Royal Mail condemns CWU strike decision

Royal Mail today condemned the decision by the Communications Workers Union to call further strikes. The decision comes after five weeks of discussions, under the auspices of the TUC and ACAS, to try to resolve the issues that lie behind the dispute. During those talks we offered both short and long term solutions, while keeping within the 2.5 pct available for pay this year but rather than accept a way forward the union tabled proposals that would cost the business GBP 2.4 billion over four years.

The company also criticized the CWU for failing during seven months of talks to produce any serious proposals that could help resolve the issues that lie between us and move the business forward.

It is clear from our discussions that the CWU leadership does not begin to understand the challenges facing Royal Mail and the very serious consequences for the business if we do not push ahead and modernize.

Instead of developing concrete and viable proposals for the business, which they have publicly committed to do, the CWU is clinging to its historic stance of promising “working groups” to discuss changes in the future for money upfront – changes which in the past have always failed to materializes. The union’s unrealistic and unreasonable demands show how the CWU leadership has again failed to understand that no change is not an option and that talking shops will not secure the future of the Royal Mail.

Royal Mail also criticized the union for misleading their members over the important issue of pensions. The union has wrongly said that we have taken “executive action” on pensions when they know the company has not yet started its official 60-day pension consultation, which will begin in the first week in October and during which we will be listening to the views of all our people and other stakeholders. Any other future operational changes recently announced by the company have been done in line with our existing agreements with the union and give the proper notice period before the change.

The call for further strikes does not change the urgent need for Royal Mail to modernize and become more flexible and efficient if it is to survive. For our people, flexibility would simply mean working the hours they are paid to work and to do what they are trained to do in a safe environment – something which has been taken for granted for many years in almost every company in the UK.

The union’s repeated refusal to contemplate the changes we must make if we are to be able to compete in an increasingly tough market simply shows that they are completely out of touch with UK industry and the reality of how competitive markets work.

We have been negotiating with the CWU over pay and flexibility since March 2007 and, as a result of the CWU decision to return to strike action, we will now begin to make the changes that we have been discussing with the union and our people for many months.

Royal Mail would like to thank both the TUC and ACAS. As ever, we remain willing to meet with the union at any time.