Postal union `Set to ballot for action in jobs row'

Postal workers’ leaders were today expected to give the go-ahead for a national ballot on industrial action in a row over jobs.

Delegates at the annual conference of the Communication Workers Union in Blackpool were set to approve a timetable for a ballot of the union’s 180,000 members in postal group Consignia.

The union fears that the pay, conditions and pensions of thousands of engineers and cleaners will be hit by plans to set up a new joint venture company.

Consignia is proposing the move as part of cost savings to reduce its record losses.

A union spokesman said today that the planned joint venture between Consignia and building giant Balfour Beattie was the “start of privatisation”.

Around 5,000 cleaners and 2,000 engineers would be transferred to the new company under the proposal.

GUARDIAN 25th June 2002
CITY BRIEFING: CONSIGNIA FACES STRIKE THREAT
Consignia could be hit by industrial action over plans to transfer 5,000 jobs at its buildings maintenance subsidiary, Romec, to a new joint venture company.

The Communication Workers Union, which views the outsourcing as a form of privatisation, yesterday approved plans to hold a strike ballot among 180,000 members because of concerns over pensions and redundancy terms.

Consignia said the move would damage customer confidence and cause anxiety among employees.

“We have given the unions assurances on pensions, job security and union recognition and, given the perilous financial position, even the threat of industrial action is very regrettable,” said a spokesman for the group.

Consignia, which ran up a loss of pounds 1.1bn last year, is seeking to outsource some non-core operations as part of a sweeping programme to cut annual costs by pounds 1.4bn by April 2005.

Among the proposals are plans to transfer Romec to a new joint venture company with the Balfour Beatty offshoot, Haden Building Management. The new firm will provide day-to-day maintenance for Consignia’s 3,000 buildings under a pounds 1bn seven-year contract.

Copyright 2002 The Guardian.