Royal Mail facing more job cuts

[POSTMAN]

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Further job losses are likely as part of the modernisation of Royal Mail, Business Minister Pat McFadden has said.

Both Royal Mail's management and the unions recognised that fewer people would work for the state-owned company in future, he said.

Union dissatisfaction over the Royal Mail's modernisation programme, pay and job cuts last year led to wildcat strikes followed by a series of official walkouts.

At Commons question time, Mr McFadden said: "During the dispute before Christmas we kept in touch with both sides, encouraging an agreement on modernisation of Royal Mail.

"These talks are continuing and I believe that in the context of falling mail volumes and the greater use of new technology both Royal Mail and representatives of the workforce understand that there are likely to be fewer people working for Royal Mail in the future than there are today."

Labour's John Robertson (Glasgow NW) said he was "disappointed" that Mr McFadden was not taking a more active role in talks between the Royal Mail and the unions.

Mr McFadden said the Government had put a "considerable" amount of money into the Royal Mail.

But the company's multi-billion pound pension deficit was an issue for the Royal Mail to tackle, he said.

The Government was forced to ditch legislation that would have seen the state bail out the pension deficit as part of a package involving the part-privatisation of Royal Mail.

In the face of opposition from Labour MPs and the Communication Workers Union, Business Secretary Lord Mandelson dropped the legislation, claiming that market conditions meant it was not the right time to find a buyer for a share of Royal Mail.

[Big Daz]

"the company's multi-billion pound pension deficit was an issue for the Royal Mail to tackle, he said."

Oh dear Billy wont be happy, this somewhat throws a spanner in the works of his securing CWU support to Labour at the general election!!!

[rhino49]

Mr McFadden said the Government had put a "considerable" amount of money into the Royal Mail.

Correct me if I'm wrong but hasn't he forgotten that they have also taken somewhat more than a considerable amount OUT of Royal Mail over the years?

[Big Daz]

That money is A) Loan
B) post office subsidy

McFadden talking bolloks again

What use is the subsidy to RML we dont get a penny of it!!!

[MinisterofCucumber]

"Further job losses are likely as part of the modernisation of Royal Mail, Business Minister Pat McFadden has said."

What a load of bollocks.

There is a gold rush on at the moment for the internet shopping delivery market. We are the only organisation that can offer delivery to every door in the country. If the postal market had not been liberalised, we would have been raking it in. We could have increased staff numbers, kept our final salary pensions, improved our conditions and kept the price low for the public. The only reason for job losses is to comply with the EU Postal directive.

The union makes a big song and dance about the benefits of being affiliated to the Labour Party but they couldn't stop Labour MEPs pushing through the Postal directive. Even Thatcher didn't want to privatise Royal Mail. The reason is simple, no commercial organisation can offer delivery to every door in the country. Royal Mail is a service not a business.

There is only one believable reason why our postal sector was opened to competition. It was a political decision to destroy the infrastructure of the nation states of Europe to pave the way for the creation of a European superstate. We are being made to suffer regardless of whether we support this objective or not.

Political affiliation doesn't work. The union's job is to work for its members not a political party.

[La Poste]

There is only one believable reason why our postal sector was opened to competition. It was a political decision to destroy the infrastructure of the nation states of Europe to pave the way for the creation of a European superstate. We are being made to suffer regardless of whether we support this objective or not.

I agree, the USA model is all the rage these days and those in power want Europe to be ecxactly the same.