London postal staff want more pay

Struggling Royal Mail is facing a new crisis after more than 30,000 postal workers in the capital launched an unofficial campaign – backed by threatened strikes – for a big increase in London weighting.

Royal Mail, which is losing £1.1m a day and faces tough talks with its regulator over price increases today and tomorrow, has made clear it will reject the claim – which has been sent personally to Allan Leighton, its chairman – and resist a threat to national pay bargaining.

The claim, drawn up by its London region, has also caused a serious split within the Communication Workers’ Union whose deputy leader, John Keggie, has labelled it “very dangerous and divisive” and a breach of union policy.

The row is exacerbating a bitter personal feud between Mr Keggie, a Scot, and Dave Ward, assistant secretary and a Londoner, who is challenging him for his post in a forthcoming ballot.

John Denton, the CWU’s London regional secretary, said the claim was for a uniform £4,000 London weighting and would add up to £2,000 to postal workers’ salaries in the capital. “There’s a feeling we are not being paid the same in real terms as people outside London,” he said. “We’re not asking to be better off than anyone else but compensated for the extra cost of living in the capital.”

Comparing postal workers to teachers, nurses and other public service employees unable to afford London prices, particularly for housing, Mr Denton said annual increases in the London “differential” linked to rises in national pay rates had simply failed to address the problem. “We don’t want to break national pay bargaining but we want to go back to a time when the case was made separately for London weighting … By breaking the link with the cost of living we have fallen behind other postal workers who can enjoy a higher standard of living.”

Mr Denton, who supports Mr Ward, insisted that the claim was not linked to the election campaign within the union but has given Mr Keggie until February 1 to submit it – or face ballots on industrial action.

Sources said the two issues were closely linked as leaked correspondence between Mr Keggie and Mr Ward underlines. One source said: “The union is at complete loggerheads on this issue.”

In a letter to his opponent, Mr Ward accuses Mr Keggie of “reckless” and “divisive” leadership and of showing no interest in the critical issue of “tailored delivery service” – Royal Mail’s plans to streamline mail delivery. To Mr Keggie’s claims of support for his promotion, Mr Ward says: “I have to say your view of friendship comes at a price I am not prepared to pay.”

In return, Mr Keggie accuses his opponent of “adventurism and opportunism” and of failing to deliver “tangible benefits or improvements in terms and conditions” during his 14 months in office.

In a separate circular to all union branches, he says of the threatened unofficial action that the London region is acting without the authority of the union’s executive or conference. “It is unfortunate that they have adopted their own course of action against the background of personal attacks and unfounded allegations about the national leadership not being serious about this issue.”

Royal Mail, which pays £3,472 inner London and £2,360 outer London differentials, says it wants all 180,000 postal staff to enjoy a basic £300 a week. Rejecting special treatment for London staff as at the expense of others, it says the claim is unaffordable.

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