"Postcomm plans threaten 10,000 jobs in Royal Mail" says Amicus

The Communication Managers Association (CMA) section of Amicus, Britain’s largest private sector union, has today said that the price control proposals announced by the Postcomm postal regulator could mean up to 10,000 redundancies for Royal Mail over and above the 30,000 previously announced and threaten the future financial viability of the company.

The union:

– Welcomes the proposals to increase stamp prices by 1p from April 2003

– Supports the stronger quality standards proposed in the interests of its 1.1m members and consumers generally

– Condemns the proposed price control mechanisms which as currently framed would introduce additional restrictions on commercial freedom and could cost Royal Mail an additional #500m.

Peter Skyte, CMA National Secretary, said:

“Whilst we welcome the proposed increase in stamp prices to give Royal Mail a financial breathing space, the price controls proposed will not merely squeeze but strangle the company during its 3 year recovery period. They can only lead to the prospect of further substantial job losses, act as a disincentive to innovation and imperil the future financial viability of the company.”