Unions pledge to resist Royal Mail privatisation

[Stormproof]

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Unions pledge to resist Royal Mail privatisation

By Miri Thomas | Publication date: 01/10/2010 | Category: News



Direct sellers are bracing themselves for possible postal strikes this winter as the Communications Workers Union (CWU) vows to fight the government’s plans to privatise Royal Mail.

The publication of a new report into the viability of Royal Mail found that despite its recent modernisation efforts, it “still lags well behind the leading postal operators”. The report by Richard Hooper, former deputy chairman of regulator Ofcom, concluded that urgent action should be taken to accelerate the pace of modernisation. It called for a cash injection into the postal operator either by means of a sale or a flotation.

Business secretary Vince Cable said in a statement that the government will act on the report’s recommendations, promising new legislation within the next few weeks. It has already emerged that employee ownership will be a significant part of the new structure, with 10 percent of shares allocated for Royal Mail workers. The Communication Workers Union slammed the share plan claiming it is “deeply patronising” and says that privatising Royal Mail would be “a disaster”. The union says it “vows to fight the politically motivated move by all means” and has received the backing of the Trades Union Congress (TUC).

This vow could lead to postal strikes and disruption to cataloguers and bulk mailers at their busiest period of the year. Last year’s postal strikes caused widespread chaos in the direct mail sector and cost businesses thousands of pounds. Gifts business Nauticalia, for instance, switched from mailings to inserts at a cost of £90,000 to avoid being caught up in the mail backlog, whilst greetings-card business Flowercard saw a 20 percent drop in sales during the weeks affected by the strikes.

A private matter
Royal Mail welcomed Hooper’s report. A spokesperson says it “clearly demonstrates that to keep delivering the universal service [one price goes anywhere promise], Royal Mail needs a way of getting access to capital, a resolution of the legacy £10.3 billion pension deficit and a strikingly different regulatory approach which allows us to compete fairly in an increasingly tough and shrinking market.”

Graham Cooper of postal consultancy Onepost, also welcomes the proposal of relieving Royal Mail of its pension deficit, adding that doing nothing to reduce the deficit will be a barrier to any private investment. However, he is mindful of potential industrial action by the CWU and the long-term damage it could cause to the mailing industry: “think of falling revenues and organisations that move away from using mail, possibly forever,” he says.

Most of the direct retailers contacted by Catalogue e-business were hesitant to make a public comment. For Wayne Lysaght-Mason, managing director of IronmongeryDirect, a careful balance must be struck between cost-cutting and customer service—something that affects every business: “We don’t know who the winning bidder will be for Royal Mail, let’s hope they value customer service”. N Brown Group’s group development director Paul Kendrick is reticent to comment, but says that the multititle cataloguer has a plan for everything and would “manage” should the union call a national strike. Hilary Andrews of men’s grooming website Mankind, says she is worried about the CWU’s declaration to fight the plans and that any strike action is “very bad news” for online and direct mail businesses. Another cataloguer, who wishes to remain anonymous, says he is waiting to hear exactly what the government has planned, but is worried that privatisation could lead to those living in rural areas receiving a second-rate, or more expensive, postal service due to the elimination of the universal service promise.

[viking]

While we still have Billy Hayes and Dave Ward speaking "On our behalf" joke.....Dont even think about asking me to go on strike!! I have always been a loyal union follower which i always thought was to represent the rights of the working man...how wrong was i, having seen what has happened to us posties last November...where did that get us...working ourselves into an early grave. YOU MADE THE BED NOW YOU LAY IN IT!.....After having had my little rant...i am still a union supporter but would want to see the blokes at the top removed and replaced by someone who has OUR best interests at heart...only then shall i start listening again

[maisymoo04]

CROWY for CWU

[PostieWithTheMostie!]

While we still have Billy Hayes and Dave Ward speaking "On our behalf" joke.....Dont even think about asking me to go on strike!! I have always been a loyal union follower which i always thought was to represent the rights of the working man...how wrong was i, having seen what has happened to us posties last November...where did that get us...working ourselves into an early grave. YOU MADE THE BED NOW YOU LAY IN IT!.....After having had my little rant...i am still a union supporter but would want to see the blokes at the top removed and replaced by someone who has OUR best interests at heart...only then shall i start listening again

Well said couldn't have put it any plainer myself/

[dvbuk55]

Well I don't know maybe they should call a strike for 2 days and then have an Interim Privatisation which meets all the aspirations of the members

[malcolm3011]

Union asking us to support strike action again! I dont think so not after being sold down the river the last two times

[PostieWithTheMostie!]

Union asking us to support strike action again! I dont think so not after being sold down the river the last two times

Exactly, 4 months of sitting round a table with RM, ACAS 'n' Roger - to get shafted and giving the worst deal posssible - RM now saying they've got no money and lo 'n' behold the CWU want us to go out n strike, ermmmm - IT WOULD HAVE NOTHING TO DO WITH SAVING THEIR NEW BEST BUDDIES (RM) SOME EXTRA CASH WITH ALL OF US LOSING OUT ON A FEW DAYS WAGES. The answer to the CWU is just like the old slogan on Drugs - ' JUST SAY NO !!! '

[Cut Off King]

The best bit is that Dingo & Truth think that by scaremungering that they can encourage us to go out again,
only FOOLS would follow the CWU leaders into another SH*T deal,
If they had delivered last year then it would be different.
But while we lose mony, they spout crap, Then recomend that we accept any old crap to insure that, they stay at the top and we put up with the crap

[andy2007]

So instead, you'll lie down, and let RM and the ConD'em Govenment walk all over you?
Or are you planning some kind of action, which doesn't involve the CWU?
Yes, HQ have let us down twice. But what's the alternative?
Be doormats?
Well, I don't intend to be one!

