashStop ... seeesceesteeeeeneeatsreniatsnetttestearsareesssseesss PC SC 21 01
- GET. Discount
(ff) NIPOC ....... ..PC SC 28
f
Subpostmasters Pay
(a) Pay Review oo... eccsseescssreeecsstecsseeseseseesessseessseeessseeereee PC SP NC
(b) Pay Claim 1996
(c) Unit Credits .. sesesseueseeeese PC SP O1
- Revision of Postage Stamp Unit ‘Credit I
(a) Intermittent Allowances ..........e+escsssesessseesssseseseseees PC SP 0203 NC
{e) Telephone Allowances . PC SP0206 NC
POCL CLIENTS (
Benefits Agency ...........ccccceeeesseeeeseitsreenneneenee CL BA
British Gas
British Gas Quantum ..........seseeeeeteeeeeeesteseeeenseeseees CL BG 03 NC
British Telecom
BT Telephone Savings Stamps - ‘Budget Card? ..............+ CL BT 03
4 Revised 18.10.1996
* indicates alteration or addition to previously circulated Agenda
18.
19.
20.
21.
22.
23,
24,
25.
Electricity Boards
Multiple Transactions on APTs & ZipZap Machines .CLEB
Foreign Exchange
Corporate Bureau de Change .......sscccccecssscscssssecsessessssscscesee CL FX 03
Girobank
(a) NFSP/Girobank Meetings ..00........cccccssscecssseeesssssessssens CL GB 01
(b) Products and Counter Services .. ...CL GB 08
Insurance
(a) Travel Insurance oo. ccceccccscssessssssessarsesesssecssstaecaseees CLIN OL
(b) General Insurance ........cccccccccsssssssssssssssssssssssesssessessses CL IN 02
- Sun Alliance
Local Authorities
Home Help/Care Stamps o...ccccccccccccssssessssssssssessearssvesecsssece CLLA OI
Lotteries
(a) National Lottery occ ccc cecsssesssesessssescesvesecercens CLLOO}L
- Camelot Vouchers
- — Instants
- Prize Payments
Motoring Organisations
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NC
CL MO 02 NC
National Savings
NFSP Meetings .CL NS 01 NC
By} Revised 18,10.1996
* indicates alteration or addition to previously circulated Agenda
ogee
26.
27.
28.
29.
30.
31.
32.
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Personal Banking
Personal Financial Services
- Trial in North Wales & North West Region
CL PB
Payment Collection Services
(a) Vodafone .. CL PC 04
(b) Secure Homes ......eecceccsesssessessessseesscsssnesssessneeseees CL PC 05
Royal Mail
Priority Services ........sccscssesssseescessssessneseeccnesnnecnenseeneeneeenes CL RM 0502 NC
Utilities
(a) Amerada Hess Gas Ltd/British Fuels/
Southern & Phillips Gas .............cccccsesseseeseeeeseeseeeeees CL UT
(b) Total Gas ..... -CL UT 04
Water Authorities NC
Organisations
POUNC. oon cccecescseeseessessseecsesssessseesneseceeeseenecanecsnssneneeeateatenees FM 00 NC
Conference Resolutions 1996
.. 1996 Pay Award
96/4. Pay Review: referendum
96/11 Pay Review: special conference
Pay Review: consultation with Branches
Pay Review: no reduction in remuneration
Counter Automation: payment for pensions and allowances
.. Introductory Payment phased over 5 years/Pay Review
.. Introductory Payment, trading up/Pay Review
Mailwork: address any shortfall in pay
..Mailwork: parity of pay for Community Offices
6 Revised 18.10.1996
* indicates alteration or addition to previously circulated Agenda
*
lay
«
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- National Lottery: improved payment systems for prizes paid
.364 day year/Pay Review
. Ad valorem pensions and allowances/Pay Review
- Interpretation of what constitutes training for new work
Pricing policy for local authority schemes
Telephone allowance/definition of controlling office/Pay Review
Purchase of leasehold/freehold where franchise office nearby
makes unviable/Pay Review
Stress counselling
Open plan offices
Security screen parcel hatch door
Interest free loans for external security improvements
Provision of relief/s whilst Sub-Postmaster recovering from
trauma .
Acceptance of debit and credit cards for all transactions
A/4 SPARE HEADING
A/S SUB-COMMITTEE REPORTS
A) PUBLICITY AND DEVELOPMENT. COMMITTEE
The following reports refer: 12, 13 & 14 August 1996
1. REPORT OF PREVIOUS P & D MEETING
2-4 June 1996
2, FEDERATION ANNUAL CONFERENCE
Annual Conference 13-15 May 1996 - Eastbourne FM AC 1996
Annual Conference 12-14 May 1997 - Llandudno FM AC 1997
Annual Conference 11-13 May 1998 - Bournemouth FM AC 1998 .
