A POSITIVE FUTURE FOR ROYAL MAIL - TIME TO DELIVER

[TrueBlueTerrier]

Billy Hayes Blog http://www.billyhayes.co.uk/permalink.p ... 97_0_1_0_M

ARTICLE FOR THE MORNING STAR:

The CWU has submitted motion 67 to this year’s TUC Congress opposing renewed threats to privatise Royal Mail. The CWU has also set up fringe meetings at the TUC and Labour Party Conference on this issue. And on Monday, 22 September, postal workers from throughout the country will be taking part in a march and rally outside the Labour Party conference.

Looked at from the outside, Royal Mail ought to be safe from the threat of privatisation. After all, Labour’s 2005 Election Manifesto ruled out the privatisation of Royal Mail. Further, at the July 2008 meeting of Labour’s National Policy Forum, Government ministers signed up to the following words:

“We have set out a vision of a wholly publicly owned, integrated Royal Mail in good health, providing customers with an excellent service and its employees with rewarding employment”.

But the threat is very real. Later this year the Government convened review, chaired by Richard Hooper, will publish its report. Postcomm, the industries regulator, and Royal Mail management, have made submissions calling for the privatisation of Royal Mail. Postcomm, whose failed policy has created a financial crisis for Royal Mail, goes further and proposes the break-up of Royal Mail.

The CWU believes that Hooper is very likely to support the privatisation of Royal Mail, probably through a joint venture with private capital. There is also a strong likelihood that parts of Royal Mail such as Parcelforce will be sold off separately.

It is likely Hooper will propose keeping the Post Office Network in the public sector. This network loses money, hence Hooper will be proposing that the tax payer subsidises the Counters Network, whilst Royal Mail profits are diverted to the private sector. This would result in a further massive round of local Post Office branch closures.

In our view, there is a positive future for Royal Mail as a public service. What the Hooper Review must do is end the subsidy that Royal Mail is providing to its competitors due to the unfavourable pricing regime imposed by Postcomm. In addition, the Review must allow Royal Mail to charge a suitable price for its products, postal prices have been held below the market value of Royal Mail’s products.

The CWU has long argued that Royal Mail suffers from under-investment. This is true of the Letters Services, and of the services offered over Post Office Counters. The Government should reform the Postal Services Act to ensure that Royal Mail’s profits can be reinvested into Royal Mail, acknowledging its unique commercial and social role as a not for profit organisation.

Of course, Royal Mail management have long sought privatisation. They are looking forward to large share options, and being freed from anything but commercial considerations.

In January 2007, the Government rejected a management proposal to privatise Royal Mail, after four years of management lobbying and Union counter-campaigning. Since that time management have been in a vindictive mood with the workforce.

They have not had it all their own way. Last year’s postal strikes resulted in a 5.4% increase in the hourly rate, and a further 1.5% increase this year, the best achieved in the public sector for that period. And management’s efforts to break the Union’s involvement in negotiating change were also defeated.

But there are unresolved issued. Management have refused to reopen negotiations on the final salary scheme for postal workers. The CWU, along with UNITE, are campaigning to reverse this. Parliamentary EDM No 2136 summarises our view on Government responsibility to postal workers on pensions. This is one of a number of initiatives underway.

At the same time management has also placed themselves on a collision course with the CWU on the issue of Sorting Office closures. They are seeking to short cut negotiations. We are prepared to negotiate changes by new investment in mechanisation. But we will not lose postal workers jobs through arbitrary and unilateral management actions.

The coming months will be difficult, but we are confident that a positive future for Royal Mail can be secured with the support of the wider labour movement.

Posted by Billy Hayes | @ Mon, 8 Sep 2008 11:49:38 +0100