Skip to content or view mobile version

Home | Mobile | Editorial | Mission | Privacy | About | Contact | Help | Security | Support

A network of individuals, independent and alternative media activists and organisations, offering grassroots, non-corporate, non-commercial coverage of important social and political issues.

Post workers face political struggle against Royal Mail/Labour government

Socialist Equality Party (Britain) | 11.10.2007 15:57 | Social Struggles | Workers' Movements | Liverpool

Unofficial strike action broke out at several postal sorting offices across the UK early Wednesday morning in response to deliberate provocations by Royal Mail.

The company’s actions are driven by its efforts to impose significant cuts in jobs and pension rights, as well as flexible working that will leave postal workers at the beck-and-call of management.

Some 130,000 postal workers were due to return to work at 3:00 a.m. Wednesday morning, following the second official 48-hour strike in one week. The strikes, which have paralysed the UK’s postal service, were called after Royal Mail made clear it would not back down on its demands for “total flexibility,” with the loss of tens of thousands of jobs coupled with massive cuts in workers’ pensions.

But postal workers in some sorting offices returned to find that management had arbitrarily changed their work shifts. Those reporting for their shift at 5:00 a.m. were told to go home as they would not be able to start until 6:00 a.m.

Unofficial stoppages at district offices in Liverpool soon spread to the main sorting office at Copperas Hill. Action also took place at branches in east and south London, Lancaster and Glasgow.

The company’s actions are driven by its efforts to impose significant cuts in jobs and pension rights, as well as flexible working that will leave postal workers at the beck-and-call of management.

Some 130,000 postal workers were due to return to work at 3:00 a.m. Wednesday morning, following the second official 48-hour strike in one week. The strikes, which have paralysed the UK’s postal service, were called after Royal Mail made clear it would not back down on its demands for “total flexibility,” with the loss of tens of thousands of jobs coupled with massive cuts in workers’ pensions.

But postal workers in some sorting offices returned to find that management had arbitrarily changed their work shifts. Those reporting for their shift at 5:00 a.m. were told to go home as they would not be able to start until 6:00 a.m.

Unofficial stoppages at district offices in Liverpool soon spread to the main sorting office at Copperas Hill. Action also took place at branches in east and south London, Lancaster and Glasgow.

Royal Mail denounced the “unlawful and unofficial strike action” and demanded that the Communication Workers Union (CWU) condemn it. The CWU dutifully complied, with a spokesman declaring, “We are not supporting this action at all, and we are encouraging people to get back to work and support the official action which starts next week.”

The CWU had called a series of rolling strikes for next week after eight days of talks between it and Royal Mail ended without agreement. The threat of further strikes caused a furore in the media, attacking “greedy” and “selfish” postal workers, and a war of words between Royal Mail and the CWU, with the company’s chief executive, Adam Crozier, describing the union’s description of the new changes as “slavery” as “cobblers.”

Denouncing “restrictive practices” as incompatible with “the modern world,” Crozier complained that Royal Mail staff were paid 25 percent more than workers in other postal firms, but were less efficient. “All we are asking is that people work the 37 hours, 20 minutes, for which they are paid,” he claimed.

In reality, Royal Mail is demanding far more. It is seeking to rip up existing contracts so that it can determine who works where and when.

“Total flexibility” will mean managers are able to change shift times at will, and the company has the right to permanently change working hours with just seven days’ notice. The aim is the introduction of annualised hours, in which workers can be called when necessary for shifts of up to 13 hours in duration, without overtime, and sent home early during quieter periods.

Such changes, combined with the introduction of digitalised technology, will lead to the loss of at least 40,000 jobs. Managers will also be able to determine who gets what duties, regardless of training and experience.

In return, workers have been offered a two-year below-inflation pay deal of 6.7 percent.

Behind the bitter war of words between Crozier and the CWU, the union has gone a long way towards acceding to the conditions demanded by Royal Mail. Crozier said that the talks had been near to agreement on pay and pensions, with only the issue of flexibility outstanding.

A statement by the union seems to bear out this claim. “Real progress has been made in many areas,” it said, but denied that a final agreement had been reached. That any progress was made should be of extreme concern to postal workers. Royal Mail has made plain it has no intention of backing down, so any concessions can only have been made on the part of the union.

The implications are dire. Royal Mail’s demands on pensions amount to legalised robbery. It plans to close its final salary pension scheme to all members; transfer existing and new staff to a scheme linked to “career average” earnings; and raise the standard retirement age from 60 to 65 from 2010.

