Author: Archive

The Labour Party risks one of its biggest showdowns with the unions and the loss of an important source of funds if the Government announces plans to give Royal Mail workers shares in the postal group. Royal Mail expects the Government to outline plans for Pounds 2 billion of state investment and an employee share ownership scheme as early as next week, when the group publishes its financial results. Such a move could trigger the cutting of funds to Labour by the Communication Workers Union (CWU), which holds its annual conference the following week. The CWU gives more than Pounds 500,000 a year to Labour through affiliation fees and donates more for election campaigns. The union and Labour backbenchers have voiced their opposition to the employee share scheme, which they view as the first step to privatisation.

Sub-Postmasters in the Isle of Wight are considering running their own mail service, with their own stamps and franking, to try to stave off the closure of their rural post offices. They believe that 35 of the island’s 52 post offices are under threat and claim that their future may depend on declaring independence from the Royal Mail for local collections and deliveries. Rodney Archer, the secretary of the island branch of the National Federation of Sub-Postmasters, said members had voted unanimously to form their own independent business association to investigate a range of proposals to win new custom, including setting up their own collection, sorting and delivery service.