Unions fear UK Royal Mail could loose 40,000 jobs to cut costs
Royal Mail is to begin a fresh round of cost-cutting that unions fear may trigger 40,000 job losses and a huge switch from full-time to part-time work, citing a Royal Mail spokesman, The Times reported.
The plans could spark industrial unrest with the Communication Workers Union (CWU), especially because the two sides have just begun pay talks in which the union is seeking a 25 pct rise, the newspaper said. It wants to bring postal pay in line with the national average.
A spokesman for Royal Mail told The Times that it was looking at job cuts and more use of part-time staff, but would not comment on the size of the plans. He said that automation would cut the need for labour and that competition meant that Royal Mail’s workload would be less. ‘It is too soon to speculate on the size of Royal Mail, but it is no secret that we intend to be more efficient and flexible than our competitors,’ he told The Times.
The move comes as senior government sources have also disclosed that Royal Mail has yet to make a formal detailed request for financial help, despite calling publicly for 2 bln stg, the newspaper added.
Barry Gardiner, the minister responsible for Royal Mail, is believed to be surprised that no business plan has yet been produced, The Times said.
