UK Mail union gears to oppose sell-off

The largest union for Royal Mail workers yesterday began its annual conference with a promise to fight attempts to privatise the national postal operator and threatened to break links with Labour if the government sold any of its stake.

The Communication Workers Union, which represents 160,000 of Royal Mail’s 200,000 staff, is concerned about plans for a John Lewis-style partial privatisation of Royal Mail, which is being touted by the operator’s management.

It supported Labour in the general election after winning a manifesto commitment to keep Royal Mail “publicly owned”, but now fears it has been betrayed by senior ministers.

Billy Hayes, CWU general secretary, said: “We will fight any attempt to sell off or screw up Royal Mail. The CWU values our link to the Labour party . . . but I have no illusions about how that link will crumble if the government breaks its promise.”

He also criticised Allan Leighton, Royal Mail’s chairman, and other executives, who want the government to sell part of its 100 per cent shareholding to Royal Mail, which would become an employee-owned trust.

Supporters of this scheme claim it would encourage greater ownership of the organisation by staff, who would receive dividends on any profits made, while the trust structure would prevent Royal Mail being sold to a third party.

Dave Ward, CWU deputy general secretary, said it was imperative the government introduced its review of the Postal Services Act and competition within the industry quickly.

The market will be fully liberalised from January next year, and Royal Mail’s ability to compete has been hamstrung by unfair burdens placed on it by the regulator, said Mr Ward.

Postcomm announced last week plans to restrict the price of stamps and further regulate Royal Mail. Competitors were not regulated and could charge what they pleased, Mr Ward added.