London postal workers are being balloted over strike action in protest at the way efficiency measures are being introduced. The Communication Workers’ Union says that Royal Mail’s plans could cost up to 1,600 jobs. There has already been a half-day strike in Edinburgh, and other areas of the country are also considering strike ballots.
The union says that Royal Mail is forcing all areas of the business to cut costs by 10%, without consideration of workload. But RM said that savings are necessary because mail volume is expected to fall 10% this year because of the recession and increased use of email and other electronic forms of communication.
On Thursday RM announced that annual profits had almost doubled, with all areas of the business in the black for the first time in two decades. Annual profits were around £321m, compared with £162m the previous year. But the pension scheme deficit of £6.8bn dwarfs even the improved figure, leaving Royal Mail in “a precarious financial position” according to Business Secretary Lord Mandelson, who said that “the need for urgent modernisation and fundamental reform is crystal clear”. Despite opposition from 150 Labour MPs, the government intends to press ahead with its plan to sell 30% of RM to a private company, most likely Dutch postal firm TNT.
3 Responses
The Royal Mail will strike themselves into oblivion and probably take my business down with them.
I did 19 years in Royal Mail and watched the job go downhill as the management cut jobs and many corners and pushed the workforce to breaking point and beyond.
My friends who are still in the service want to leave but in the current climate its not possible.It used to be great job and a very good service now it’s just a joke.
#2 I don’t think it’s fair to blame the management. The system itself is flawed and out dated. Coupled with postmen/women who think they are doing us a favour by delivering the mail.
I can’t believe that Royal Mail employees still think they can hold us to ransom. If they don’t like thier job they should leave. I say sack everyone who goes on strike, plenty of people out there who know how to appreciate employment.