Royal Mail maintains that the move is necessary in order to tackle the £6.5 billion deficit in its existing scheme. But this is due in no small part to the company having earlier taken a 17-year contribution holiday. Under the new plan, it is estimated that a 30-year-old employee with 10 years’ service will lose almost half his or her pension entitlement—a fall to £8,764 per year from £15,260.

The company’s decision is virtually unprecedented. While many firms have closed their final salary schemes, few have done so to existing members. The move has implications far beyond postal staff. No doubt emboldened by Royal Mail’s actions, Siemens announced it would also end its final pension scheme to both existing and new members.

This takes place amidst reports that the recent global market turmoil has seen the collective surplus of almost 8,000 pension schemes cut in half—from £51 billion in July to £27 billion in August. Workers bear 100 percent of the investment risk in the new schemes. The advisory company Mercer has said that “most employees will get more pension through state benefits than their occupational plan, which may come as a surprise to many.”

For its part, the Unite trade union, which represents 12,000 managerial staff, has already struck a deal with Royal Mail on a 2.5 percent pay rise, an increase in the retirement age from 60 to 65 and the closure of the existing pension scheme to new members.

Making the cynical claim that by restricting pension changes only to new employees, the union had protected “£1.5 billion worth of pension benefits for Royal Mail staff,” a Unite spokesman said, “We will support it [the pension changes], rather than fight it. It is the right thing to do given the state of the business.”

Not only has this treachery enabled the company to make important inroads against Unite’s own members. It has, in the words of the Times, enabled Royal Mail to head “off war on two fronts,” after managers had threatened strike action over pensions that would have coincided with the recent national stoppages.

It is a matter of speculation as to whether the CWU’s claim of “progress” in the recent negotiations is in reference to a similar agreement on existing pensions. But given that it shares Unite’s priorities of the “state of the business,” any such agreement could be revoked at a later date. And should further cuts be demanded, both unions would collaborate with management—provided that they succeed in demobilising opposition in the workforce.

Wednesday’s provocative actions by Royal Mail confirm that, for its part, the company is determined to up the ante and to mount a wide-ranging offensive against postal workers in order to achieve its ultimate objective—privatisation.

This week, the European Union (EU) finalised proposals for the deregulation of postal service across Europe from 2011, opening the way to a competitive scramble across the continent.

The EU’s liberalisation package has led to increased demands from business leaders that the government bite the bullet and sell off Britain’s postal service. The Financial Times wrote, “Royal Mail needs fundamental change that will not happen as long as it stays in the public sector.... In the meantime, commercial realities mean modernisation cannot be put off.”

Writing in the Guardian, Scottish Socialist Party member and professor of industrial relations Gregor Gall said that Royal Mail is set on “reforming confrontation,” creating the conditions whereby it can impose “management diktat” and compete with the private-sector companies by putting the “workers, and their terms and conditions (pay, hours and pensions), under the cosh.”

But while pointing out that the government, as the single shareholder in Royal Mail, “could have prevented or stopped this dispute at any time it wished,” Gall claimed that Labour “does not want to intervene in the dispute to resolve it, for that would mean tipping the scales in favour of the CWU—something it and Royal Mail do not want”.

The CWU’s aim in response, Gall said, must be to “increase its leverage on the government to intervene to end the dispute on terms favourable to it” through the re-imposition of the “public-service ethos.”

Gall’s argument deliberately echoes that of CWU general secretary Billy Hayes, who complained that government money is “being squandered” by a company “intent on privatisation,” and that government abstention was encouraging corporate “wreckers” who have “no public service values.”

The attempt to draw a distinction between the company and Labour is just so much sand in postal workers’ eyes.

The Labour government leads the “wreckers.” It is the party of big business whose sole aim is the redistribution of ever more wealth away from working people to the rich through the dismantling of public services and cuts in wages and conditions.

There is no “public-service ethos” that Labour, with sufficient pressure, can be made to reimpose. Besides financing Royal Mail’s plans, and making privatisation of public services its own political objective, Brown intervened directly against postal workers on Monday, denouncing their strike as an “unacceptable disruption” and demanding an immediate return to work.

Postal workers are in a fight to the finish. Nothing can be defended unless they break out of the straitjacket being imposed by the CWU. What is required is an independent political and industrial offensive against not just Royal Mail, but its sponsors in parliament.

To mount such a struggle demands the creation of rank and file committees that will reach out to workers faced with similar attacks throughout Britain and to postal workers in Europe who also face the threat of privatisation.

