Postal union vows to fight redundancies

By Dan Roberts, Industrial Editor, FT.com site
Published: Aug 04, 2003

Royal Mail has warned that its plan to turn around the loss-making postal service could collapse after it emerged that union leaders were now resisting a key aspect of reform.

The Communication Workers Union plans to ballot members on strike action next week after rejecting a 14.5 per cent pay deal tied to shift changes and productivity targets.

But a statement confirming the ballot plan on Monday also revealed that the union would not accept wider proposals to reduce the 200,000-strong workforce with 30,000 voluntary redundancies.

"We will not do this," said Dave Ward, the union's postal deputy general secretary. "It would be signing the death warrant for the entire postal service."

John Keggie, Mr Ward's predecessor, had previously focused on extracting assurances that none of the job cuts would be compulsory, but the CWU is thought to be taking a tougher line after opposition to this earlier period of co-operation dominated its June annual conference.

Royal Mail claimed Monday's statement was an "earthshattering" u-turn, given that one third of the cuts had already been implemented without opposition.

"I was gobsmacked to see their opposition to job cuts since we have negotiated not one but two versions of the redundancy package, which were agreed by the union executive," said one senior executive.

Royal Mail hopes to cut losses - currently running at £750,000 a day - by ending the second daily delivery shift. It predicts this will allow headcount to fall by a further 17,000.

Additional reporting by David Turner