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.