Socialist Equality Party (Britain)
- Homepage: http://www.wsws.org/

Comments

Display the following comment

  1. Cripple the news media — Cash
Upcoming Coverage
View and post events
Upcoming Events UK
24th October, London: 2015 London Anarchist Bookfair
2nd - 8th November: Wrexham, Wales, UK & Everywhere: Week of Action Against the North Wales Prison & the Prison Industrial Complex. Cymraeg: Wythnos o Weithredu yn Erbyn Carchar Gogledd Cymru

Ongoing UK
Every Tuesday 6pm-8pm, Yorkshire: Demo/vigil at NSA/NRO Menwith Hill US Spy Base More info: CAAB.

Every Tuesday, UK & worldwide: Counter Terror Tuesdays. Call the US Embassy nearest to you to protest Obama's Terror Tuesdays. More info here

Every day, London: Vigil for Julian Assange outside Ecuadorian Embassy

Parliament Sq Protest: see topic page
Ongoing Global
Rossport, Ireland: see topic page
Israel-Palestine: Israel Indymedia | Palestine Indymedia
Oaxaca: Chiapas Indymedia
Regions
All Regions
Birmingham
Cambridge
Liverpool
London
Oxford
Sheffield
South Coast
Wales
World
Other Local IMCs
Bristol/South West
Nottingham
Scotland
Social Media
You can follow @ukindymedia on indy.im and Twitter. We are working on a Twitter policy. We do not use Facebook, and advise you not to either.
Support Us
We need help paying the bills for hosting this site, please consider supporting us financially.
Other Media Projects
Schnews
Dissident Island Radio
Corporate Watch
Media Lens
VisionOnTV
Earth First! Action Update
Earth First! Action Reports
Topics
All Topics
Afghanistan
Analysis
Animal Liberation
Anti-Nuclear
Anti-militarism
Anti-racism
Bio-technology
Climate Chaos
Culture
Ecology
Education
Energy Crisis
Fracking
Free Spaces
Gender
Globalisation
Health
History
Indymedia
Iraq
Migration
Ocean Defence
Other Press
Palestine
Policing
Public sector cuts
Repression
Social Struggles
Technology
Terror War
Workers' Movements
Zapatista
Major Reports
NATO 2014
G8 2013
Workfare
2011 Census Resistance
Occupy Everywhere
August Riots
Dale Farm
J30 Strike
Flotilla to Gaza
Mayday 2010
Tar Sands
G20 London Summit
University Occupations for Gaza
Guantanamo
Indymedia Server Seizure
COP15 Climate Summit 2009
Carmel Agrexco
G8 Japan 2008
SHAC
Stop Sequani
Stop RWB
Climate Camp 2008
Oaxaca Uprising
Rossport Solidarity
Smash EDO
SOCPA
Past Major Reports
Encrypted Page
You are viewing this page using an encrypted connection. If you bookmark this page or send its address in an email you might want to use the un-encrypted address of this page.
If you recieved a warning about an untrusted root certificate please install the CAcert root certificate, for more information see the security page.

Global IMC Network


www.indymedia.org

Projects
print
radio
satellite tv
video

Africa

Europe
antwerpen
armenia
athens
austria
barcelona
belarus
belgium
belgrade
brussels
bulgaria
calabria
croatia
cyprus
emilia-romagna
estrecho / madiaq
galiza
germany
grenoble
hungary
ireland
istanbul
italy
la plana
liege
liguria
lille
linksunten
lombardia
madrid
malta
marseille
nantes
napoli
netherlands
northern england
nottingham imc
paris/île-de-france
patras
piemonte
poland
portugal
roma
romania
russia
sardegna
scotland
sverige
switzerland
torun
toscana
ukraine
united kingdom
valencia

Latin America
argentina
bolivia
chiapas
chile
chile sur
cmi brasil
cmi sucre
colombia
ecuador
mexico
peru
puerto rico
qollasuyu
rosario
santiago
tijuana
uruguay
valparaiso
venezuela

Oceania
aotearoa
brisbane
burma
darwin
jakarta
manila
melbourne
perth
qc
sydney

South Asia
india


United States
arizona
arkansas
asheville
atlanta
Austin
binghamton
boston
buffalo
chicago
cleveland
colorado
columbus
dc
hawaii
houston
hudson mohawk
kansas city
la
madison
maine
miami
michigan
milwaukee
minneapolis/st. paul
new hampshire
new jersey
new mexico
new orleans
north carolina
north texas
nyc
oklahoma
philadelphia
pittsburgh
portland
richmond
rochester
rogue valley
saint louis
san diego
san francisco
san francisco bay area
santa barbara
santa cruz, ca
sarasota
seattle
tampa bay
united states
urbana-champaign
vermont
western mass
worcester

West Asia
Armenia
Beirut
Israel
Palestine

Topics
biotech

Process
fbi/legal updates
mailing lists
process & imc docs
tech