Strikes continue as PM rejects petition on RM Privatisation

[Geezer]

http://www.ibtimes.co.uk/articles/20090 ... sation.htm

25 August 2009 @ 11:38 am BST


The week long postal strike organised by the Communication Workers Union is set to continue as around 20,000 postal workers are to participate in the walkouts. London is set to be hit by the postal strike on August 27 to August 29 with various divisions of the postal service striking on the respective dates.


The bitter dispute between the union and the Royal Mail has spilled over into a series of postal strikes that has affected deliveries and collection across the country.

The union is striking over job loss, pay and working terms and has pleaded for Royal Mail to start negotiations. Royal Mail however, has refuted any calls for negotiations as it look to push forward the modernisation of Royal Mail under challenging circumstances with increased competition and the popularity of e-mail and internet banking.

The union is also believed to be upset over plan by the government to part privatise Royal Mail which it has opposed vehemently.

The government has put the part privatisation plans on halt as it failed in its quest for suitable bidders. The sale is likely to go ahead once the market conditions improve the government announced.

The Prime Minister’s Office (PMO) yesterday rejected a petition that requested the part privatisation of the Royal Mail be rejected by the Prime Minister.

The petition was submitted by John Colbert, Communications and Campaigns Manager of Communication Workers Union.

The petition argued that the part privatisation or minority stake sale of Royal Mail could lead to a "loss of service, price hikes and erode the much loved public service".

In reply to the petition the PMO said it commissioned an independent review by Richard Hooper which concluded that "the status quo in the postal market was untenable and that if change did not occur, the universal service which is the cornerstone of the postal system would be under threat."

The review called for major changes and restructuring of Royal Mail including modifications in expansion and diversification of products and services, network structure of mail centres and delivery offices and existing working practices.

The report further added “What is needed now is real action from Royal Mail’s management and the unions to take forward Royal Mail’s transformation plans. These plans include the introduction of new machinery to sort the mail and some 27,000 handheld tracking devices have been issued to record the delivery of Special Delivery and other tracked mail. ”

The statement from PMO concluded changes in working practices and part privatisation of Royal Mail is the way forward.

"The Government firmly believes that the implementation of all of the elements of the Hooper Review recommendations is the best way to secure Royal Mail’s future and to maintain the universal postal service. When market conditions change we will return to the issue [of part privatisation of Royal Mail]," concluded the statement.

The government which backs the Royal Mail’s attempts to modernise the postal service has refused to force Royal Mail into a negotiation with the union over restructuring the postal service. It has called on the union to support the modernisation plans set forth by the Royal Mail management.