Shake-up sparks job fears for postal staff

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http://www.belfasttelegraph.co.uk/news/ ... 12517.html

Thousands of postal workers in Northern Ireland face an uncertain Christmas after the Government agreed a radical shake-up of Royal Mail.

The Communications Workers’ Union, which represents around 3,000 Royal Mail staff in Northern Ireland, had predicted the loss of up to 50,000 jobs throughout the UK.

The grim warning came before the publication of a report yesterday by the former Ofcom deputy chairman, Richard Hooper, which said selling off about a third of the postal system was the only way to save the cash-strapped Royal Mail which has been struggling to cope with a £22m pension deficit and falling profits.

In a deal worth around £3bn, the Independent Review Panel, led by Mr Hooper, recommended that a private sector company, possibly Dutch giant TNT, be brought in ‘with a minority stake’ to help modernise Royal Mail.

At this stage it is not known exactly how many jobs could go here where there is only one main mail centre at Mallusk.

However the Communications Workers’ Union (CWU) has vowed to fight any cuts. The union has delivered a warning that 40,000 to 50,000 jobs from a total workforce of almost 170,000 could go across the UK – a figure considered by ministers to be alarmist.

CWU general secretary Billy Hayes said the union was ‘dismayed’ by the Government’s decision to sell and did not accept that proper investment in Royal Mail should encompass any form of privatisation of the postal service.

“It is incredible that the British Government which has lead led the world in overhauling banks need another European postal service to rescue the Royal Mail.

“Especially one which has already been disgraced by losing sensitive data disks in the mail,” Mr Hayes said.

“This was meant to be a report about competition, but Mandelson ignored the damage done through irresponsible liberalisation and advocates more involvement by private companies,” he told the Belfast Telegraph.

Speaking from London, the CWU Northern Ireland secretary also backed the national position.

Lawrence Houston added: “Until we know the full detail of the actual proposals we cannot comment on the threat.

“We are not opposed to automisation as such and we do agree that we need new machinery to speed up the sorting of the mail, but we want to sit down with the company and discuss any job losses.”

Yesterday, UK Business Secretary Peter Mandelson told the House of Lords: “I believe Royal Mail and the postal market can thrive in the future — provided that decisive action is taken now. Without far-reaching change, the opportunities brought by technology will become overwhelming threats.”

Royal Mail chief executive Adam Crozier said he believed the plans would help secure the future of the Universal Service.

“We firmly believe will help secure the future of the one-price-goes-anywhere Universal Service, which is a crucial part of the social and economic fabric of the country and underpins the entire postal industry in the UK,” he said.

The Royal Mail is considered to be the oldest postal service in the world and has been in state control since the 1600s when Charles I opened his public service. Despite reforms such as splitting off British Telecom in 1981, and allowing competitors to deliver business post, it has remained resolutely in the ownership of taxpayers.

However, last year profits tumbled to £233m, down a third, and despite the cost of a first class stamp rising from 28p to 36p in the past decade, Royal Mail still loses about 6p on every first and second class stamped letter.

The new partnership will not involve the network of local post offices, which Lord Mandelson said combined a “unique” set of commercial, public and social roles.

Arthur McQuitty, Northern Ireland secretary for the National Federation of Subpostmasters, gave the proposal a cautious welcome.