Tag: Royal Mail

Postal strikes 'threatening small firms'

Small firms are being caught in the crossfire in the row over jobs and pay at Royal Mail, a leading business group has warned.

The Federation of Small Businesses said strikes by postal workers were putting jobs at risk and urged the Government to intervene to end the dispute.

Last night, members of the Communication Workers Union launched a fresh wave of industrial action, which will be staggered over the next two weeks. The union said the aim was to hit Royal Mail hard at minimal cost to its members.
But FSB spokesman Matthew Knowles said: ‘Our research has found 94 per cent of small firms use the Royal Mail exclusively because the other mail providers do not see small businesses as lucrative,’ he added. The cost for small businesses of mail being delayed has been estimated at £2.5m for each postal strike.

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Royal Mail: Business as Usual

According to Royal Mail’s payroll figures, 80 per cent of Royal Mail’s workforce was working as normal last Friday (26th July) and collections and deliveries are taking place as usual throughout the UK.

12 mail centres – the large sites where mail is processed before being sent to delivery offices – are working normally throughout today, including sites in Belfast, Southend, Liverpool, Carlisle, Peterborough, Glasgow, Hull, Aberdeen, Gloucester, Portsmouth, Crewe and Gatwick. Large numbers of colleagues have also reported to work at the remaining 59 centres and are working alongside management volunteers. No mail centers are expected to be closed.

A spokesman for Royal Mail said:” We are grateful to everyone who has chosen to work as normal and to get the mail to our customers as quickly as possible in spite of the Communication Workers Union call for industrial action.”

“The union’s publicly stated aim of causing maximum damage to Royal Mail, and therefore its customers, is completely at odds with its claim to support the postal service. Strike action will inevitably drive customers away from Royal Mail to rival operators and to the internet.”

Royal Mail says it remains “ready to meet the union leadership yet again at any time to explain its position and the tough reality of the completely open marketplace in which we now operate.”

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Start of Royal Mail strike looms

A two-week campaign of staggered strike action throughout Royal Mail is set to begin at 1900 BST.

Each division within the firm has been allocated a different day to strike, in a move designed to cause continuous disruption throughout the period.

Union members are protesting over pay and job losses which they say will come from the modernization of the firm.

Royal Mail says the changes are needed for it to stay competitive and vowed to keep delivering mail during the action.

The first action will see staff at Post Offices and Royal Mail sorting offices walk out in a 24-hour strike.

Royal Mail called the Communication Workers Union’s (CWU) decision “hugely disappointing”, but said it could not change its position. It also said it would have contingency arrangements in place.

The strikes will see each section of the company, from the sorting and collection centers to those who make the deliveries, walking out for two separate 24-hour strikes over two weeks.

The move is designed to cause continuous disruption to the nation’s postal service throughout the period at a “minimum cost” to CWU members, union officials say.

The union says the action reflects its growing frustration with the Royal Mail for its failure to take worker demands for job protection and increased pay “seriously”.

The CWU fears 40,000 jobs will go as a result of increased mechanizations of the system. It is also objecting to a 2.5 pct pay offer.

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EC gets tough on Royal Mail's VAT exemption

Royal Mail, reeling from a series of strikes by postal workers over pay and working practices, suffered a fresh blow on Tuesday when the European commission stepped up its threat to take the government to court over its decision to exempt all the former monopoly operator’s services from VAT.

Laszlo Kovacs, EU tax and customs commissioner, formally requested the government to amend UK legislation allowing Royal Mail to charge zero VAT on high-value bulk mail and commercial deliveries for which rivals must pay the standard rate of 17.5 pct..

The zero rate applied to stamps for normal deliveries to more than 20m British homes under the “universal service obligation” (USO) — guaranteeing one delivery a day, six days a week, to every address in the UK for the same price — would be unaffected.

The commission’s move is the second stage in the infringement procedure and could lead it to take Britain to the European court of justice, Europe’s highest court. UK laws on exemption for all Royal Mail’s services are deemed incompatible with the sixth VAT directive.

The government showed little sign of giving way to Brussels on the issue. “We are satisfied that our position is consistent with the EU VAT rules in this area, which require VAT exemption for services provided by the ‘public postal services’,” a Treasury spokesman said.

Royal Mail said it remained opposed to the imposition of VAT on its postal charges. “While the issue of VAT is a matter for the UK government, we have said that an increase in prices as a result of the imposition of VAT is the last thing we want for any of our customers, particularly charities and small businesses.”

A spokesperson for TNT Post, one of Royal Mail’s rivals, said: “This action supports our view that the VAT distortion needs to be removed.”

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Work 5 years longer or your pension is cut

Royal Mail workers will have their pensions slashed unless they work five years longer under secret plans revealed by the Mirror today.

The move would cost staff members thousands of pounds a year. Some could see their retirement pay halved.

In addition the posties’ final salary scheme would be closed to new members from next year.

Last night, on the eve of two weeks of pay strikes, union leaders vowed to fight the “hammer blow” proposals.

Dave Ward, deputy general secretary of the Communication Workers Union, said: “This is a savage attack on pay and conditions.

“Our members aren’t going to roll over and accept this. It will only galvanise support for strike action.”

The radical plans – which would hit workers at Royal Mail, Post Office and Parcelforce Worldwide – are in a 24 page document leaked to the Mirror.

They are designed to tackle a GBP 6billion shortfall in the pension fund by saving GBP 1.5billion over five years.

The age staff could retire with full pensions would be raised from 60 to 62 next year and 65 from 2010.

Future rises in pensionable pay would be capped at the inflation rate.

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