Royal Mail meeting unions on modernisation

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The Royal Mail is to hold a two-day summit with union leaders next month to discuss modernising the business in a move expected to lead to job cuts, it was revealed today.

The postal group is aiming to cut costs as well as pressing ahead with a huge modernisation programme in the face of increased competition.

The group has written to workers in some of its divisions setting out options including offers of voluntary redundancy or part-time work.

A spokesman for the Communication Workers Union said: "The Royal Mail needs an agreement with the union on modernisation. Making panic driven cuts that have no logic to them just reduces services."

The Royal Mail employs around 180,000 staff, mainly in its letters business, but industry sources said there was no figure for any job losses likely to happen through modernisation.

A Royal Mail spokesman said: "Royal Mail have made absolutely no announcement of job losses but we want to work with our people so that we take into account their wishes and preferences as Royal Mail continues to modernise and transform its operation to meet the challenges of falling mail volumes and intensifying competition, especially from email and the web as broadband use expands."

Around 50,000 jobs have been lost in the recent years through voluntary redundancies and retirements.

The Government is pressing ahead with controversial plans to sell a minority stake in the business to a private firm, despite fierce resistance from the unions and some backbench Labour MPs.

[fmrPOSTIE]

Falling mail volumes? ... forgets to mention the rise in packets (potentially more lucrative)

Increased competition? ... well Royal Mail is the only End-to-End delivery company and always will be. It still delievrs 99% of all letters. This should be used to its advantage - charge proper prices for DSA mail to make up any lost revenue.