Annual Conference 10-12 May 1999 - N. Ireland FM AC 1999
Annual Conference 2000 FM AC 2000 I
3. FEDERATION INTERNAL
a) MEMBERSHIP STATISTICS FI MR 04
b) RE-MANDATING EXERCISE PC HR 03
7 Revised 18.10.1996
* indicates alteration or addition (o previously circulated Agenda
°
4)
e)
4.
a)
b)
°)
MEMBERSHIP SERVICES
Contract of Employment Forms (also Res 95/88)
Federation Ties - Centenary
Legal Protection & Assistance
Membership Cards
NFSP Credit Card
Members Bulletin
Recruitment
BRANCH SECRETARY SEMINAR
Keele 1997
FEDERATION ORGANISATION :
Branch / Regional Organisation Rules
FEDERATION PUBLICATIONS
“The Sub-Postmaster”
Sub-Postmasters Handbook
Speakers Brief
Branch Secretaries Guide
FEDERATION/PROMOTIONAL & PUBLICITY
Federation Centenary 1997 :
Wakefield Weekend
Other Events
Sub Post Office Exhibitions
Edinburgh 12-13 October 1996
Birmingham 11-12 October 1997
Charity Fund - Children in Hospital
Charity Fund - Macmillan Nurses
FEDERATION PUBLIC RELATIONS
Tim Cobb
CONFERENCE RESOLUTIONS 1996
Subscription Review
Advertising Space System
Support for Branch Secretaries
Purpose and Format of Annual Conference
Sub Postmasters Internal Prize Draw
8
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FM MS
FM MS 03
FM MS 03
FM MS 04
FM OG 04
FM PB O01
FM PB 02
FM PB 04
FM PB 07
FM PP CENT 97
FM PP 01
FM PP 03
FM PP 03
FM PRO]
96/86
96/89
96/90
96/94/95
96/96
Revised 18.10.1996
* indicates alteration or addition to previously circulated Agenda
‘
’
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CONFERENCE RESOLUTIONS (Previous)
Access to Legal Services 95/85
Access to Legal Services 95/86
Guidelines for Employing Staff (See FM MS 02) 95/88
Future Dates and Venues of EC Meetings
Jan 1997 Sunday 5.- Tuesday 7 January 1997 Malvern
March 1997 Sunday 16 - Wednesday19 March 1997 Malvern
June 1997 Monday 16 - Wednesday 18 June 1997 Malvern
Oct 1997 Monday 20 - Wednesday 22 October 1997 Malvern
B) FEDERATION TRUSTEES REPORT
C) BOARD OF BENEVOLENCE REPORT I
A/6é SPECIAL MATTERS
A) MEMBERSHIP
(i) New Membership Computer
(i) — Membership Subscription Forms
(iii) Propaganda Reports
B) FINANCE
(i) Treasurer’s Report
Gi) Annual Conference Costs 1992-1996
(iii) I Outstanding Audited Branch Account: . FI AC 02 I
(iv) Composite Branch Return to the Certification Officer 1995 FI CO 03 I
(v) __ Disbanding of District Committees ..............s.cccssssseesssseeesee FM OG 04 *
(vi) Regional Council Union Facilities ..........cccccesessssssessssereee FM 0G 05 *
C) JOURNAL I
i) Editor’s Report o.......ccecscsssesecssssssseesssseesssscsassvecsaneeennecenaee FM PB 01
D) TRADING
(i) Eagle Star Scheme .... ... FLIES
9 Revised 18.10.1996
* indicates alteration or addition to previously circulated Agenda
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A/7 CONFERENCE RESOLUTIONS PRIOR 1996
95/55 & 75 .,Operating Procedures I
95/61... . Helplines \
A/S CONFERENCE RESOLUTIONS 1996
..Community Offices '
tatutory Holidays \
..NFSP Service Level Agreement I
. Sub Post Office Relief Personnel
96/62 & 74. isposal of Obsolete Stock
96/63 & 78. perating Procedures i
96/ 65 & 66 Market Research .
