National post strike 'inevitable'

A national postal strike by 150,000 staff is now "almost inevitable", say union sources.

The Communication Workers Union (CWU) is refusing to backtrack over demands for a five per cent pay increase - an inflation-busting rise which Consignia insists it cannot afford to meet.

A CWU source close to the negotiations said a strike by up to 150,000 staff in Consignia's Royal Mail, probably from the end of the month, appears "almost inevitable".

A ballot vote in favour of the first national mail strike for almost six years would be disastrous for Consignia. It faces heavy fines and licenses being handed out to new rivals if its performance fails to improve below current substandard levels.

The main force behind the CWU's intransigence is deputy general secretary John Keggie. He is described as "inflexible" when it comes to industrial confrontations.

The CWU has observed a no-strike agreement in recent months in an attempt to improve performances, particularly in London, where up to one in five first-class letters are late in many areas.

Consignia is shedding up to 30,000 jobs as part of a £1.2 billion cost-cutting measure.