UK Postmen may deliver strike next month
The first national postal strike in more than ten years could cripple services as early as next month as the Communication Workers Union prepares to mount a strike ballot this week.
The union’s postal executive is expected to ratify a strike ballot later today or tomorrow as it meets to discuss Royal Mail’s plans for a pay freeze with only lump sums of Pounds 600 available if employees change their ways of working.
The last time that a strike ballot was mounted, the Communication Workers Union (CWU) narrowly lost a vote in favour. However, then Royal Mail had offered a 14 per cent pay increase over three years.
A strike at Royal Mail would come as the group is preparing to announce a large fall in profits for the year to the end of March. Its interim profits fell 86 per cent to Pounds 22 million and the organisation has lost more business since then.
Industrial action could also put Royal Mail on a collision course with the industry regulator if a strike causes problems for rival operators and if it is thought that Royal Mail could have averted disruption. Royal Mail’s rivals tend to use the postal organisation for the final-mile delivery of the mail that they handle because they need its infrastructure. They could try to seek damages against the organisation if their services are disrupted because of a strike at Royal Mail.
Royal Mail has set out a 22-point plan to reduce costs by Pounds 350 million this year as it struggles to improve its productivity. The company is investing more than Pounds 1 billion in automation and is expected to cut up to 30 per cent of jobs -nearly 50,000 -when new equipment is installed. Its investment is coming from a Pounds 3.9 billion rescue package from the Government that was agreed in February.
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