Royal Mail Products
QO/B3 oo sescecssessesseeseesesseeeeess Standardisation of Certificates of Insurance and
Temporary Cover Notes
A/9_ MOTIONS TO THE EXECUTIVE COUNCIL
10 Revised 18.10.1996
* indicates alteration or addition to previously circulated Agenda
sone
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A/10,) DEPARTMENTAL CORRESPONDENCE
(A) FOR DISCUSSION
POST OFFICE COUNTERS LIMITED
Network
VT. (a) Cash Accounts oo... cccsssesscsssecsesssressueessarecsssesstseee PC NW 08 01
- Re-Design of the P884MA “Inward Remittance Advice”
~ 1997/98 Cash Account Design
Subpostmasters Contract
2. (a) Christmas and New Year Arrangements 1996/97 ........ PC SC 05 01
(b) Royal Mail Industrial Action .......0....cccccsssecsssessseesseees PC SC 23 I
Subpostmasters Pay
3. (a) Review of the “IDEAS” scheme ........c.ccccscsseecssesessseee PC SP
(D) POT ceecccccsesssseesssenseeisstssensssistssssisssieennePC SP 05 O1*
POCL CLIENTS
BBC
4. (a) Television Licences .........ccccscscscsssssesssssssecsessesssveseeess CL BC 03
- BBC Cash Easy Entry Automated Scheme
~ Proposed New Procedure for Blind Concessions
British Gas
5. (a) Bar-Coded Transcash Bills ........0..cccsccssessseesseeeesseeese CL BG 02
Girobank
6. (@)_ IDEAS Scheme oo.eeccescceessssssssseesnseesesssssssseeetseseses CL GB 08 12
YW Revised 18.10.1996
* indicates alteration or addition to previously circulated Agenda
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Lotteries !
T. (8) Littlewoods oooeeceecesssssescssesesseseesesecensessneareneenensaenees CL LO 02
- Operational Changes *
- Retail Side, Roll-~Out
Royal Mail
8B. (a) Stamps oo eeccecsesesestesesecessneasseeesteecseessensseesenseneese CL RM 05 05
- Special Stamp Issues *
- Christmas 1996 Special Stamp Issue
- Send a Cake Promotion
A/1l0 (B) FORINFORMATION ¢
Commercial
1, (a) Market Research o....ccececececsesesesteceesneneeeenearnaes PC CM 02
Human Resources
2. (a) Behaviour Standards . ..PC HR
Network '
3. (a) Counter Automation - BA/POCL .......ccssssseceeeeeeeeseeee PC NW 06 01
- Research : Foreign/holiday benefit encashments *
- Talking Shop Audio Cassette
a
(b) Cash Accounts seeeceeseaneneene PC NW 08 01
- Table 2: Unclaimed payments *
- Cash Account Dates 1997/98
(Cc) Funding of SPSO8 .........csccscceesecseessesseesneeseesneeneeeeneenes PC NW 09 03 .
Quality
4. (a) Customer First PC QYOL
(b) Christmas Card re-cycling scheme ............ssessseessssene PC QY 03
12 Revised 18.10.1996
* indicates alteration or addition to previously circulated Agenda
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POCL CLIENTS
Benefits Agency
5. (a). Pension and Allowance Books / Green Girocheques ....CL BA 03
BBC
6. (a) BBC Cash Easy Entry Scheme . ..CL BC 03
Foreign Exchange
7. (a) UNICEF - Donation of (customers’) surplus
FOrEIAM COIN ooo. eeecssesecsssecsssescessarecssnsecessecssnsussssseessses CL FX 01
Girobank
8. (a) Girobank Error Notices . ... CL GB 05
(©) Woolwich Will Writing Services 0.0.0.0... CL GB 08 01
(c) Deposit Information Monitoring Exercise ...................CL GB 08 07
Lotteries
9. (a) Lottery Products - Point of Sale ooeeccccccccccscccscssseccssses CLLOO}
Mercury Communications
10. (a) Mercury 0-2- Automated Scheme ......cccccscescsssseseessecsee CL MC 02
Royal Mail
11. (a) Royal Mail Retail Sales... eeeccceccccessssssseestsesssseesses CL RM 05 05
- Special Stamp Issues / Philatelic Products
A/1l_ REPORT ON CENTRAL APPEALS
13 Revised 18.10.1996
* indicates alteration or addition to previously circulated Agenda
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A/12_> GENERAL SECRETARY'S REPORT
istance:-
Cluster Groups
Discussion on the Future Structure/Strategy of the
National Federation of Sub-Postmasters.
