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Peace talks between the Royal Mail and the Communication Workers Union (CWU) over pay rates have broken down again as each side accuses the other of refusing to give ground.
Adam Crozier, Royal Mail chief executive, has claimed unions are 'going backwards' and are being unrealistic in their demands.
Ray Ellis, a senior CWU official, said that the Royal Mail was not prepared to move 'one iota' and attendance at talks was 'for window dressing purposes only'.
Royal Mail claims its pay offer is worth 14.5 per cent over 18 months, which would cost the company £340m a year.
The CWU says the deal only amounts to a rise of 4.5 per cent, with the rest tied to productivity improvements.
