Royal Mail CEO Moya Green yesterday presented unregulated competition on the UK postal market asa potential threat to the six-day delivery obligation while the CWU union opposed privatisation at
its annual conference taking place in Bournemouth this week.As a key guest speaker at the conference of the Communication Workers Union, Greene listedsome positive aspects of postal liberalisation such as the pensions deficit solution and theimprovements to regulation. But she also stressed that from her perspective, the big challengeahead for Royal Mail is going to come from competitor companies, for example with TNT Post UKlaunching end-to-end delivery services.
She said the UK postal operator faced “a spiral of decline” implying that competitors should berestricted somewhat in their operations on the postal delivery market, especially in view of theend-to-end trial launched by TNT in London this month. Responding to the trial, Royal Mail alreadyexpressed its fears of “cherry-picking” by its biggest rival TNT last week.
In return, CWU’s Deputy General Secretary Dave Ward presented the possible privatisation ofRoyal Mail as a big threat to the industry. In his opening speech at the conference on Monday, hetold delegates: “Privatisation in any form is not in the interests of our members, the public orthe industry as a whole and it’s right that we’re reinvigorating our campaign against it.”
While continuing to fight against the sale, the union would protect its members’ rights “in casethe privateers do come into Royal Mail”, Ward added.
“We must be prepared to face anything that comes our way and we will argue against a break up ofRoyal Mail, for job security and the security of pensions to be legal obligations and, whatevercommercial environment we’re in, the CWU must remain central.”
CWU’s General Secretary Billy Hayes, stressed: “We’re sending a clear message that privatisationis neither necessary nor inevitable, but even if it does take place, we will be campaigning toensure that the Labour Party repeals it”. Discussing the earlier attempts by Allan Leighton andAdam Crozier to encourage the union to ‘buy-in’ to a share offer, Billy added: “We rejected sharesand kept fighting”.
The union opposed suggestions by Royal Mail for a “new governance model that embeds the union atall levels” claiming that this could compromise its independence.