A/M3 EXECUTIVE OFFICER'S REPORTS
- A/l4- MATTERS RECEIVED TOO LATE FOR INCLUSION ON AGENDA °
ANS ANY OTHER BUSINESS
14 Revised 18.10.1996
* indicates alteration or addition to previously circulated Agenda
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I
REPORT OF A MEETING OF THE EXECUTIVE COUNCIL
held on 21st, 22nd, 23rd OCTOBER 1996
at the ABBEY HOTEL, MALVERN
Present Mr. J. E. M. Burford, National President and Chairman
Mr. I. Abernethy Mr. R. Edmondson
Mr. H. Atkins Mr. B. G. Ingham
Mr. N. Bradbrook Mr. J, Jannetta
Mr. J. Brennan Mr. H. M. Jones
Mr. D. T. Broadwith Mrs. J. G. Kendall
Mr. A. M. Burrows Mr. D. F. Marshall
Mr. A. R. Butlin Miss E. O. Parcel! I
Mr. M. Challinor Mr. J. Peberdy
Mr. M. Darvill
I
I
In Attendance: Mr. C. Baker General Secretary j
Mr. K. Davis Assistant General Secretary
Mr. P. Heasman Assistant General Secretary
Apologies: Miss C. A. Lindon
EXECUTIVE COUNCIL ~ OCTOBER 1996 1
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A/l_ REPORT AND RESOLUTIONS OF THE Se]
EXECUTIVE COUNCIL held on 17th, 18th, 19th JUNE 1996
SPECIAL EXECUTIVE COUNCIL held on 2nd AUGUST 1996
SPECIAL EXE! we BER.
The reports of the above meetings were approved as circulated. DECISION
A/2) MATTERS ARISING FROM THE REPORTS
There were no matters arising.
A/Z REPORT OF THE NEGOTIATING COMMITTEE
REPORT OF MR. BURROWS, Chairman of the Negotiating Committee: The reports [Dace
of Negotiating Committee meetings held on 13th June, 15th July, 19th July, 8/9th
August, 29th August 1996 had been circulated and were accepted.
1 POST OFFICE BOARD - PO BD
Nothing to report.
2 GOVERNMENT REVIEW - PO PZ
- THE POST OFFICE INQUIRY - TRADE & INDUSTRY COMMITTEE
The Select Committee on Trade and Industry met on Wednesday, 16th October to take
oral evidence. The inquiry was a victim of the electoral cycle and was no more than a
charade of an inquiry. There was very little interest from the Select Committee itself, r
there being only three in attendance at any one time and questions were limited to the
conversion of Crown Offices and the EFL. The difficulty surrounding the potential
loss of monopoly was touched upon but there was no great conviction in the questions
asked, nor the replies received. The whole inquiry had the hallmarks of one that had to
be done because it was time for it to be done but everyone participating in the inquiry
had no illusions about whether the recommendations made by the Committee would be .
acted upon. POUNC and The Post Office were questioned on Sub-Postmasters’
remuneration. POUNC’ view was that whilst there were a number of small post
offices closing, the payment system gave the smaller offices more money pro-rate and,
therefore, everything in the garden was rosy. When the Post Office was questioned
John Roberts merely advised the Committee as to the arguments of the Federation
whilst negotiations continued. The Committee appeared to accept the response, doing
no more than going through the motions. The Federation had been thanked for the
memorandum. The GENERAL SECRETARY and Research Officer were thanked for
the report of the oral evidence which had been circulated.
2 EXECUTIVE COUNCIL - OCTOBER 1996
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Irrelevant —
3(a) POST OFFICE COUNTERS BOARD - PO PC 02 I
There had been little change to the Post Office Counters Board since the appointment - \
of Stuart Sweetman, Managing Director, although there had been some Te-arranging of
positions lower than Board level which would be reported upon later. The vacancy for
the position of Regional General Manager in the North Wales and North West Region
still remained and John Main, the current Regional General Manager in the Midlands
had taken responsibility for the North Wales & North West Region in the interim
period. It was understood two internal candidates had applied for the position.
Irrelevant
EXECUTIVE COUNCIL - OCTOBER 1996 3
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Irrelevant —
4 EXECUTIVE COUNCIL - OCTOBER 1996
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Irrelevant
7 INING FOR SUB: - PC HR 04
There was no progress report available on Sub-Postmasters’ training. The subject had I
been repeatedly discussed with the Business, who freely admitted it was an area in i
which they were lacking. In order to resolve the issue of Sub-Postmasters’ training the !
matter would continue to be pursued in the strategic and pay meetings with the Post
Office.
MR. BURROWS placed on record his thanks to Mr. Atkins for his input and efforts at
the Training QIP.
MR. ATKINS reported that in his Region the Post Office had a budget to provide
facilities for a two week classroom style training for Sub-Postmasters,
MR. JONES advised no budget existed in the North West, also Roadshows had been
stopped.
