Department for Business, Innovation and Skills
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MANDELSON CONDEMNS ROYAL MAIL STRIKE THREAT
“This is exactly the head-in-the sand approach I have warned about. The Royal Mail needs to change and modernise to turn itself round and compete effectively. The union nationally agreed a way forward two years ago. But its own branches are standing in the way of progress.
“The need for modernisation in Royal Mail has not gone away. We have heard a lot from both management and the CWU that they are up for change. Now it’s time to deliver it.
“We are looking for the changes to Royal Mail’s operations and working practices agreed under the 2007 pay and modernisation agreement to be delivered. Endless industrial relations problems and disputes are damaging the company and their ability to compete.”
The Government has made available £3.5 billion of funding to Royal Mail since 2001. This includes commercial loans of £1.2 billion to support modernisation.
Strike action is currently planned throughout the London area. In the last months there have been postal strikes throughout London plus in Ipswich, Edinburgh, Alloa, Grangemouth, Irvine, Cowdenbeath, Dunfermline, Broxburn and Bathgate.
In 2007 60 per cent of days lost in the whole UK economy through industrial action were accounted for by Royal Mail, a total of 600,000 days lost.
