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  5. Union is plotting to bankrupt us, says Royal Mail

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Union is plotting to bankrupt us, says Royal Mail

Negotiations between Royal Mail and the Communications Workers' Union have failed, raising fears of a new wave of postal strikes. Photo: JULIAN SIMMONDS

Royal Mail bosses have accused striking workers of plotting to bankrupt the company and return it to the taxpayer's hands amid a deepening scandal following the failed talks.

Directors slammed union leaders for being » … 39;becomes more comfortable' at Administrative Risk» during discussions to agree on a new pay deal, according to a letter leaked to the Telegraph.

This comes after talks with the Communications Workers Union (CWU) broke down early Wednesday morning, which paved the way for a new wave of strikes that risk delaying supplies for millions of households.

Sources said that Royal Postal Management is increasingly concerned that the CWU wants to run the business.» The UK shipping division has been taken over by administration in the hope that it will be nationalized as a temporary measure, potentially avoiding the drastic overhaul needed to make the company profitable.

In a letter sent by the directors of Royal Mail to CWU General Secretary Dave Ward late last week, the union warned that nationalization is not guaranteed if the strikes put unbearable pressure on the company's finances.

Instead, the court will appoint a public administrator, who will then “will have to take a number of actions that none of us want to see.”

It is likely that the administration will be a short-term solution when the Public Insolvency Service unilaterally introduces reforms to balance Royal's books Mail.

The letter said: “It is important to make it clear to everyone that if our finances come under greater pressure, the legislation does not provide for renationalization, but instead for a system called special administration.”

“Application for a postal order administration can only be filed by the government, or Ofcom with the consent of the government.

“This is a scenario that 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 employees.»

A CWU spokesperson said: “The only people who have put Royal Mail in financial trouble are those at the top of the business.

“Whether nearly £600 million is handed over to shareholders or millions are spent on top management' bonuses, throwing money at the workers of the strikebreaking agencies or offering bonuses for bribes to local managers, this company is extremely badly run. In any other industry, they would have been fired by now.”

The collapse of the talks followed the CWU's rejection of a new 10 per cent wage deal.

Union barons were also offered a lump sum for workers of £500 or £1,500 depending on the timing. pay raises.

In addition, 115,000 CWU postal members received a profit-sharing offer in an agreement that was supposed to lead to sweeping reforms in the workplace.

Royal Mail chief executive Simon Thompson promised to modernize the postal service. Photo: Geoff Gilbert

A Royal Mail spokesman said: “After 11 months of negotiations, including through the mediation of Sir Brendan Barber and Akas, we are deeply concerned that our negotiations with CWU ended without a contract.

“We remain committed to reaching an agreement with CWU. We have been clear throughout the dispute that not transforming our network and ways of working is not an option for a business that is losing over £1 million a day. In the interests of business, our customers, and the preservation of our mail carriers' jobs, the change can no longer be delayed.» an existential struggle for the future of the postal monopoly.

Royal Mail, led by chairman Keith Williams and chief executive Simon Thompson, is now expected to begin implementing reforms such as forcing employees to complete rounds faster and automating the sorting process.< /p>

The only change Royal Mail can't deliver without union consent is to force employees to start work later so delivery can take place over a longer period of the day.

An increase in Sunday services is likely to result in an increase in the number of employees of the agency.

A CWU spokesperson said: «Negotiations between the CWU and Royal Mail Group ended … without agreement.

«Progress has been made in several areas, and last night the union signaled that we ready to continue negotiations today and tomorrow to finalize the agreement. This proposal has been reiterated by the company.

«We will be consulting with the post office of the union later today and will consider all available options regarding our next steps.

«The company has published some aspects of its latest proposal directly to employees, arguing that the main stumbling block is the conditions of new entrants. It's not true"

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