Royal Mail workers warned against strike

[POSTMAN]

http://www.guardian.co.uk/uk/2010/jul/2 ... ke-warning" onclick="window.open(this.href);return false;

• Opposing privatisation would be 'self-defeating' says minister
• No bailout for pension fund without sell-off to private sector

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

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.

Speaking to the Guardian, Davey, Liberal Democrat MP for Kingston and Surbiton, said new owners would have to "deal with employees fairly". He stressed that he hoped he would be able to win round the CWU, which successfully campaigned against the previous government's privatisation plan last year.

"I start off with a positive agenda to make sure there are no strikes which I hope the unions and members will respond positively to. I am hoping that because they understand that Royal Mail has financial challenges and are rather concerned about members' pensions they will recognise that what we are proposing is both sensible and frankly essential."

Under the plan employees will be offered shares in the business on a partnership model similar to John Lewis, giving them a share of profits. Last month Davey met Billy Hayes, general secretary of the CWU, and his deputy Dave Ward. Further meetings are planned.

"Many realise within Royal Mail that the last strike damaged the company," Davey said. "Any strikes now in the mail sector seem pretty self-defeating."

A CWU spokesman said the union remained opposed to the plan. He said 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.

"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."

A new postal bill is to go before Parliament in the autumn and could secure royal assent by next June, Davey said. The auction will not begin until legislation has been agreed. He said the bill would be more radical than the previous government's, and hinted that the entire government stake could be sold, as opposed to a minority stake.

[Night Tonic]

He's right though. The mere mention of a strike and they'll be rushing to fill out the paperwork for a sell off.

[BELIAL]

No bias there then

[fishtank]

He's right though. The mere mention of a strike and they'll be rushing to fill out the paperwork for a sell off.

Somebody must have mentioned strike then NT because they seem to be...........rushing to fill out the paperwork for a sell off.

[Night Tonic]

Never been in favour of privatisation and even less so with the country in the mess it is but neither you or I have any influence on that. Come to think of it, no one will listen to the CWU either - funny that.

[borders]

Never been in favour of privatisation and even less so with the country in the mess it is but neither you or I have any influence on that. Come to think of it, no one will listen to the CWU either - funny that.

"Speaking to the Guardian, Davey, Liberal Democrat MP for Kingston and Surbiton, said new owners would have to "deal with employees fairly". He stressed that he hoped he would be able to win round the CWU, which successfully campaigned against the previous government's privatisation plan last year."

care to read this paragraph again Mr NT ? however, i do believe it will be much harder this time around for the CWU to convince this Government otherwise . will the workers back strike action i dont know but it is wrong to say our Union and other Unions come to that cant have any influence on this concerted attack by the Tories.

[Night Tonic]

They can't stop it thats for sure. Watch the union keel over at the offer of shares in the same way that Lib Dems are giving in to Tory policies. Money talks, even if its not entirely real. It'll be claimed as a victory by Hayes.

[fishtank]

They can't stop it thats for sure. Watch the union keel over at the offer of shares in the same way that Lib Dems are giving in to Tory policies. Money talks, even if its not entirely real. It'll be claimed as a victory by Hayes.

I completely agree with you NT.
There will be a big fuss made...lots of tough talk like "industrial action cannot be discounted"etc,etc
Then some union/management/Goverment "talks" and then.....

"The union has ensured by securing staff a stake in the new company that this will be a partnership moving forward.".....

[Night Tonic]

It is wrong to say our Union and other Unions come to that cant have any influence on this concerted attack by the Tories.

And your reasoning is?? For gawds sake if the CWU couldn't influence a labour government, they have NO chance under the coalition. Blimey, wake up. If you're trusting Davey for your salvation, you might as well pick the tooth fairy.

[Cut Off King]

I bet the CWU are regretting not taking Mandy's offer of 1/3rd privatisation and the pension fund sorted out now!

[Phantom]

It is wrong to say our Union and other Unions come to that cant have any influence on this concerted attack by the Tories.

And your reasoning is?? For gawds sake if the CWU couldn't influence a labour government, they have NO chance under the coalition. Blimey, wake up. If you're trusting Davey for your salvation, you might as well pick the tooth fairy.

So we just bend over, get greased up and penetrated then eh? thats your answer to everything "just take it, whether its right or not, theres nowt we can do"

[Night Tonic]

That answer is as old as RMC and probably older than 'you're a manager'. Its knowing when the battle is lost, when you're beaten, and coming to terms with it Phantom. If the union had any fight left in it, I think it would be more evident than 'we support Ed Balls' - don't you?

[Phantom]

That answer is as old as RMC and probably older than 'you're a manager'. Its knowing when the battle is lost, when you're beaten, and coming to terms with it Phantom. If the union had any fight left in it, I think it would be more evident than 'we support Ed Balls' - don't you?

Well now you know why this country is in mess, NO FIGHT LEFT IN IT!

[Night Tonic]

And what 'fight' do you envisage? Slowing deliveries to a crawl and in the process guaranteeing everyone else backs the sell off?

No idea why the CWU would back Ed Balls. He looks like a scared rabbit and only stands a marginally better chance than Diane Abbot of becoming Labour leader.

[Broxi51]

He said the bill would be more radical than the previous government's, and hinted that the entire government stake could be sold, as opposed to a minority stake.

What happened to the Lib Dems 49%? Will Clegg be happy as dep PM and face his minions down or will he grow a set and confront davey