MR. BURROWS stated the Post Office intended to hold five transactional seminars in
Ipswich but no budget existed for basic training of Sub-Postmasters.
EXECUTIVE COUNCIL - OCTOBER 1996 3
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Irrelevant
9(b) COUNTER AUTOMATION - BA/POCL - PC NW 06 01
The letter from the General Secretary dated 25th September gave further information
on the initial Go-Live of the counter automation project. The project was now well
under way and following the successful line cleaning exercise at Leonard Stanley Post
Office, the other nine post offices in Gloucester would be going live as well as the
offices listed in the circulation on 25th September 1996. Confirmation of the liaison
with Pathway and Post Office Counters had been received from Paul Rich on 4th
September 1996. The main question now from Sub-Postmasters was how their pay
would be affected. Clearly that had not been discussed with the Post Office as the
contractual relationships between Pathway, Benefits Agency and Post Office Counters
had yet to be totally completed. The Federation was building up intelligence in
readiness for the negotiations.
6 EXECUTIVE COUNCIL ~ OCTOBER 1996
Scissor:
THE GENERAL SECRETARY reported on his attendance at the official launch at
Leonard Stanley Post Office on 21st October 1996. The launch had been fairly low
key even though The Rt. Hon. Peter Lilley MP, Secretary of State, had attended in
Conjunction with Peter Mathieson, Chief Executive of Benefits Agency, John Bennett,
Managing Director of Pathway and Stuart Sweetman of Post Office Counters, Peter
Lilley had spoken on the PFI and fraud aspects; John Bennett told of their role and
expected 890 million transactions to be conducted in the first year. The Sub-
Postmistress at Leonard Stanley was delighted with the new system which was
working well. It was hoped the Government would approve every item of new
business for the Post Office. It was anticipated the Post Office and Federation would
issue a joint letter informing Branch Secretaries and members in order to allay fears
tegarding the future, particularly pay. The Counters Business had agreed members
should be advised about matters yet to be negotiated, for example, pay.
MR. DARVILL referred to the request six weeks previously to arrange for six Sub-
Postmasters to be available for consultation regarding automation with the Benefits
Agency, but no discussions had taken place. THE GENERAL SECRETARY
explained Mr. A. Stott had initially sought the meeting but had since been transferred,
replaced by Mr. P. Crahan and hoped the meeting would take place.
MR. BURROWS commented that if multiple payments for transactions had to be made
it would not be in the interest of Sub-Postmasters, nor ICL. When information was
downloaded the transactions would be separated for accounting purposes at
Chesterfield. In order to protect Sub-Postmasters it would be necessary to ensure the
tight multiplier for the number of payments was employed. Preliminary work and
research was being undertaken in readiness for the negotiations. Assurance had been
received that the PFI would pay for the system and any reduction could be referred to
the Government.
MR. BRADBROOK advised that Shepway had discontinued the use of rent vouchers,
with Haringay, Woolwich and Greenwich Councils considering following suit. London
Sub-Postmasters undertook 600 to 700 Council rents per week and their income
would be cut. He expressed concern that family allowance and income support would
be combined on one card.
MR. BURROWS had no intention of Sub-Postmasters taking a cut in salary. 25% of
Benefits Agency staff had been made redundant because of automation. £150 million
would be saved per year in fraud. If it was not for the card, payment of benefits would
have ceased at the post office and 75% of Sub-Postmasters would have lost their
businesses. He had an ambition for the payment of abortive transactions as every
transaction on automation would be listed. MR. BURROWS was aware some
payment would have to be re-negotiated. He suggested being positive to Sub-
Postmasters, not negative.
MR. BROADWITH felt it was important that at the on-line trial offices Sub-
Postmasters identified the transactions carried out as well as the Post Office in order to
check they were paid at the appropriate rate. Problems had been encountered with the
electric supply at some offices. Pathway was willing to be responsible for the
EXECUTIVE COUNCIL - OCTOBER 1996 7
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rectification of a faulty system in respect of its equipment but Sub-Postmasters would
be responsible for the cost of remedying the rest of the electrical wiring in their offices.
MR. DARVILL stated it was incumbent upon Sub-Postmasters to maintain their
property in a fit condition and Sub-Postmasters should not allow their electrics to get
into a dangerous state and then expect the Post Office to be responsible for the cost.
He suggested an item be published in The SubPostmaster journal. warning people that
their electrical systems should be up to standard as the Benefits Agency and
automation would not pay for re-wiring of premises. MR. BURROWS drew attention
to the policy of the Executive Council that electricity up to the tails was the
responsibility of the owner of the business.
