Regulation

Union issues UK postal privatisation warning

Wednesday, June 8th, 2011

The Communication Workers Union (CWU) has warned that postal services in the UK face an “uncertain future”.

The admission was made on the eve of the Postal Services Bill returning to parliament tomorrow (Thursday).

MPs will vote on amendments to the Bill in the final parliamentary stage before Royal Assent.

As well as allowing private investment into Royal Mail, the Bill outlines that Post Office Ltd could move to a mutual ownership model, Ofcom will become the regulator to the UK postal industry, and the government will take on Royal Mail Group’s pension deficit.

But CWU general secretary Billy Hayes (pictured) warns that privatisation could lead to the closure of thousands of post office branches.

“The UK’s postal services face an uncertain future because of the government’s Bill. Without strong guarantees the post office network could be stripped of a third of its income when Royal Mail is privatised leading to thousands of closures.

“The new law means the Universal Service, six days a week one-price-goes-anywhere, could be downgraded in just four years and we fear that consumers will see massive price hikes. Privatisation has lead to a three-day a week rural service in the Netherlands and postage costs twice as high as ours in Germany.

Hayes says thousands of branches could close

“Royal Mail is already under huge pressure from the government to slim down and appear attractive to a private buyer. There’s no evidence that a buyer exists and this uncertainty is very stressful for postal workers.

“Regardless of who buys this business, the CWU will still be representing the interests of postal workers. We will be fighting for jobs and services for the long-term as we are not governed by the short term profit motives of ‘spivs and gamblers’, in the Cabinet or elsewhere.”

A poll of subpostmasters on behalf of the CWU published last month showed 92% thought their post office was either very unlikely or unlikely to survive without mail business provided by Royal Mail. Less than 1% said they would be very likely to survive.

Earlier this week, Post&Parcel reported that Royal Mail could slash up to 40,000 jobs by 2016.

Source: Post&Parcel

Tags: , , , , , ,

Leave a Comment

You must be logged in to post a comment.

P&P News Sign-up (Help)

 Daily newsletter  Weekly newsletter

Jobs RSS Job of the week

Marketing Manager

South East, United-Kingdom
Salary: 45,000 - 60,000 GBP per annum

Advertise with us

Advertise with us
We provide brands with an exciting range of advertising opportunities to reach the influential Post & Parcel audience. With campaigns suitable for every budget you can achieve your marketing objectives with Post & Parcel.

Find out more

New Directory Members

JCtrans.net

JCtrans is the most famous domestic logistics integrated portal in China. Relying on electronic commerce and web-based platforms, JCtrans takes advantage of e-market, accounts settlements on line, logistics and finance on line, and credit systems, which are a series of diversified online services to integrate resources for logistics and trade areas domestically and overseas.

About Post & Parcel

Post & Parcel is your key to the global mail and express industry. Every week Post & Parcel features the latest news, analysis of trends, insightful viewpoints, top jobs and exclusive interviews with leading industry experts.


Find out more