Royal Mail staff set to strike over pensions blow

Royal Mail workers are on the verge of an historic strike in a huge row over pensions that threatens to jeopardise attempts to modernise the company.

The Communication Workers Union was on Tuesday poised to announce that 110,000 members had voted for industrial action over Christmas – the first since the Royal Mail was privatised four years ago.

Union watchers see the case as the first major test of the Government’s controversial Trade Union Act, which requires strike ballots to have a 50% turnout.

The union was expected to say that it had passed this milestone easily as it fights plans to ditch postal workers valuable final salary pension schemes.

An analysis of the CWU’s own finances however suggests it might struggle to fund a strike for very long.

The latest report and account show it ran up a deficit last year of £5.4 million as expenses topped income. The CWU general fund is also £14.5 million in the red.

The accounts reveal that the CWU gave £500,000 to the Labour Party, which some in the delivery sector think ironic since the party hasn’t used Royal Mail for several years, preferring Whistle for its own deliveries.

The union accuses the Royal Mail of a "relentless" programme of cost-cutting to maximise profits.

The union accused the company of "unilaterally" closing its defined benefit, or final salary, pension scheme, with new entrants going into an "inferior" scheme which will leave them in "pensioner poverty".

CWU general secretary Dave Ward said: "Postal workers are under relentless pressure to work faster, harder and cheaper. This has nothing to do with driving growth and innovation, it's all about the tired old thinking of privatisation and asset-stripping.”

A Royal Mail spokesman said: “There are no grounds for industrial action. There is a very good deal on the table. Industrial action – or the threat of it – undermines the trust of our customers. We remain committed to reaching a negotiated agreement with the CWU on pay and pensions, and other issues we have been discussing.”