MR. MARSHALL understood Pathway and the Post Office had negotiated a payment
on every transaction through the automated machine and felt it was now time the
Federation discussed the payment to Sub-Postmasters.
MR. ABERNETHY advised that when automation had been introduced in Southern
Ireland Sub-Postmasters had not experienced a reduction in their payments. Following
enquiries he later advised the meeting that the unit system was still maintained, old age
pensions were 2.7 units per transaction; Savings Bank work could be conducted
through the computer; Social Security was downloaded every week.
It was reported from several Regions that following visits to Branches and exhibitions
Pathway was creating unease amongst members regarding pay. MR. BURROWS
advised negotiations had not commenced because of the need to ascertain contractual
relationships between POCL and Pathway. In his view if Pathway was paid by the
Benefits Agency or’the Post Office for an abortive transaction, so” should Sub-
Postmasters. He understood that Pathway would be paid for every transaction. He
accepted Sub-Postmasters were concerned about pay and wanted negotiations to
commence.
9(c) COUNTER AUTOMATION - APT/BAR-CODING - PCNW 06 01
The situation reported at the June Executive Council meeting remained unchanged. As
yet Post Office Counters Ltd had not approached the Federation regarding a reduction
in the payment for the acceptance of utility bills and the Federation had not
volunteered it. Indeed, it was Federation policy to pursue a claim for an increase in the
whole of the bill payment area, the existing payments having been fixed as an interim
payment some while ago. The position would be carefully watched.
MR. BUTLIN enquired if the Counters Business intended purchasing more APT
machines as conflicting reports were being received. APT machines had been removed
as surplus to requirement for the North East. MR. BURROWS stated originally the
Post Office had intended to purchase more APT machines but it was now understood
the Post Office was trying to identify offices which either had too many or unused
machines and re-locate the machines where they would be utilised.
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MR. BUTLIN reported the South West Water smart card trial could not use a ZipZap
machine, yet the trial was in an area with a few APTS. It had proved impossible to get
a logical answer. MR. BURROWS stated a check would be made to ensure sufficient
APT machines were available before Christmas for the trial. MR. JONES reported a
similar problem in the North West and North Wales for which Sub-Postmasters would
receive the Giro payment.
MR. BURROWS expressed concern that the bills being bar-coded may qualify for an
APT payment, whereas the current payment for Pivot 7 was 20p. Bar-coding also
took longer.
9(d) COUNTER AUTOMATION - ALPS - PC NW 06 07 1
> REIMBURSEMENT OF ELECTRICITY COSTS \
MR. BURROWS referred to the letter from Mr. Darvill seeking a retrospective I
payment of £106 per terminal for 52 weeks since the scheme started two years ago. It i
was noted that Mr. Darvill wished to adopt Mr. Sheehan’s motion circulated under A/9 I
of the Agenda as follows:
“This Executive Council instructs the Negotiating Committee to
seek to obtain an annual goodwill payment for the Subpostmasters
currently operating the ALPS system in the London Region.”
With regard to the electronic stop notice system, MR. DARVILL stated the bar-coding
used in London was not simple to operate and frustrated members because it took
longer to complete a transaction.. Bar-codes had been lifted from pension books and
transferred to other books, The DSS had used smaller eyeles but thieves replaced them i
with standard size eyelets and it was difficult to detect the difference. Differing i
instructions for recall notices issued by the DSS were upsetting customers. There
were 400 APT machines in London. Hackney Council used plastic cards which could
not be used in banks, so Sub-Postmasters were benefiting from the business. Software
was not being activated. Sub-Postmasters were only asking for the payment of their
electricity costs because the DSS had saved over £64 million in the first year. He
suggested activating APT on keyboards. He understood London would be the last I
area to be automated and believed CashStop would start in London, Birmingham and
Manchester.
MR. BURROWS stated CashStop would not start in London because Sub- .
Postmasters had APT machines. The ALPS system had been successfully introduced
as a stop gap for the purpose of reducing Benefits Agency fraud and to enable Sub-
Postmasters to retain the business. He paid tribute to the London Sub-Postmasters for
their efforts in reducing fraud and their co-operation with the ALPS equipment. It
would be difficult to identify the cost of running an ALPS system and substantiate a
claim, particularly when trying to maintain the work. The APT machines had been
introduced as a means of co-operation to retain the Benefits Agency work. It was
frustrating that the APT and ALPS systems had not been joined together.
