Union serves Post Office strike notice in UK

Post Office staff in the UK could strike after a ballot notice was served by the Communication Workers Union (CWU) today. The ballot would represent more than 4,000 staff at crown offices across the UK in a dispute over pay, job security and the future of the post office network.

As the CWU announced its decision, a union official stated that the Post Office’s current approach spells “disaster”.

Post Office Limited (POL) has urged the CWU to withdraw the notification, stating that it is “disappointed” with the decision.

The CWU said that despite increased profits of £72m last year, POL has “pleaded poverty and is refusing to consider a pay rise for counter staff”.

Union officials also claim that during this time POL has awarded a pay rise to managers and increased directors’ remuneration by 21% (worth £3.9m in 2009-10).

The union also said it was concerned that it had not received a guarantee on the number of post office branches that will remain in operation.

Dave Ward, CWU deputy general secretary, said: “POL’s attitude is about driving a race to the bottom on terms and conditions for staff and further downsizing the post office network.

“The company has no vision – and worse still appears to have no desire – to give staff a fair and just pay settlement or to work towards a sustainable post office network. Their approach spells disaster for Post Office employees and will further wreck the services that communities rely on.

“We have written to Royal Mail chief executive Moya Greene today making it clear that we remain available for talks to resolve this dispute.”

Leading the negotiations with POL is Andy Furey, the CWU’s assistant secretary. Unless an agreement has been reached, ballot papers will be dispatched next Friday (18 February) with a closing date penciled in for 4 March.

Furey said: “The Post Office is showing callous indifference to the work and living standards of hard-working counter staff while at the same time increasing pay for managers and directors. It is double standards and fat-cat economics in the extreme.

“POL has opportunistically seized on creative accounting results to plead poverty and avoid a pay rise for staff. But the £72m profits and pay-outs for managers and directors show that the company can afford a pay rise for staff that have now gone two years without a rise.

“POL is being deliberately provocative by saying our members are overpaid compared with staff in privately run sub-post offices and franchises. The reality is that these workers are disgracefully exploited with pay rates barely above minimum wage. The refusal to guarantee the crown network is more evidence of a damaging race to the bottom which we have no desire to engage with.”

In response, POL said it was “disappointed at the CWU’s plans for an industrial action”. Managing director Paula Vennells urged the union to withdraw its ballot notification.

She said: “The Crown Post Office network is losing £55m a year. We regret the fact that the CWU is unwilling to engage in a constructive dialogue about tackling this unsustainable financial position.

“We know having no pay increase is a very difficult message for our staff. The unfortunate reality, however, is that the Crown Post Office network is loss-making. Right across the country, difficult choices are being made by many public and private sector organisations and we are no different.

“Any form of industrial action will only harm our customers and do nothing to resolve the urgent need to reverse the losses in the Crown network.”

POL claims that the first half of the current financial year (2010-11) saw a drop of £28m in company revenues, compared to the same period a year earlier.

Without the £150m annual government subsidy to support loss-making smaller branches, the Post Office would have recorded an operating loss last financial year, POL said.

Under the terms of the Postal Services Bill – passed by MPs earlier this year – POL will be turned into a mutual body – giving power to staff, subpostmasters and communities.

The government stressed that the company will become separate business to Royal Mail, and will not be sold.

In October, the government pledged to splash £1.3bn to protect the Post Office network. The fund will aid modernisation and improve services, the Business Department said.