Tag: UK

The Royal Mail has turned down the offer of further talks to avert the first national postal strike for seven years, after rebutting a claim by the main postal workers’ union, the CWU, that it had exaggerated financial losses to justify shedding 30,000 jobs and limiting pay increases for 160,000 staff.

Dave Ward, the CWU deputy leader, alleged that the company’s annual accounts, showing a pre-tax loss of GBP611m, included a GBP470m exceptional charge for the cost of redundancies; but only 2,000 jobs at most had gone, compared with the 16,000 claimed by Royal Mail. The core letters business had made a GBP66m profit.

Mr Ward, who is organising the strike ballot due to end on September 17, suggested that the real financial gap between the company and the union, which is claiming an upfront 8% pay rise, could be bridged, and urged the Commons trade and industry committee to order an immediate inquiry into the group’s accounts.

The Royal Mail has been accused of exaggerating its losses to justify plans to make 30,000 workers redundant.

Dave Ward, the deputy general secretary of the Communication Workers Union (CWU), said the organisation was underplaying its profitability because it also wanted to minimise an “upfront” pay rise. The union is calling for a parliamentary inquiry.

A ballot of 160,000 postal workers is expected to show next week a big majority in favour of industrial action.

Mr Ward said that although the company’s overall losses were GBP611m this year, the “core” letters business recorded a profit of GBP66m.

The Communications Workers Union (CWU) has called for the Trade and Industry Select committee to open an investigation into the true financial situation at Royal Mail but added it is prepared to talk to management ahead of a planned strike on pay.

CWU general secretary David Ward said his members believed Royal Mail, which owns the Post Office, is exaggerating the seriousness of the company’s financial position.

“The Post Office’s financial position is not as bad as they are making out,” he told a news conference at the Trades Union Congress annual conference here.

Ward challenged the Royal Mail claims that 16,000 staff had left the business when the company’s accounts for the two years to March 31 showed only 2,000 redundancies.