Royal mail hot by strike threat

The reform of the troubled Royal Mail Group is in jeopardy after its
decision to outsource its cash handling and distribution business sparked plans
for strike action by staff.

The Communication Workers Union (CWU) claims the partnership working
relationship with the company to restore it to profitability is in danger of
collapse if it does not scrap plans to outsource the department.

The union is today finalising strike details after 3,000 cash handlers voted
overwhelmingly in favour of action. The union will also consider balloting all
staff on industrial action.

Royal Mail Group (RMG), which is losing more than £1m a day, entered into
joint working agreement with the CWU after a report last year slammed its
industrial relations culture.

CWU general secretary, Billy Hayes, told Personnel Today the reform of the
Post Office rests on the issue.

A spokesman for the RMG said government changes to unemployment benefit
payments mean it must restructure.

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