UK Postal Workers Reject National Strike

The threat of the first national mail strike for seven years evaporated last night after postal workers narrowly rejected calls to take industrial action over pay. In an embarrassing reverse for union leaders, members of the communication workers union (CWU) voted by a majority of fewer than 2,000 against staging a series of walkouts. The outcome of the national ballot surprised and delighted Royal Mail executives who had warned that the troubled state-owned organisation faced losses of £20m a day if the strikes went ahead. But the company, which is looking to shed up to 30,000 jobs as part of a three-year recovery programme, still faces the prospect of industrial unrest in London after postal workers in the capital gave strong backing for strike action in a separate dispute over the London weighting allowance. The Royal Mail’s chief executive, Adam Crozier, hailed the outcome of the national ballot as “a result for common sense” that gave everyone the opportunity to focus on completing the company’s turnaround. “There is no crowing here,” he said last night. Royal Mail claims its pay offer is worth 14.5% over 18 months. But CWU leaders claimed the offer had “more strings than the philharmonic” and had expected overwhelming support from the union’s 160,000 postal workers. In the event, members voted by 48,038 to 46,391 against action in a 59% turnout. The CWU said in a statement last night that the result was disappointing news, but it warned Royal Mail not to view a majority of less than 1% as a mandate for “massive job losses” across the industry. “There is no agreed process to deal with major change in the industry but the union remains committed to reaching a national settlement with Royal Mail which deals with all aspects of the challenges that face the industry and our members,” the statement added. Royal Mail, which reported a pre-tax loss of £611m last year, is offering workers a 3% upfront rise from October with a further 10% by Christmas dependent on proposed efficiency gains at delivery and sorting offices. Productivity improvements being looked for include dropping the costly second delivery. A further 1.5% is payable from next April. The CWU had been pressing for an 8% upfront rise after rejecting the productivity linked package on offer. CWU leaders including the general secretary, Billy Hayes, and deputy leader, Dave Ward, architect of the union’s industrial strategy, were meeting last night to discuss the ballot results. The union’s executive will meet over the next few days to consider what action to take in London but negotiators are meanwhile expected to resume talks with Royal Mail today to reach agreement on the national deal. Mr Crozier said that the company believed the 14.5% offer would give postal workers a fair weekly wage and offer customers the best prospects for long-term stability. “Our overriding priority is to move forward and get the money into people’s pockets.” He warned that a strike in London – where workers are being offered a £300 rise – would be damaging to customer confidence in Royal Mail. Contingency plans were in place to ensure that mail was kept safely and delays minimised.