Business leader's post strike fears

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http://www.peterboroughtoday.co.uk/news ... 5666236.jp

Published Date: 22 September 2009
Asha Mehta


A BUSINESS leader has warned a national postal strike could spell disaster for Peterborough companies already reeling from the recent walk- outs.
Peterborough Chamber of Commerce chairman Iain Crighton said the chaos caused by the string of strikes in the city had been a blow to businesses already suffering due to the credit crunch.

His own Werrington-based company, car dealer Crightons, has had delays in cashflow after a series of strikes in the past two months by hundreds of Peterborough postal workers, who are locked in a bitter dispute over working practices and pay.

The mail depot at Papyrus Road, Werrington, was left with a staggering backlog of half a million items – the second highest outside London – union leaders said.

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And Mr Crighton said if the 130,000 members of the Communication Workers Union (CWU) voted for a national strike in a ballot – the result of which is expected on October 8 – the consequences could be dire.

He said: "It could have quite a severe effect. It interrupts the normal flow of business and, when things are tough, we don't need additional disruption to slow business down.

"People could say the cheque is in the post, but the strike could mean it disappears for quite a long time. Cashflow could be severely affected."

He said cars had been sitting on the lot because staff were waiting on customers' insurance details, which had been held up in the post, before they could deliver them.

Advising businesses to brace themselves for the worst-case scenario, he said: "All businesses should do a little bit of contingency planning.

"If they are not able to receive any mail for up to two weeks, they should start thinking now how to deal with it.

"It will be disruption, but how disruptive remains to be seen. Hopefully, all parties will reach an agreement because this is the last thing businesses need."

Branch secretary of the CWU in the East Michael Williams said strike action was a last resort.

He said: "We sympathise entirely with businesses. We don't want to take strike action. We will be losing pay. But we are left in this situation because it's the only way to get the employer to listen."

Mr Williams said a "yes" vote might not mean strikes would follow, but it would show Royal Mail the strength of feeling and could prompt negotiations.

Royal Mail says the CWU's strike ballot is unjustified, damaging to customers and an attempt to undermine modernisation the company believes is essential.

Margaret Formosa, branch manager at Grays Homes, based in Broadway, Peterborough, said: "It will have a tremendous effect on us. When we tie a sale up, we need to advise all parties, but with a strike, there will be a delay there. It will slow the whole process down."