Private firms may replace UKs striking postmen

Private companies may be called in to deliver letters to millions of homes if a planned national postal strike goes ahead.

Postwatch, the government’s consumer watchdog for mail, is to call on Patricia Hewitt, the trade secretary, to suspend Royal Mail’s monopoly for a year if industrial action takes place as planned in the autumn.

The prospect of a year’s business is thought necessary for private companies to invest in the infrastructure to cover a strike, even if it goes on for much less than 12 months.

“We are very concerned that the dispute will result in customers being ignored,” said Peter Carr, chairman of Postwatch. “We therefore expect the secretary of state to suspend Royal Mail’s monopoly for a year. This is what we will be calling for.”

Initially, the companies are expected to deliver mail only on behalf of large groups such as banks, utility companies and local authorities sending out bills and statements to customers.

During any strike, the Royal Mail would seal its boxes and individual consumers would be unlikely to be able to post letters.

Afterwards, however, private companies may be allowed to set up their own collection points in competition with the red pillar boxes.

Last week, the Communication Workers’ Union informed Royal Mail it would begin balloting 160,000 postal workers on August 27 in a dispute over pay and conditions.

A national strike, the first by postmen in seven years, is now expected to begin in late September to coincide with the Labour party’s annual conference.

At the moment, four private companies, including Express Dairies and the Dutch postal operator, have limited licences to deliver some post – primarily parcels or mail travelling between businesses.

David Perkins, managing director of Wegener Direct Marketing, one of the country’s biggest mailing companies, said: “We would use private postal firms and we will be looking at alternatives if the strike goes ahead.”

Allan Leighton, chairman of Royal Mail, has already said that a national strike could prove disastrous to the company, which is losing £750,000 a day.

Royal Mail is offering postal workers a 14.5% pay rise over the next 18 months linked to changes in working patterns.