More postal strikes possible
March 4, 2008
Yesterday the BBC reported that we could be facing yet more postal strikes in the coming months as Unions advise their members not to accept the latest pensions proposals. A consultative ballot is being held by Unions, which could lead to a strike ballot, and more disruptions to the service if the majority vote to strike. (read more information on the rules relating to industrial action here).
This issue has been going on for ages now – since last summer a number of postal strikes have been organised over pay, pensions and the modernisation agenda which will mean the losses of thousands of jobs.
Royal Mail is proposing changing the pension scheme to a career-average scheme rather than the current expensive final salary scheme, a change that has already been made by other firms seeking to reduce the huge gaps in funds in pension schemes, but one which will reduce the amount most workers are entitled to on retirement. The company has been consulting with employees on this and the modernisation changes, but according to Unite, the postal managers’ union, the consultation has been “a complete sham” as there have not been many changes to the earlier proposals as a result of the consultation.
Royal Mail is having to modernise due to the increasing competition from other postal companies since the liberalisation of the postal service in 2005. Royal Mail has lost a great deal of business to other companies, and due to these pressures is looking to introduce new working methods and technology to improve productivity and reduce the number of workers needed.
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