Lord Mandelson calls for Postal Privatisation

[merson01]

Lord Mandelson calls for Postal Privatisation
By
Keith Lee
Lord Peter Mandelson, the Labour Governments Business Secretary has openly called for the partial privatisation of the UK postal network. In a recent interview with the Financial Times Mandelson claims he would have done it ten years ago if he had not been sacked from the cabinet.” Frankly, 10 years on, I was surprised this was still an unresolved issue," he stated.
The Communication Workers Union (CWU) who represents 180,000 postal workers has expressed anger and has called for his sacking. This fake outrage is somewhat obscene given the backing the CWU leadership have given the Labour government and serves to cover the fact that it is Labour more than any other previous government that has taken the privatisation of the Post furthest. Labour following EU guidelines are pressing ahead with liberalisation faster than any other European country.
The Labour government’s has taken on board the European Union market liberalisation laws and has given private operators permission to cream off the collection and delivery of bulk mail from large business customers, putting further pressure on the company’s ability to meet the Universal Service Obligation, which guarantees collection and delivery to all addresses in the UK.
Further pressure for restructuring and privatisation is bound to come from the government-commissioned review into competition in the postal market chaired by businessman Richard Hooper, which is due to report shortly.

The government said its remit was to suggest how best to meet EU demands for total liberalisation of the postal market by the end of 2010. Its preliminary report published in May has already stated that “Returning to the days of statutory postal monopolies is not a policy option in the European Union” and points to further liberalisation as the only solution.

It is clear that the Labour government will utilise the Hooper Review to do away with the USO, Hooper intimated as much in a recent speech .I sense that there’s more realism, now, about the challenge we face in maintaining the universal postal service.
The fact is that the postal services sector, whose health significantly determines the health of the universal postal service, is facing two big changes. And they are happening concurrently.
Post is bound to be affected by lower growth as consumers and companies look ever harder at ways of cutting their costs in harder economic times. This is cyclical change.
But the change is structural, too. I’m not referring here to the arrival of competition within the postal sector but, more important in the Panel’s view, to the arrival of competition from the digital media. I have spent my whole career working in and fascinated by the converging media and communications industries.
Traditional media and communications companies like the Royal Mail, like Trinity Mirror, Johnstone Press, like ITV are under assault from structural changes in their marketplaces. The impact of the digital revolution on the postal services sector now and in the future is the one point which did not emerge as strongly as it should have in the media coverage of our interim report back in May. We will want to make our point much more clearly this time”.
While there has been a delay in the publishing of the Hooper Review the Royal Mail has not been slow to step up its attack on postal workers. With postal workers now working harder for less pay Royal Mail has just announced the fruits of this increase in productivity with a operating profit for the first half of year of £177 million ,doubled from last year, with letters (delivery) securing £46 million alone
The Royal Mail has taken on board Labours call saying it would like to sell shares to raise private capital. In preparation for privatisation it has launched a massive programme of mail centre and delivery office closures.

These changes have been backed by Richard Hooper, who said last month that "Royal Mail's modernisation will be at the heart of our recommendations." He made it clear that he agrees with the need for Royal Mail to get the capital it needs to update its services, and this will not come from the Labour Government but the logic dictates that it will come from private funding.
Hooper backs the need to "remove costs" which ultimately means closing mail centres and delivery offices leading to massive job losses. Royal Mail's has plans to close up to ten mail centres and many more delivery offices.
On top of this postal workers who have retired or are coming up for retirement face having a massively reduced pension or in some cases none at all. According to the Daily Telegraph Independent pension consultant John Rolfe said Royal Mail’s pension deficit could rise from £2.9bn to £5bn. As of March this year Royal Mail had pension assets of £23.9bn and liabilities of £26.8bn.
The article pointed out that the pension fund had been hit massively by the stock market collapse, which has led to a 15pc fall in equities to £9.5bn,
The dire position facing postal workers is down to the role of the CWU. Its leader Billy Hayes, general secretary of the Communication Workers' Union, has supported Labour for setting up the Hooper review and has warned labour it still needs the union to police its members who are looking for ways to oppose privatisation.
Hayes has sought to peddle illusions in New Labour that they can some how be pressurised into keeping the Royal Mail in public hands. The CWU bureaucracy is not alone in seeking to prevent a rebellion of postal workers against the Labour Government. It is joined by the SWP (Socialist Workers Party) who have leading members in position of power inside the CWU.
None more so than Jane Loftus who is CWU Vice President Chair of the Postal Executive. Loftus has become the chief spokesperson for the union and parrots the same line. In a recent article she makes the point that “The latest threat is a qualitative shift in policy – never before has a cabinet minister openly called for privatisation of the Royal Mail. “However, if it becomes clear that Mandelson’s outburst is in fact government policy, then the must be a swift response from the whole union while her first point is true her second point is a lie.
Even the most political naïve postal worker knows that privatisation of the post is government policy. Loftus and the SWP are deliberately sowing illusions in the Labour government at a time of growing hostility to it.

Loftus has a long record as a watercarrier to the CWU bureaucracy. Elected to the executive in 2002, in the run-up to the war on Iraq she reportedly prevented an amendment registering a vote of no confidence in Prime Minister Tony Blair by withdrawing the original motion. She also apparently voted in favour of the 2004 “Major Change” productivity agreement between Royal Mail and the CWU.

