Yahoo Finance Christmas deliveries at risk as Royal Mail prepares strike: What you need to know
The UK’s Christmas deliveries could be hit this year after postal workers yesterday voted to strike for the first time since the business was privatised four years ago.
Why is a strike being threatened?
The planned industrial action centres around a bitter pay and pensions dispute. The Communication Workers Union (CWU) said it was sparked by Royal Mail‘s “attack on the pension rights of hard-working postmen and women” as well as its “refusal” to engage over pay, working hours, future job security and the need to improve and grow the service.
When is the strike likely to hit?
If the strike goes ahead it could threaten pre-Christmas deliveries. Workers could walk out on “Black Friday” in late November – the day when many retailers start seasonal pre-Yuletide sales. The first rumoured two-day strike could hit on 24 and 25 November.
MORE: Royal Mail workers are being paid by gangs to steal bank cards
But Royal Mail said: “There are no grounds for industrial action. We want to reach an agreement.”
It believes the dispute is subject to legally binding contractual resolution procedures which are likely to last until Christmas and maybe beyond.
“These dispute resolution procedures must be followed. The union cannot take industrial action until they have been completed,” Royal Mail said.
Are all postal workers supporting the strike?
The CWU said 73.7% of its 110,000 members voted in its strike ballot yesterday, with 89% backing a strike. The union said its postal executive will meet later this week to work out the potential strike dates.
What’s behind the row?
The row has been building since Royal Mail announced it will close its current defined benefit pension scheme in March 2018. The company claimed that if it did not, its current annual contribution of £400m a year would eventually rise to £1.26bn.
MORE: Black Friday tips: How to shop for the best fridges and washing machines
Royal Mail has subsequently offered workers new defined contribution-based schemes with the aim of keeping its contributions at about £400m. All have been rejected.
Is Royal Mail playing fair with workers?
Nathan Long, senior pension analyst at Hargreaves Lansdown, said Royal Mail’s decision to close its DB scheme is in line with many employers’ attempts to cap the uncertainty of future pension payments.
MORE: Aldi’s packed luxury Christmas hamper is back – and it’s under £100
“Two replacement schemes have been tabled. Both offer generous pension contributions in comparison to most employers,” he said. “While the pension benefits are undoubtedly being watered down, a first-class retirement is still available for staff who maintain membership throughout their working life.”
What’s the union view?
Dave Ward, the CWU general secretary, thinks Royal Mail is letting workers down. He said: “Our members are under attack. They are being asked to work faster, harder and cheaper while losing benefits. This has nothing to do with driving growth and innovation. It is all about a lack of forward thinking and asset stripping.”
Terry Pullinger, the CWU’s deputy general secretary, postal, added: “This massive failure in trust has created a break down in relationships and a toxic environment where working together to solve difficult problems has become almost impossible.”
