Postal service’s biggest union blames recent late deliveries on new ownership ‘chaos’
Royal Mail’s powerful union has turned on Czech billionaire Daniel Kretinsky just months after his takeover of the postal service.
The Communication Workers Union (CWU), which represents more than 100,000 postal staff, has written to MPs to blame late letter deliveries on “chaos” under Royal Mail’s new ownership.
The union said it was concerned that Mr Kretinsky’s EP Group, which acquired Royal Mail this summer, was not adhering to the terms of an agreement signed at the time of his takeover and called for politicians to intervene.
It signals a breakdown in relations between Royal Mail and its biggest union amid a stand-off over plans to water down the postal service’s delivery obligations.
The move will also spark fears of a repeat of strike action that stretched for more than a year and cost the company £1m a day.
The letter, which was distributed to members to send to their MPs, warned: “We are now at a crucial point with the new owners and we are seeing clear evidence that some of the negative forces from the previous administration still hold power and influence.”
The CWU said more than 15,000 letters have now been sent by members. Bosses are also pushing for MPs on the business and trade committee to haul Mr Kretinsky in for questioning, while a meeting with Peter Kyle, the Business Secretary, is expected within the next fortnight.
The union backlash is focused on reforms to Royal Mail’s universal service obligation (USO), which requires the company to deliver anywhere in the UK six days a week but which the company claims makes makes it financially unsustainable.
Royal Mail was recently allowed to scrap second class letter deliveries on Saturday. A plan to roll out the new timetable was set to be agreed by July but has stalled amid a stand-off with unions.
‘Two-tier’ working environment
While the CWU says it supports USO reform in principle, the two sides are at loggerheads about how the changes should be implemented and the full reforms are now not expected to start until next year.
In a warning to ministers, CWU accused Royal Mail’s bosses of being in “denial” that the trials were not working and attempting to “plough on recklessly with further deployment”.
The letter branded Royal Mail’s claim that the reform would save the company £300m a year “totally unrealistic”.
The CWU also complained of a “two-tier” working environment, with recent joiners given less favourable pay and working conditions than long-term staff.
It warned this had left Royal Mail struggling to hire and retain workers across the country in a “revolving door of staff coming in and out of the company causes chaos in the workplace”.
Kretinsky’s company and the CWU were aiming to strike a deal to equalise pay and conditions for all employees next month but no progress has been made.
Kretinsky’s reign
The impasse will create a fresh headache for Mr Kretinsky, whose takeover of Royal Mail sparked fierce political scrutiny amid concerns about the postal service passing into foreign ownership for the first time in its 500-year history.
EP Group made a number of legally-binding undertakings in order to secure the deal, including maintaining first-class letter deliveries, protecting the Royal Mail brand and keeping the company’s headquarters and tax base in the UK.
It also signed an agreement with the CWU, which subsequently backed the deal, on a number of topics including pay and conditions.
Mr Kretinsky has been refocusing Royal Mail on parcels, rolling out thousands of parcel lockers across the country.
Royal Mail has stepped up its focus on parcels amid a continued decline in letter sending Credit: James Linsell Clark / SWNS
Other modernisation efforts include increased automation and tightening policies on sick absence, which had been a major issue for the company.
There are signs the turnaround is starting to pay off, with Royal Mail reporting its first profit in three years when redundancy costs are stripped out.
However, the postal service continues to struggle with quality of service and was hit with a record £21m fine last month after it delivered almost one in four first-class letters late.
A Royal Mail spokesman said: “Royal Mail and our new owners EP Group remain fully committed to the EP-CWU agreement and working together to build a stronger and more sustainable Royal Mail for our customers and colleagues.”
It said it was “disappointing” that the CWU had not agreed to its USO plan.
A spokesman for Kretinsky’s group said: “Despite the CWU’s delay in delivering on this commitment, we are optimistic that our ongoing talks will progress towards a resolution that puts the interests of Royal Mail and all colleagues first.”
