London postal strike avoided as Royal Mail reaches deal over job cuts

Postal strikes in London have been averted after Royal Mail reached a deal over job cuts with the Communication Workers Union (CWU). The agreement guarantees that Royal Mail will not make any compulsory redundancies to its workforce in London despite closing two of its seven mail centres in the capital city.

Last month, anxious CWU members voted four-to-one in favour of strike action, after Royal Mail confirmed it was to close its South London and East London centres, as a part of essential cost-cutting plans.

However, yesterday’s deal has seen the two parties agree on an operational plan, which includes the guarantee that no compulsory redundancies will be made. In addition, workers relocating to Heathrow will receive more money, and transport will be made available for staff relocating to Jubilee in Feltham. The CWU said Royal Mail has also promised a “more consensual approach taken by management when consulting and offering options to staff affected by change”.

Royal Mail confirmed that its South London and East London sites will still be shut down, with a closing date of August 2012 penciled-in for the latter. As a result, 750 jobs will be cut, with around 580 people expected to leave the company on voluntary redundancy packages – worth up to two year’s salary. A further 700 full-time employees have also expressed an interest in the package, with more than 300 of them being progressed, Royal Mail said.

Royal Mail’s regional operations director for London, Gerry O’Rourke, said: “We welcome this development. We had already made substantial progress on the essential changes to our mail processing operations in London.

“The union’s support for our plans means that both Royal Mail and the CWU can concentrate on working closely with everyone affected to ensure that colleagues get the very best support and advice through what we know is a difficult and sensitive period.”

Commenting on the news, CWU deputy general secretary Dave Ward said the new deal “puts people first”.

He added: “Negotiations have been difficult, but the agreement we have breaks new ground on job security for postal workers, which has been our key concern. These employment safeguards are amongst the very best in the UK.

“Royal Mail and the union have committed to a new joint consultation of staff in London to give them real choice over their futures. It means every existing full and part-time employee who wants to remain in Royal Mail employment can now do so. There is also more money available for people who transfer, improved job allocation procedures and better commitments on transport issues.

“It will mean two out of the seven mail centres within Greater London closing in the summer of 2012, but crucially this will now be done in a way that puts people first. It’s an important approach that will bring necessary operational change which looks after staff and customers as well as the company.”