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_MR. BRADBROOK stated it cost £105.62 per year to operate an ALPS machine on *
the counter. London Sub-Postmasters were seeking a one-off payment. ane
MR. BROADWITH suggested timing the ALPS transaction, which, if longer, could I
increase the queuing times. : I
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MR. CHALLINOR drew attention to the excessive heat generated by the computers [ACTION
which necessitated the installation of air-conditioning.
MR. DARVILL AMENDED THE MOTION AND PROPOSED that the Executive DECISION]
Council seek to obtain a goodwill payment for the Sub-Postmasters currently operating ACTION
the ALPS system in the London Region. SECONDED by Mr. Bradbrook. AGREED
by the EXECUTIVE COUNCIL.
9(e) COUNTER AUTOMATION - MONDEX TRIAL - PC_NW 06 08
There was nothing to report since the June Executive Council meeting. There would
appear to be nothing for the Negotiating Committee to involve itself with the trial and
it was suggested that the matter be discharged from the agenda of the Negotiating
Committee to be brought back should the need arise.
MR. BUTLIN advised the trial had been extremely successful with a 25% take up. He ACTION
suggested investigating the Mondex trial prior to discharge from the agenda.
MR. CHALLINOR understood the trial would be extended by the banks.
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15 BENEFITS AGENCY - CL BA
Concern had been expressed in July regarding the press reports of the Benefits Agency
seeking private partners to administer Child Benefit. Recently the Sunday Telegraph
had resurrected the story but Sub-Postmasters should be assured there was no cause
for anxiety..
THE GENERAL SECRETARY stressed the Benefits Agency had entered into an
eight year contract with Post Office Counters which carried severe penalties if
cancelled. It would not be possible to use the payment card in “hole in the wall” and
automatic telling machines, Close contact with maintained with the Secretary of State
for Social Services and his Department.
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Legal Protection & Assistance
MR HEASMAN detailed the presentation given to the P&D by
Mr Peter Abraham of Management Advisory (Personnel and Incentive Services)
Ltd (as contained in the circulation of 18 October 1996, reference Con Res 95/85 86
& 88). He illustrated the provisions on a flipchart as follows:
LEGAL ADVICE
1) 24-hour legal advice line costing £1.50 per member (+ VAT)
2) Free on request by member
3) Fully accountable
4) Federation Helpline with separate number (0990)
Number could be retained even if Helpline provider changed,
5) Deposit and 12 monthly payments
COSTS
16,000 members = £37,424, £25,600 + VAT = £30,080 payable in 4 instalments of
£7,520 and one-off initial cost of £7,850 + VAT. . I
VOLUNTARY OPTIONAL EXTRAS FOR £25 PER MEMBER I
Contract of employment master form and advice to guide on contract, terms and
conditions, advice and changes in law.
24-hour counselling Helpline.
For each fee paid, £6 to be returned to the Federation.
For an additional £4.75 + VAT per member of staff, the Sub-Postmaster can
provide each member of staff with a bespoke contract who will also have access
to the counselling Helpline.
ADDITIONAL LEGAL ASSISTANCE COVER PER MEMBER
Approximately £85 + VAT for first year to cover legal fees up to £50,000. I
MR BRENNAN illustrated the advantage of the cover by citing the instance of a
Sub-Postmasters selling a winning scratchcard to second, instead of first,
customer at his counter, and being sued by the first. MR EDMONDSON, as
Treasurer, advised he might have to revise his forecast on a subscription
increase. .
MR ATKINS proposed accepting the P&D recommendation regarding legal
advice services, and for the return of the £6 to the Federation when members ia
opted for the voluntary extra at £25. MR ABERNETHY seconded the proposal.
A vote was taken and the Executive Council declared IN FAVOUR.
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Future Dates and Venues of EC Meetings
Jan 1997 Sunday 5 - Tuesday 7 January 1997 Malvern
March 1997 Sunday 16 - Wednesday 19 March 1997 Maivern
June 1997 Monday 16 - Wednesday 18 June 1997 Malvern
Oct 1997 Monday 20 - Wednesday 22 October 1997 Malvern
The Report of the Publicity & Development Committee was approved.
B) FEDERATION TRUSTEES REPORT
MR ABERNETHY advised that the Federation Trustees had met on Sunday 20th
October 1996 when it was reported that the problems of screens freezing on the new
computer system continued to tax the expertise of ICL who were devoting a great deal
of resource to identifying the cause. The difficulty was that the fault was both
intermittent and unpredictable. However, it was not preventing the system being used
fully by numerous members of the HQ staff, the problem being only very minor and
more of a nuisance than anything else. The software for the membership system
provided by Miller Technology was working very well. The provision of membership
data on disc by Post Office Counters was being discussed, their opening offer was for
the Federation to pay £5,000 for the initial programming and then £50 per month for
updating and this would be the subject of further negotiations.
