Post Office Union piles strike pressure on UK Royal Mail with claim of 'blatant privatisation'

PROTRACTED negotiations between Royal Mail and the union representing 160,000 of its employees come to a head later today, with the Communication Workers Union warning it will ballot members on strike action unless agreement is reached before the weekend on pay and working conditions.

The CWU and management have been in talks all week after the union backed away from an earlier threat to ballot workers last Monday. At issue is a pay deal worth up to 3.9pc and a range of other disputes including new automated sorting machinery and the transfer of some of the Royal Mail’s post offices to private sector partners.

A union spokesman said it had delayed its threatened ballot because of the talks’ progress. It is understood a basic 2.9pc pay increase for sorting office staff and postmen has been extended to cover overtime, bonuses and London weightings. In addition, Royal Mail has agreed to a further 1pc from ongoing efficiency gains.

The CWU is also worried mechanised sorting machines could cut the workload of postal staff who sort their own mailbags. “We’re concerned our members could be turned into part-timers,” a spokesman said.

Royal Mail refused to comment on the talks, which it said were being conducted behind closed doors. The union is obliged to give Royal Mail a week’s notice of its intention to ballot members.

Under chief executive Adam Crozier, a shake-up of Royal Mail has seen losses of pounds 1m a day in 2003 turned into an operating profit of pounds 355m last year, triggering a pounds 418m bonus to staff.

A new front opened up in the tense negotiations after it emerged Royal Mail has agreed to transfer six of its 500 directly owned and managed Crown post offices to WH Smith. Existing outlets will be closed and staff offered other jobs with the Post Office or voluntary redundancy. The CWU called the move “blatant privatisation”. Royal Mail has made no secret of its desire to stem Crown post offices’ pounds 50m annual losses, which it says are “not sustainable”.