[fishtank]

So instead, you'll lie down, and let RM and the ConD'em Govenment walk all over you?
Or are you planning some kind of action, which doesn't involve the CWU?
Yes, HQ have let us down twice. But what's the alternative?
Be doormats?
Well, I don't intend to be one!

HQ need to re-engage the membership Andy...and very,very quickly and i'll be honest with you...they don't seem that interested.
No matter what you think of this agreement or whether you think it was necessary...the bottom line is it has weakened the union at probably the worst possible time for us..
It would take great courage or...great foolishness to call the membership out right now knowing that a rejection would destroy any credible fight against privatisation.
This is not a secret...both Royal Mail and the ConDem Goverment are well aware of our position.
A ballot for Industrial Action would have to be the very.very last resort.

[andy2007]

I suspect that was the plan all along. For RM an the Government to talk HQ (and enough of the members), into accepting crap deals. So that people would loose confidence ithe CWU. Leaving the door wide open, for them to Privatise us.

[Tman]

I suspect that was the plan all along. For RM an the Government to talk HQ (and enough of the members), into accepting crap deals. So that people would loose confidence ithe CWU. Leaving the door wide open, for them to Privatise us.

Ahh, a Conspiracy Theory.... but it ignores the fact that the deals were voted on, not forced in, so then it must mean the workforce were dumb enough to accept apparently crap deals, or couldn't understand or be bothered to read the little tiny words....

Like the ConDems weren't going to go for privatisation regardless of any past RM/CWU deals, good or bad, anyway

[fishtank]

I suspect that was the plan all along. For RM an the Government to talk HQ (and enough of the members), into accepting crap deals. So that people would loose confidence ithe CWU. Leaving the door wide open, for them to Privatise us.

Ahh, a Conspiracy Theory.... but it ignores the fact that the deals were voted on, not forced in, so then it must mean the workforce were dumb enough to accept apparently crap deals, or couldn't understand or be bothered to read the little tiny words....

Like the ConDems weren't going to go for privatisation regardless of any past RM/CWU deals, good or bad, anyway

No conspiracy Tman..we're not that important in the grand scheme of things...
Royal Mail knew the effect this deal would have on the membership but that's just forward planning......to the ConDems it's nothing more than a welcome bonus.

[Martin Walsh]

As a trade union the cwu is opposed to the lib con decision to sell Royal Mail and to seperate Post Office counters from Royal Mail in the sell off.

This would mean protentially the seperation off or the winding up of our pension scheme. As Post Office counters would continue to be owned by the Governement whereas Royal Mail would be owned by shareholders.

Now the tactic which the CWU has used thus far has nothing to do with industrial action at this present time. The campaign so far has been to target the 73 lib con mps with the smallest majorities. Most of these MPs would lose their seat if just 1 vote in every 500 changed.

In addition the union has held fringe meetings at all the party conferences and the one at the tory party on sunday was packed.

However if our members pensions was at risk including the assets of our pension scheme was going to be robbed by the government then a trade union would consult its members and that would include industrial action.

Of course the union would launch a campaign and there would be a postal ballot with the strictist employment laws in europe governing the ballot.

I have no doubt if the work was done and the members knew what the arguements were they would support a yes vote.

I have said it before , you would not be voting for the CWU , Dave Ward , Billy Hayes , Dingo , the truth , dvbuk or Fishtank , you will be deciding whether your going to support the Government and Royal Mail`s decison to rob your defered pay. Remember your pension is your defered pay.

There is a lot going on behind the scenes so hopefully it wont come to a ballot. But if it does and if them members back the union again then what are you going to do ?

[dvbuk55]

Here comes the pension bogey man again wheeled out, as per usual, when the need arises.

The pension deficit has been going on for years - whilst Labour was in power over whom, despite the financial support, the CWU had no influence whatsoever.

It strikes me that there's a lot goes on behind the scenes - and look what we ended up with last time! It just makes you wonder what it would take for the CWU to recommend accepting privatisation

Strange though, for the first time in, oh it must be ten years, the branch I used to belong to has actually sent a letter to people at my office who aren't members -so maybe they are going to go for a ballot as a last resort - well I wish them luck

I'll just bet the full time release bods are worried that a privatised company would adhere strictly to the legal requirement for release time for union activities.

As for frightening the sitting MPs into not following the party whip especially when we are four years from another election.

Just wonder if the privatisation goes ahead and Labour win an election, in the not too distant future, they would reverse the sell off just like they repealed the anti-union laws

Still looking on the bright side you would finally get a vote on the pension that was promised the last time the pension fund was robbed.