Postal union takes tough stance over threat to jobs

The postal workers’ union has warned it will stop at nothing to prevent compulsory redundancies as Consignia embarks today on a restructuring expected to lead to thousands of job losses.

Billy Hayes, the Liverpudlian leftwinger in charge of the Communication Workers’ Union, pledged he would not allow his members to be axed. In an interview with the Financial Times, he also attacked proposals by PostComm, the regulator, for a rapid liberalisation of the sector and warned Labour that the CWU was rethinking funding of the party.

“We’ve never countenanced people being sacked to restructure the industry and we would resist that by any means necessary,” said Mr Hayes. Although the first redundancies to be announced today are voluntary, the next stage – involving the Royal Mail division – could include compulsory job losses.

Though he stopped short of threatening strikes, Mr Hayes’ remarks will raise fears in government of a prolonged battle over reform peppered with industrial action.

Union officers are expected to hold a token 15-minute stoppage this week to keep the result of a ballot backing strike action valid. Following a dispute over pay, talks between the unions and Consignia over restructuring had been “cordial”.

However, if the company even hints at compulsory job losses today, the fragile peace could quickly disintegrate.

Mr Hayes accused PostComm of attacking Consignia’s financial base. “We’re saying to them, ‘Don’t plunge the dagger, or you’ll kill the patient’,” he said.

Legally, the union is forbidden from from taking industrial action for political reasons. To settle its differences with PostComm and the government, Mr Hayes advocated political pressure.

“We believe in the power of persuasion. It didn’t take strike action to convince the Conservative government to drop privatisation, it took political argument.”

PostComm’s plans are under review after an outcry from Consignia, consumer groups and unions. It wants to liberalise the postal sector by 2006 and open up 30 per cent of Consignia’s revenue base within weeks.

Mr Hayes said the PostComm proposals were flawed. “It is a leap of faith on their part,” he said. “If the proposals are largely unchanged, there will be real problems in the post office. Service to the customer will be hampered and destroyed.”

Meanwhile, Labour was at a crossroads in its relations with the unions over the vexed issue of public services, said Mr Hayes.

“A fault line is developing. The Barcelona summit was a real worry for us. We’d much sooner see a Jospin-Schroder axis with Blair than a Berlusconi-Aznar one.”

CWU members were so concerned about the direction Mr Blair was taking Labour that there was a question mark over its links with the party.

One option was to redirect political donations to the union’s campaign against the postal regulator.

Labour affiliation and support for MPs would continue, Mr Hayes said, but he added: “Money over and above that we want to use more effectively.”