Mandelson in warning over post strikes
THE finances of state-owned Royal Mail will dive into the red if a planned national strike by workers goes ahead this week, business secretary Lord Mandelson said yesterday.
Thousands of postal workers will stage strikes organised by the Communication Workers Union on Thursday and Friday this week in a dispute over pay, jobs and modernisation at the company.
Talks are ongoing between the company and union to try to stop the action which would cripple deliveries and embarrass the Labour government
“Royal Mail’s finances will be plunged into the red. Last year the company, out of a £6.7bn mail business turnover, made less than one per cent profit,” Mandelson told parliament.
“One thing this company cannot afford is strikes and industrial action.”
CWU general secretary Billy Hayes said Mandelson’s comments would damage the negotiations.
“The union remains in talks and is working hard for an agreement,” he said in a statement.
The Royal Mail’s business has suffered in recent years as consumers and industry switch to the internet or more specialised postal services to exchange information, services and goods.
The government wants to sell up to 30 per cent of the company to make it more competitive but has had to shelve those plans after opposition from workers and
Labour politicians.
Mandelson said without embracing change, the Royal Mail faced “terminal decline,” adding that strikes would not solve the dispute but would drive customers away and put small firms in jeopardy just as economy conditions appeared to be improving.
“Strikes are not the way to resolve differences or safeguard the future of our postal services,” he said.