Royal Mail may hire rivals

ROYAL MAIL is planning to use potential rival operators for deliveries
that are hit by strike action. Rival operators are likely to include Hays, the logistics and
delivery company which already has a provisional licence to operate, and
groups such as DHL and Securicor. However, although such companies may want secure, guaranteed postal
work, some industry sources are sceptical as to whether they would want to
take on controversial “firefighting” work in the event of a strike. Post Office sources say that the organisation would ask new
competitors to help with deliveries in order to minimise disruption from
industrial action. Last week an independent review of industrial relations in Royal Mail
said that the organisation was close to collapse because of appalling working
arrangements. Some senior directors of Consignia, Royal Mail’s holding company,
believe that a defining showdown with the powerful postal workers’ union is
necessary to combat the constant outbreaks of unrest. However, there is also a recognition that provoking a serious clash
could backfire. Last week Consignia was forced to capitulate on plans to
rescind a pledge to have no compulsory redundancies and plans to end sick pay
benefits for the first two years of service after the Communication Workers
Union began steps to ballot on an all-out strike. (c) Times Newspapers Ltd, 2001THE TIMES, 30th July 2001