TO: ALL BRANCHES
Dear Colleague
Keep the Post Public Campaign
In light of yesterday’s announcement by Government, as attached, which confirmed that plans for privatisation are shelved, we are setting out the Union’s position with regard to the policies contained in Emergency Motions 2 and 3, from Annual Conference.
The Government’s decision to step back from privatisation is very welcome and good news for everybody who believes in both the values of the Universal Service and the social obligations that underpin the whole of the Royal Mail Group.
However, by restating the Government’s position that the Postal Services Bill was an all or nothing package and that Government will not pick up the pensions deficit or move forward regulation means the future remains uncertain for the public, our members, the service and the company.
Inertia is not the answer; the Government must accept its responsibilities.
The CWU has consistently stated that equally crucial to the task of building a modern and successful Royal Mail is securing a satisfactory resolution to pensions, modernisation and regulation. We will not allow the Government to walk away from their responsibilities and we will continue with our campaign, we have now entered a new phase. As part of this all Branches must continue to promote our document “A Fresh Start for Royal Mail” which outlines a credible alternative to Government inertia by putting forward solutions. We will also be examining new tactics in this next phase.
Furthermore, in our ongoing dialogue with Government we will continue to prioritise the need for Government to urgently facilitate negotiations on modernisation with Royal Mail through our offer of a 3 month moratorium on industrial action and managerial executive action.
Unfortunately, Royal Mail’s response to yesterday’s announcement is that their plans are unaffected and that they will press on regardless. This is being backed up by increasing announcements of managerial executive action, more attacks on our members’ jobs, pay and conditions whilst ignoring their signed commitments to introduce change by agreement and negotiate terms that will be beneficial to our members.
The attitude of Royal Mail means the Union has no alternative other than to escalate industrial action and continue to move forward the terms of Emergency Motion 3.
We can confirm that further industrial action has been notified and this serious situation will be covered in an LTB later today.
We want to thank all our Branches, members, those MP’s, and our friends in the Lords who have supported us. Now our task is to build on the success of our campaign to date and resolve all outstanding issues.
Further information will be sent out in due course.
Yours sincerely
Billy Hayes Dave Ward
General Secretary Deputy General Secretary (P)
Summary
The Postal Services Bill would not be passed at this stage, the Government confirmed today. Postcomm would remain in operation and the Government would not take on the Royal Mail pension deficit.
In response to a question from Conservative Shadow Minister for Business, Innovation and Skills Lord Hunt of Wirral on the latest plans to secure the future of Royal Mail, Secretary of State for Business, Innovation and Skills Lord Mandelson said that market conditions had made it impossible to conclude the process of securing a strategic minority partner for Royal Mail on a basis that would provide benefits to the taxpayer.
He said that this meant the provisions of the Postal Service Bill would be delayed, but stressed that the Government remained committed to implementing the Hooper review findings at a later date.
In a supplementary question, Lord Hunt said that it was sad that this change had been announced first to the media. He said that this change had left the trustees of the Royal Mail pension plan in an impossible position, given the revaluation.
Responding, Lord Mandelson said that whatever spin was put on remarks made in interviews was a matter for that newspaper. He insisted that this announcement had been made in Parliament first.
The Government had thoroughly tested the market, he said. However, he said that economic circumstances had been very difficult, and stressed that he had said on Third Reading that the deal would only take place if beneficial for the taxpayer.
He then said that the Government had been clear on the circumstances under which it would take on the pension deficit, and again insisted that he would not cherry pick the measures in the Bill. When market conditions allow, the Government would return to the issue, he again insisted.
The Business Secretary was then asked a question on the need for urgent work on the pensions fund deficit and the need to address the ‘unbalanced’ work of Postcomm.
Lord Mandelson said that the £1bn annual payments in the pension fund were a huge problem. However, he argued that it would irresponsible to allow the taxpayer to take on this burden while other parts of the Bill went unaddressed.
He said that simply taking on pensions would not pass under EU state aid rules. On the regulator, he confirmed that Postcomm would remain operational for the time being, but insisted that it would not be asked to do its work in isolation.
Accused of undermining the arguments that had been made when the Postal Services Bill was advanced initially, the Business Secretary said that there would be no adverse effects on Post Offices as a result of this change.
He said that the need for reform had not gone away, and said that he expected the terms of the 2007 pay and modernisation agreement to be met.
Concluding his answers, Lord Mandelson said that he would look for evidence that there really had been progress within the management and the unions, and said that the long history of poor industrial relations in Royal Mail needed to end.