Union threatens to strike over Royal Mail scheme changes

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The Communication Workers Union (CWU) has threatened a national strike after it “firmly rejected” the proposals from the Royal Mail to make changes to its pension plan.

The Royal Mail began consulting with staff and unions about capping increases in pensionable pay at 5%, despite having majority of its liabilities transferred to the government (PP Online, 31 May).

At the time of the announcement, the CWU accused the Royal Mail of capping benefits to help its plan for privatisation.

However, this was denied by the company who said contribution levels without the cap would reach an unsustainable level and affect the commercial viability of the business.

In the CWU's latest statement, the union has said it will fully reject any more changes to employees' occupational pensions.

CWU deputy general secretary Dave Ward said any attempt to implement changes will be "met by a national industrial ballot across the postal constituency".

He added: "We will be seeking support from political parties to raise this issue in parliament and ensure there is a thorough enquiry into the whole question of this latest development."

Ward confirmed the union was also seeking advice to consider the legality of the proposals and actions of the trustee board and the government. The union's lawyers are currently looking at the European Commission's ruling on granting state aid.

The state aid issue relates to the transferring all of the Royal Mail Pension Plan's (RMPP) liabilities and majority of its assets to the government, in order to prepare the postal provider for privatisation (PP Online, 10 June 11).

A special conference will be arranged by the postal executive to discuss the pensions issue as well as privatisation.

The RMPP supports employees from both the Royal Mail and the Post Office, it has around 112,000 members.

The government has said it will privatise the Royal Mail with an initial public offering (IPO) expected within this financial year.