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War of words as post strikes resume

Updated on 29 October 2009

By Channel 4 News

Postal unions and management are blaming each other for the latest failure of talks, as the second rolling strike gets underway.

Royal Mail strike (credit:Reuters)

The head of the Communication Workers Union warned there was "every prospect" that industrial action will now be stepped up after talks with Royal Mail managers broke down.

The postal workers are taking industrial action over management proposals they say would cost 60 thousand jobs.

Thousands of members of the Communication Workers Union (CWU) walked out from 4am, causing huge disruption to mail deliveries.

The strike went ahead after the failure of three days of intensive talks between union leaders and Royal Mail bosses, under the chairmanship of TUC general secretary Brendan Barber.

A war of words erupted as the Royal Mail accused the union of walking away from the talks and "playing havoc" with customer confidence.

But deputy general secretary of the Communication Workers Union (CWU) Dave Ward dismissed claims that the union made fresh demands in talks yesterday morning as "complete nonsense". He said: "The proposal that we tabled yesterday was in line with the progress that we had made in negotiations.

"If that is not true, our challenge to Royal Mail is why didn't they reject it outright? They waited eight hours and at this point in time we still don't know whether they accept it or not."

Around 43,700 workers across the UK in mail centres, delivery network logistic drivers and garage staff are on strike for 24 hours from 4am today, 400 workers in Plymouth, Stockport and Stoke who redirect badly addressed mail will walk out tomorrow, and 77,000 delivery and collection staff will take action on Saturday.

Further strikes could be called by the union unless the deadlocked row over jobs, pay and modernisation is broken.


Small business effect
Further industrial action over the Royal Mail dispute could cost small businesses thousands of pounds, according to their federation.

A survey of their members says that nearly half of businesses believe they will loose between £500 and £5,000. Forty two percent predict they will lose trade in the build-up to Christmas and 40 percent say their reputation will be damaged because of failure to deliver goods. It also says half of businesses are considering leaving Royal Mail.

Stephen Alambritis from the Federation of Small Businesses, said the strike was "very serious" for Britain's four million small businesses.

He told Channel 4 News at Noon: "Seventy per cent of all businesses rely on this monopoly that they like because it provides that universal service obligation, and they do want it going back to work as normal.

"The vast majority are very fearful, as we run up into Christmas, for Christmas trade and four in 10 are saying that they will lose trade if this continues."

He said once businesses start using other delivery services, they "stay gone".

"That's the danger for both the Royal Mail and the postal workers, which is why they need to go back to work," he said.

"Habits will stay, the business will build in the extra costs and it's very difficult to go back to the Royal Mail. "Fifty per cent of our members are saying they're very tempted to leave the Royal Mail, but there is those difficulties of meeting their needs and the actual cost.

"But there is this danger of getting a member of staff to look into electronic invoicing, electronic payment systems and once that's locked in, it may be that the Royal Mail is the loser at the end of the day."

He said the government should have intervened earlier because of the "aggressive management style" of the Royal Mail.

"Small businesses have been at the brunt of that with size-based pricing and having to pay for first class delivery in the mornings for £3,000 if you want to guarantee your delivery as a small business.

"Royal Mail management have been aggressive as well with business, so this needed Lord Mandelson to get in from early days and call in ACAS."

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