Yahoo Finance Union is plotting to bankrupt us, says Royal Mail
Royal Mail bosses have accused striking workers of plotting to bankrupt the company and force it back into the hands of the taxpayer, amid a deepening row after talks collapsed.
Directors criticised union leaders for saying they were “'becoming more comfortable' with the risk of administration” during discussions to agree a new pay deal, according to a letter leaked to the Telegraph.
It comes after negotiations with the Communication Workers Union (CWU) collapsed in the early hours of Wednesday morning, paving the way for a fresh wave of walkouts that risk delaying deliveries for millions of households.
Sources said that Royal Mail management is increasingly concerned the CWU wants to drive the businesses' UK delivery arm into administration in the hope it would be nationalised as an interim measure, potentially avoiding a radical overhaul required to make the company profitable.
The letter – sent by Royal Mail directors to CWU general secretary Dave Ward at the end of last week – warned the union that nationalisation is not guaranteed if strikes put the company's finances under unbearable pressure.
Instead, a court would appoint a government administrator which would then “have to take a series of actions that none of us want to see happen”.
It is likely that the administration would be a short-term fix in which the Government’s Insolvency Service would unilaterally ram through reforms to balance the books at Royal Mail.
The letter said: “It is important that everyone is clear that, if our finances come under worse pressure, the legislation does not provide for re-nationalisation, but instead a system called special administration.
“An application for a postal administration order can be made only by government, or by Ofcom with the consent of government.
“That is a scenario the company is working tirelessly to avoid. We want to protect the business from further damage and secure the future of Royal Mail and its workforce.”
A spokesman for the CWU said: “The only people who have put Royal Mail in a difficult financial position are those at the top of the business.
“Whether handing almost £600m to shareholders, trousering millions in senior executives' bonuses, throwing away money on strike breaking agency workers or offering bribery bonuses to local managers, this company has been grossly mismanaged. In any other industry they would all have been dismissed by now.”
The collapse of talks followed the rejection of a new 10pc pay deal by the CWU.
Union barons were also offered a lump sum for workers of either £500 or £1,500 was tabled depending on the timing of the wage increases.
In addition, the CWU’s 115,000 postal members were offered a profit share arrangement as part of an agreement that would lead to sweeping workplace reforms.
A spokesman for Royal Mail said: “After 11 months of talks, including mediation by Sir Brendan Barber and Acas, we are deeply concerned that our talks with CWU have concluded without an agreement.
“We remain committed to reaching an agreement with the CWU. We have been clear throughout the dispute that not transforming our network and working practices is not an option in a business losing more than £1 million a day. In the best interests of the business, our customers, and the job security of our postmen and women, change cannot be delayed any further.”
The breakdown of talks thrusts Royal Mail and union counterparts into virgin territory in an existential fight over the future of the postal monopoly.
It is expected that Royal Mail, led by chairman Keith Williams and chief executive Simon Thompson, will now begin imposing reforms such as forcing employees to complete rounds more quickly and automating the sorting process.
The only change that Royal Mail cannot make without union consent is to force staff to begin work later so that deliveries can be made over a longer period of the day.
An increase in Sunday services will likely result in a greater number of agency staff being used.
A spokesman for the CWU said: “Negotiations between the CWU and Royal Mail Group concluded... without agreement.
“There has been progress in several areas, and the union made it clear last night that we are willing to continue negotiations today and tomorrow to finalise an agreement. This offer has been reiterated to the company.
“We will be consulting with the union’s postal executive later today and considering all available options with regards to our next steps.
“The company has published selected aspects of their latest offer directly to employees, claiming that the main sticking point is new entrants’ terms and conditions. This is not true."
