Royal Mail workers have voted by 78% for industrial action in their ongoing pay dispute and aone-day all-out strike will take place on November 4 if no deal is reached by then, it was
announced this afternoon.The Communication Workers Union (CWU) said it is allowing two weeks to reach an agreement but aone-day all-out strike “will take place” on Monday 4th November if no agreement is concluded bythat date. Further action is under consideration.
The CWU said 63% of its 115,000 members at the now-privatised postal operator, including atparcels unit Parcelforce, took part in the strike ballot, with 78% voting ‘yes’ to strike action.The ballot came after the union rejected a three-year phased 8.6% pay rise offer and changes toworking conditions.
The union also announced a new ballot that would enable postal workers to boycott competitors’mail, to supplement the strike action.
Dave Ward, CWU deputy general secretary, said: “Postal workers have spoken very clearly thatthey care about their jobs, terms and conditions far more than they care about shares. The stakeshave become much higher for postal workers since privatisation making this ballot more importantthan ever. Postal workers will not be the people who pay for the profits of private operators andfaceless shareholders.
“We have said from the beginning that we want an agreement and we still do. The question now iswhether this privatised Royal Mail still wants an agreement. We have offered the company a two-weekperiod to reach an agreement and having already had many hours of negotiation, this is achievableif there is a will. The clock is ticking for both sides and we need Royal Mail to work to reachagreement before this deadline.
“What we want is a groundbreaking, long-term, legally binding agreement that not only protectspostal workers’ job security, pay and pensions – but will also determine the strategy, principlesand values of how the Royal Mail Group will operate as a private entity,” he said. “This meansthere will be no further breakup of the company, no franchising of individual offices or deliveryrounds, no introduction of a cheaper workforce on two-tier terms and conditions and no part timeindustry.”
On the separate ‘competitor boycott’ ballot, Ward added: “On top of a strike, the union willseek a mandate from members to carry out the boycott of competitors’ mail. In law, this needs aseparate ballot and we will commence the procedures for this at the earliest opportunity. Theboycott will be used to supplement strike action. Royal Mail needs to reach an agreement with usnow and avoid the consequences of these two types of action from postal workers.”
Royal Mail had not commented on the strike vote result as CEP-Research went to press.
Earlier today the company confirmed that more than 100 million free shares worth a total of £489million had been allocated for some 150,000 employees as part of the privatisation. Each eligiblefull-time employee is entitled to 725 free shares with an initial market value of £3,545.25, thecompany said. Employees were allocated 10% of company shares as part of the IPO. They are obligedto keep them for three years.
Meanwhile, the political dispute over the IPO offer price, and whether Royal Mail wasundervalued in the massively over-subscribed flotation, has taken another turn with news that aparliamentary inquiry will be held next month. Business Secretary Vince Cable and investment bankLazard will be summoned before a parliamentary committee to answer questions.
The Royal Mail share, which started trading at 330 pence last Friday, fell back about 3.3% to472 pence today (Wednesday) after closing at 489 pence yesterday in the first day of full tradingby private investors.
