A strike ballot of 160,000 postal workers is likely today if the union’s talks with Acas officials fail to resolve a pay dispute. Ballot papers will be sent out with results expected in mid-September unless the talks bring “radical” developments, the Communication Workers’ Union said. If industrial action is approved, it would be the first national postal strike in seven years and a blow to Allan Leighton, Royal Mail’s chairman.
Read MorePostcomm’s access proposals will put Royal Mail’s recovery at risk by forcing the company to deliver millions of letters for competitors at a loss even after all the efficiency gains set out in the company’s turnaround plan, a submission to the regulator today makes clear. The funding and pricing of the one-price-goes-anywhere mail service in the UK will unravel if the regulator’s proposals remain unchanged. In addition, those customers who aren’t targeted by new access competitors seeking profitable business mail will find themselves picking up the additional costs in the form of higher stamp prices, Royal Mail has warned.“Our position is very, very simple,” said Chairman Allan Leighton. “If we have access services they must be profitable for both Royal Mail and new competitors.”
Read MorePrivate sector postal companies are lukewarm about providing cover if there is a national postal strike, undermining a central plank of the Royal Mail’s bargaining strategy with unions.
The Royal Mail has warned the union it “will not emerge from even the threat of a ballot unscathed . . . If postmen and women walk out, customers will walk away and competitors walk in.” But the private companies claim to be lukewarm about the prospect of delivering post in the event of a strike. Four companies – Hays, TPG of the Netherlands, UK Mail and Express Dairies – hold licences to operate in the UK postal market, mostly handling business post.
Crucial talks aimed at averting the first national strike by postal workers in seven years will be held tomorrow. Leaders of the Communications Workers Union will meet Royal Mail managers at the conciliation service Acas in a bid to resolve a row over pay. The union has accused the Royal Mail of being “dishonest” by claiming that the latest offer was worth 14.5% over 18 months. The Royal Mail, which is losing GBP750,000 a day, insisted that the offer was worth 14.5% although it was linked to some productivity changes. Some of the extra money is tied to the introduction of single mail deliveries.
Read MoreInterview with Adam Crozier, Chief Executive Royal Mail
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