Endnotes
Mandelson backs partial privatisation http://www.FT.com 20th Oct 2008
Richard Hooper’s speech at the Postcomm Forum 2nd Oct 2008 http://www.berr.gov.uk/whatwedo/sectors ... 48279.html
Royal Mail Pension Deficit Daily Telegraph 15 Oct 2008
Privatisation threat to Post Jane Loftus http://www.swp.org

[dvbuk55]

I'm getting a vision of the shower scene in Psycho, being stabbed in the back by someone purporting to be helpful. I'm ordering a stab proof vest and a barrel of KY.

[johnnyp]

:mfo Need we say any more

[Martin Walsh]

Look it should be obvious that some in our union would wish to demoise Mandleson and make him out to be a marvick acting on his own and out of sync with the rest of the labour party, as it would some how mean that we dont think the Labour government is to blame. The fact is we know the trouble the GS and DGSP had at warwick getting the words we had last time cause they wanted a joint venture.

Its time activists in Branch`s starting calling for the implemeanton of Emergency motion 6 which was carried by last years general conference. That motion demands that if the government wants to introduce a joint venture or private capital , or the government has not taken steps over our pension , or the post office clousre progamme or the unfair competition then all members should be balloted on whether the cwu funds the labour party at the next election which basically means the union will be expelled from the labour party.

Whilst the timetable is march for the ballot , branch`s and activists should be insisting that the consultation and preparation begins. Especially as the Hooper reports finding has been delayed.

[merson01]

Thanks for your post. I agree with you. I think you should withdraw the levy. Why should postal workers pay for the cutting of their own throats. I also pose that the break with Labour cannot soley be organisational there has to be a political rebellion against the government and what it stands for. How about the setting up of rank and file committees under the control of postal workers.

[Big Daz]

And we learnt what exactly from that little peice of writing?

Grumblings from the far left eager to snap up a bit of CWU cash? And what exactly would the CWU achive by giving cash to small parties on the far left? How would it benefit CWU mbrs?

I wish anybody and everybody thats not a member of labour or a member of a affilated union would stop poking there noses in. The TU/LP links are matter for them and their members nobody else!

[BELIAL]

Look it should be obvious that some in our union would wish to demoise Mandleson and make him out to be a marvick acting on his own and out of sync with the rest of the labour party, as it would some how mean that we dont think the Labour government is to blame. The fact is we know the trouble the GS and DGSP had at warwick getting the words we had last time cause they wanted a joint venture.

Its time activists in Branch`s starting calling for the implemeanton of Emergency motion 6 which was carried by last years general conference. That motion demands that if the government wants to introduce a joint venture or private capital , or the government has not taken steps over our pension , or the post office clousre progamme or the unfair competition then all members should be balloted on whether the cwu funds the labour party at the next election which basically means the union will be expelled from the labour party.

Whilst the timetable is march for the ballot , branch`s and activists should be insisting that the consultation and preparation begins. Especially as the Hooper reports finding has been delayed.

Just an ordinary member like most .and this is the first i've heard of emergency motion 6. Can you give me a cut off date for government failure to restore our pensions? Much obliged

[Big Daz]

Last years motion!

This years motion was EM 12, will dig it out.

I would say forget about dates as soon we will know one way nor the other whats going to happen with Royal Mail and our pensions so we will know then if policy has to be enacted to scrap funding of Labour.

Im telling you Labour will not jepodise CWU money this side of a general election, that would be a very poor srategy for Labour to take.


Government need to be very carefull especially if they wish to make changes to the postal services act as they may have a rebellion on their hands.

[Martin Walsh]

E6 was carried at this years General Conference and is the one about the ballot . E12 was carried in the Postal conference.

[Martin Walsh]

Big Daz dates are important the whole union included the national executive agreed to E6 and the timetable. I have been involved in the union a long time and recognise that a 3 card trick is being played on us by a delay to Hooper which may suit some in the union and labour party get past acitivating the ballot which the motion demanded.

Read E6 there really is no middle ground either the Government has done all what the motion states or we ballot the membership on whether we fund them at the next election. NO more fudge the Government were the ones who introuduce competition , stood by and allowed Royal mail to change pensions and are in favour of a joint venture, they either pull back or we should stop funding them.

[Big Daz]

Thanks

I only attened postal conference so not too hot on general conference proceedings compared to postal group and royal mail letters conferences.

[Big Daz]

Im off to bed falling asleep at the comptuer and having nightmares about emergency motions

[BELIAL]

Hmm, but deadlines anyone, or is it open ended and wooly and destined to succeed by default?

Two further comm's but Q still stands. Date?

[Martin Walsh]

Belial the deadline for the ballot is march thats what the motion stated. No doubt some within the union will attempt to wiggle out of it, but its time to give the members their say on wether they had done what they promised on the post office.

[norbert]

:mfo Need we say any more

the article is from the far left - I'm inclined to think it's New Labour's possible way of wriggling out of the mess they have made with the Postal Services Act 2000 .

There has been bad blood between the Blairite wing and the CWU since the mid 90's , late 90's - also think there has been an element of spiteful revenge - and no ! - I've not been on too many " The Comrades " sites or read too many conspiracy theory books .

Too many digs at the SWP , that's what the comrades do ! , " Deidre Spart " has decided she wants to be a careerist - hardly a surprise ? - easiest way for the CWU to neutralize her - just like the PO making reps managers - New Labour is full of people who have been on the road to Damascus - Mandy - Young Communists : - Darling - used to be a Derek Hatton style Council Leader- Kinnock used to call him - that Trot -their politics goes towards the right but the mentality stays the same