The Postal Operator formerly known as Royal Mail (UK)
Following an overwhelming rejection of pension reform by staff at Royal Mail earlier this year, and rumour that the government may be considering selling off parts of the business in an attempt to rescue what many now regard as a failed deregulation plan, some inside the union say that the Communication Workers Union is preparing for a full confrontation with Gordon Brown. Timing may be factor here though.
Next week is of course the CWU Conference, and those jostling for a better position within the union will be far more vocal than they might otherwise be, with stirring speeches aimed at raising the profile of branch leaders and just about anyone interested in pushing Hayes off the top of the heap. The more militant end of Royal Mail's workforce, notably from Liverpool, were furious that having brought Britain's postal network to a standstill, Hayes was asking union members to accept most of the proposals put forward by Royal Mail bosses and return to work. With it being conference week, CWU leader Billy Hayes is expected to deliver more fighting talk to demonstrate that he still has the strength of character to remain in the job, but not everyone thinks he has. Some are even threatening to turn up at the conference and tell Hayes what they really think of him.
On the other side of the coin, the Labour party depends rather heavily on union money and already effectively bankrupt, the union is likely to push the Labour party against the ropes to try and scupper attempts to part-privatise Royal Mail.
Trying to establish just how much of Royal Mail's downturn in business is due to the rise in email use, increased competition, or lack of confidence in the wake of strike action, isn't easy, but postal deregulaton has undoubtedly made things worse. An independent review this year, in combination with input from Postcomm, Postwatch, and rival operators, made it clear that deregulation was having little impact in terms of increased quality and choice for small business and consumers and the prospect of postal companies fighting it out on deliveries is practically zilch.
Rather than unwind a series of badly placed knots, many experts predict that the government will opt to cut itself loose from Royal Mail altogether and sell parts of Royal Mail to the private sector in an effort to stabilise the business. The CWU maintain that Royal Mail is being badly served by Chief Executive Adam Crozier and that he is being grossly overpaid for letting the service run down rather than improving or developing it.
In any event, privatisation is a step too far for the CWU who accuses the government of going back on pledges to keep Royal Mail in the public sector and of allowing the postal network to deteriorate through sheer incompetence.
PM Gordon Brown has plenty of problems already and with little confidence in his leadership either from his own party or the electorate, and a massive credit crisis, a concerted effort from trade unions could spell disaster for the government and Labour finances. Many argue that the UK was far too quick to take on postal liberalisation without looking properly at the effect it would have on even basic postal services. The post office network even now, is far too centered around Royal Mail's own business at a time when it should be, if deregulation is to continue, concentrating on developing these access points to encompass all postal operators.
Next week is likely to be an interesting one, not only for the future of Royal Mail, but whether Hayes or Crozier will hold onto their seats in the long run. The drive to privatise elements of Royal Mail operations continues and it may be only a matter of time before it is rebranded as "The postal operator formerly known as Royal Mail".