The Treasurer had advised the Trustees of his intention to recommend to the Executive
Council that, for the future, half-year account would be produced to replace the
Statement of Receipts and Payments as these would be more meaningful and could be
produced at no additional cost. The Trustees had agreed to the introduction of an
“Itemised Business Tariff” for bank charges to replaced the “Entry Charging”
method. This would enable the Federation to exercise greater control over what it
paid in bank charges. The Alliance & Leicester was to change its status and, as a
result, members of A&L would receive a conversion bonus. However, this could not
be paid to organisations, such as the Federation. In consultation with solicitors it was
decided that MR ABERNETHY, as Chairman of the Trustees, was to be the
nominated member in order to reap the benefits of the expect bonus. Another matter
recently regularised was the legal ownership of Evelyn House - again, with solicitors’
advice a Trust Deed had been completed which names MR ABERNETHY, as
Chairman, as “Bare Trustee” (a legal term) as the legal owner of the property.
The Trustees had reviewed the Federation’s portfolio, together with the advice of the
broker, Mr Eason, who had recommended selling Burmah Castrol and half the
holdings in IMI and using the proceeds to building up the investment in British Steel
and purchase 2 new holdings: National Westminster and Commercial Union Insurance.
The broker’s advice had been accepted. The Trustees had agreed to the “bed and
Breakfast” arrangements for the chargeable gains from those transactions in order to
minimise potential Corporation Tax liabilities on disposal during the year.
It was MR ABERNETHY ’s sad duty to say goodbye to Harry Atkins, his fellow
Trustee and dear friend. He greatly appreciated and highly valued the advice and
support he had received from him over the period he had been Chairman and wished to
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place on record his personal thanks and that of his fellow Trustees, both past and
present. Mr Atkins would be sorely missed. (NB as noted at the beginning of this
Report, Miss Kit Lindon was elected to replace Mr Atkins as a Federation Trustee).
The Report of the Federation Trustees was accepted. DECISION
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B) FINANCE
@ Treasurer’s Report FIAC 02
MR EDMONDSON drew attention to his circulated report, also to the Statement of ¢
Accounts for the period 1 January - 30 September 1996, together with Philip Bloor’s ¢
appended notes. As stated at the June EC Meeting, he questioned the value of the
Statement and comparison of income and expenditure during the current compared to
the previous year as so much depended on when accounts were received or settled.
He therefore proposed the Statements being replaced by the provision of Management
Accounts with Balance Sheet for the half-year ending 30 June, ie, half-yearly accounts
as adopted by most large businesses, These would have more meaning and they would
show the true position at 30 June and provide the opportunity to forecast the second
half of the year and take any preventive or corrective measures found necessary.
Following the announcement at Conference that any Branch which straddled
boundaries and incurred extra expense could submit a claim, he has received only one
such claim, from the Bristol Branch, which he believed reasonable and justified. He
was, therefore, arranging payment.
As reported earlier at the Meeting, he had hoped to delay any increase in subscriptions
until 1998 but, with the spend that was forthcoming on membership items, he would be (
looking closely at the accounts with the Finance Manager and General Secretary. He
anticipated a strong possibility that he might have to recommend an increase in 1997,
incorporating in it the recommendations of the P&D Committee.
He was pleased to say investments were performing well and thanked the Trustees for
the prompt and efficient way they acted on the recommendations of the broker. He .
also thanked Officers for their efforts in keeping their expenses under control. He
advised he would be away on leave from 1-11 November.
The Treasurer’s Report was accepted.
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At the Sub Post Office Exhibition in Edinburgh 3 new products had been launched.
Discussions had been held with Tpic (Technology plc), a subsidiary of ICL, and was a
logistic company in electronic products. That company was due to open a new
warehouse in the Spring of 1997 when 60,000 products would be available. They
were to produce a catalogue of NFSP business services, items would mainly be in the
computer field. It had been hoped to have the catalogue available at Edinburgh but
there had been difficulties in print production.
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The NFSP Trading Company Report was ACCEPTED.
AM3 EXECUTIVE OFFICER'S REPORTS
There were no Reports.
A/l4- MATTERS RECEIVED TOO LATE FOR INCLUSION ON AGENDA I
There were no matters.
AMS ANY OTHER BUSINESS
ELAINE AUSTIN}
GILLPAYNE
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