Royal Mail Workers Warned Against Strike

The minister in charge of privatising Royal Mail has warned unions opposed to the plan that taking further industrial action would be "self-defeating".

This was the headline in Tuesday 20th July's Guardian.

The news item available on the Guardian news website continues:

Ed Davey also said there would be no government bailout of Royal Mail's estimated £10bn pension fund deficit without selling off the company.

"We are having to take incredibly tough decisions across the public sector," he told the Guardian. "I do not think people will believe that Royal Mail should be protected."

The Guardian has also learnt that the Treasury could force Royal Mail's new owners to hand back the £900m the government lent the company to modernise much earlier than expected. Royal Mail's annual report in May said it expected to renegotiate another debt facility when the current five year funding arrangement expires in 2014. But it is now understood the money will have to be repaid in 2014, because the government will expect any new private owners to fund modernisation themselves.

The Communication Workers' Union remains staunchly opposed to the sell-off plan and is co-ordinating a national campaign against it. It believes bringing in new private sector management and owners is likely to scupper the modernisation agreement struck between the union and Royal Mail after last year's bitter industrial dispute and to lead to renewed hostilities."

The article quotes the CWU as remaining opposed to the plan, warning that the union was in a stronger position to defeat the latest privatisation attempt than last year because it had agreed to work with Royal Mail management to modernise by bringing in new automated sorting machines and working practices.

It goes on:

"The company is not crying out for money," the CWU spokesman said. "It has the appropriate modernisation programme in place. Royal Mail has stability now for the first time for a long time. Our position is to oppose privatisation."

You can read the full article here

The CWU have responded forcefully as can be seen by the letter below sent to Ed Davy, The minister in charge of privatising Royal Mail, by the CWU's Deputy General Secretary, Dave Ward:

Dear Ed

MINISTER WARNS POSTAL UNION’S AGAINST STRIKE

I was very disappointed to read your comments in the Guardian article of 21st July.

Far from threatening strike action, the CWU has entered into a three year modernisation agreement with Royal Mail which will bring products and services to the cutting edge of delivery systems while providing a period of stability for the company and its staff.

Your comments are either ill-informed or deliberately timed to destabilise the workforce and use this as a smokescreen for the government to pursue its unpopular ideological privatisation objective. 

Talk of a Government bail out on pensions is also totally misleading.  A proper examination of the facts will show pensions can be resolved without privatisation.

We are very worried that the Government intends to raid the £24 billion worth of assets in the Royal Mail pension scheme under the pretence of ‘bailing it out’. CWU is not looking for a dispute - but if our members’ pension fund is robbed of its assets then we will respond in a decisive manner. 

In response to your article I am publishing this letter to CWU Branches and members.

I look forward to seeing you on the 3rd August, when I hope you will be able to clarify the Government’s position on CWU members’ pension entitlements.

Yours sincerely

Dave Ward
Deputy General Secretary (P)

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