Gordon Brown faces union pressure to save Royal Mail from privatisation (UK)

Gordon Brown is being pressured by one of his main union backers to make a fresh commitment to safeguard the Royal Mail from privatisation or risk losing its financial support.

The Communication Workers Union (CWU), which represents postal workers employed by the state-owned operator, will vote at its annual conference next week on whether to sever its affiliation with the Labour Party.

If they vote for the move, it would spell the end of a six-figure annual funding source vital to Labour.

It would be a big blow to the party, as donations have dwindled significantly since the cash-for-honours scandal and low opinion poll ratings, and it now relies heavily on union support to cover its debts.

In the first quarter of this year, 88 per cent of the cash donations made to the party came from the unions.

To make matters worse for Labour, the CWU is not the only trade union proposing a disaffiliation motion during the conferences this summer. Similar motions are being put forward by the GMB and Unison, a sign that there is increased dissatisfaction.

Ministers are under growing pressure to consider allowing Royal Mail to raise money from outside sources. But the CWU has told the Financial Times that the commitment Labour made in its last manifesto to keep Royal Mail in public ownership was “one of our core objectives.”

When asked if the union might demand that the Prime Minister renews his pledge in Labour’s next manifesto in exchange for its continued support a CWU official answered: “Absolutely”.

Francis Maude, the shadow cabinet office minister, said: “This shows that trade union barons call the shots. Labour, who are so dependent on trade union funding, are being held over a barrel and this is extremely unhealthy for a parliamentary democracy.”

Gordon Brown is being pressured by one of his main union backers to make a fresh commitment to safeguard the Royal Mail from privatisation or risk losing its financial support.

The Communication Workers Union (CWU), which represents postal workers employed by the state-owned operator, will vote at its annual conference next week on whether to sever its affiliation with the Labour Party.

If they vote for the move, it would spell the end of a six-figure annual funding source vital to Labour.

It would be a big blow to the party, as donations have dwindled significantly since the cash-for-honours scandal and low opinion poll ratings, and it now relies heavily on union support to cover its debts.

In the first quarter of this year, 88 per cent of the cash donations made to the party came from the unions.

To make matters worse for Labour, the CWU is not the only trade union proposing a disaffiliation motion during the conferences this summer. Similar motions are being put forward by the GMB and Unison, a sign that there is increased dissatisfaction.

Ministers are under growing pressure to consider allowing Royal Mail to raise money from outside sources. But the CWU has told the Financial Times that the commitment Labour made in its last manifesto to keep Royal Mail in public ownership was “one of our core objectives.”

When asked if the union might demand that the Prime Minister renews his pledge in Labour’s next manifesto in exchange for its continued support a CWU official answered: “Absolutely”.

Francis Maude, the shadow cabinet office minister, said: “This shows that trade union barons call the shots. Labour, who are so dependent on trade union funding, are being held over a barrel and this is extremely unhealthy for a parliamentary democracy.”