Tag: Royal Mail

The Royal Mail is set to unveil a surge in profits to pounds 600m later this month, but is in danger of being overtaken by a row over pay after unions turned down its latest offer. The Communication Workers Union has rejected a proposed 2.9 per cent pay increase and is seeking further talks with chief executive Adam Crozier. The CWU’s deputy general secretary, Dave Ward, said wages needed to be brought into line with the national average, which 2.9 per cent would not do. “We know it’s not going to happen overnight, but as a starting point it’s not enough.” But the state-owned group says it will not up “its very good offer”. A Royal Mail spokesman said: “It’s clearly above inflation and it comes against a backdrop of increasing competitive pressure on the business. In that context it’s a very good offer and a final offer. This is what we can afford.”

Political controversy over the future of the Royal Mail continued yesterday as the Liberal Democrats called on the Government to turn down the organisation’s request for Pounds 2 billion of investment. The Treasury is considering the appeal, which is linked to a controversial employee share ownership scheme backed by the Department of Trade and Industry. But Ed Davey, Liberal Democrat trade and industry spokesman, said: “Royal Mail is in financial crisis, but a taxpayer bailout is not the solution.” The Liberal Democrats want Royal Mail to be part-privatised, with the proceeds pumped back into investment in new equipment.

Allan Leighton, chairman of Royal Mail, was called “an out-of-control public servant” by the main postal union yesterday, after he sent a letter to all staff promoting the merits of employee share ownership. Billy Hayes, the general secretary of the Communication Workers’ Union (CWU), said: “We’re now finding ourselves in a crazy situation where an out-of control public servant who was appointed by the Government to run a public company is pressurising that same Government to effectively privatise the public service. He has no authority to do this.”