MINISTER WARNS POSTAL UNIONS AGAINST STRIKE

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TO: ALL BRANCHES WITH POSTAL MEMBERS


Dear Colleague


MINISTER WARNS POSTAL UNIONS AGAINST STRIKE


Please find attached to this LTB a copy of an article that appeared in the Guardian on the 21st July with the above mentioned headline.


In response to this article I have today written to Ed Davey, Minister for Employment Relations, Consumer and Postal Affairs. A copy of this letter is attached.


I would ask Branches to ensure that CWU members are aware of these developments.


Yours sincerely

Dave Ward
Deputy General Secretary (P)






Royal Mail workers warned against strike

• No bailout for pension fund without sell-off to private sector
• Opposing privatisation would be 'self-defeating' says minister


The minister in charge of privatising Royal Mailhas warned unions opposed to the plan that taking further industrial action would be "self-defeating".
Ed Davey also said there would be no government bailout of Royal Mail's estimated £10bn pension fund deficit without selling off the company.
"We are having to take incredibly tough decisions across the public sector," he told the Guardian. "I do not think people will believe that Royal Mail should be protected."
The Guardian has also learnt that the Treasury could force Royal Mail's new owners to hand back the £900m the government lent the company to modernise much earlier than expected. Royal Mail's annual report in May said it expected to renegotiate another debt facility when the current five year funding arrangement expires in 2014. But it is now understood the money will have to be repaid in 2014, because the government will expect any new private owners to fund modernisation themselves.
The Communication Workers' Union remains staunchly opposed to the sell-off plan and is co-ordinating a national campaign against it. It believes bringing in new private sector management and owners is likely to scupper the modernisation agreement struck between the union and Royal Mail after last year's bitter industrial dispute and to lead to renewed hostilities.
Speaking to the Guardian, Davey, Liberal Democrat MP for Kingston and Surbiton, said new owners would have to "deal with employees fairly". He stressed that he hoped he would be able to win round the CWU, which successfully campaigned against the previous government's privatisationplan last year.
"I start off with a positive agenda to make sure there are no strikes which I hope the unions and members will respond positively to. I am hoping that because they understand that Royal Mail has financial challenges and are rather concerned about members' pensions they will recognise that what we are proposing is both sensible and frankly essential."
Under the plan employees will be offered shares in the business on a partnership model similar to John Lewis, giving them a share of profits. Last month Davey met Billy Hayes, general secretary of the CWU, and his deputy Dave Ward. Further meetings are planned.
"Many realise within Royal Mail that the last strike damaged the company," Davey said. "Any strikes now in the mail sector seem pretty self-defeating."
A CWU spokesman said the union remained opposed to the plan. He said the union was in a stronger position to defeat the latest privatisation attempt than last year because it had agreed to work with Royal Mail management to modernise by bringing in new automated sorting machines and working practices.
"The company is not crying out for money," the CWU spokesman said. "It has the appropriate modernisation programme in place. Royal Mail has stability now for the first time for a long time. Our position is to oppose privatisation."
A new postal bill is to go before Parliament in the autumn and could secure royal assent by next June, Davey said. The auction will not begin until legislation has been agreed. He said the bill would be more radical than the previous government's, and hinted that the entire government stake could be sold, as opposed to a minority stake.




Letter to Ed Davey, MP



Dear Ed

MINISTER WARNS POSTAL UNION'S AGAINST STRIKE


I was very disappointed to read your comments in the Guardian article of 21st July.


Far from threatening strike action, the CWU has entered into a three year modernisation agreement with Royal Mail which will bring products and services to the cutting edge of delivery systems while providing a period of stability for the company and its staff.


Your comments are either ill-informed or deliberately timed to destabilise the workforce and use this as a smokescreen for the government to pursue its unpopular ideological privatisation objective.


Talk of a Government bail out on pensions is also totally misleading. A proper examination of the facts will show pensions can be resolved without privatisation.


We are very worried that the Government intends to raid the £24 billion of assets in the Royal Mail pension scheme under the pretence of 'bailing it out'. CWU is not looking for a dispute - but if our members' pension fund is robbed of its assets then we will respond in a decisive manner. In response to your article I am publishing this letter to CWU Branches and members.
I look forward to seeing you on the 3rd August, when I hope you will be able to clarify the Government's position on CWU members' pension entitlements.
Yours sincerely
Dave Ward
Deputy General Secretary (P)

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