Split inside postal union holds up agreement over job losses

A split at the top of the postal workers’ union yesterday prevented it from endorsing a deal negotiated with Consignia aimed at avoiding compulsory job losses.

Some on the postal executive of the Communication Workers’ union are demanding stronger commitments on pay before supporting a package based on voluntary redundancies, which would make a national strike less likely.

The union leadership had hoped that the job security deal, negotiated after three months of talks between senior officials and Consignia, would be backed by the executive yesterday. The CWU confirmed that the two sides were to return to mediation to resolve renewed disagreement over a pay settlement.

The executive is due to look again at the overall package next week. Some on the executive also questioned claims by senior officials that job losses would be voluntary and the deal was not put to the vote.

The issues of pay and jobs have become intertwined as Consignia seeks to push through 30,000 redundancies over the next three years. Mounting losses and the threat of new competition have forced managers into a radical overhaul, but the union is threatening strikes if employees are sacked.

Under the terms of the 30-page document drawn up with Consignia, employees of the former Post Office would be offered voluntary redundancy and alternative jobs across the company.

CWU officials have claimed that pay would also be protected for workers who relocated or moved to lower grades. However, the union declined to publish details of the proposed agreement.

A dispute with Consignia over changes to delivery times affected the pay settlement and had to be resolved as part of the package, officials said.

Consignia said the redundancy package on offer was fair. A spokeswoman said: “We’re committed to consulting with the union on the way we handle surplus staff. We’ve put forward a fair package and we look forward to the union’s response.”

She confirmed that redeployment to other jobs available across the former Post Office was the “first option” given to affected workers.

It is understood the package would cost Consignia about Pounds 400m in redundancy and relocation expenses.

* The cost of sending airmail letters outside Europe is to increase by almost 5 per cent from July, the Royal Mail said. Posting a 20g airmail letter will increase by 3p to 68p, and for a larger packet from Pounds 1.15 to Pounds 1.20. Prices for services to Europe will remain unchanged.