Postal unions to decide on strike

Postal union leaders meet today to decide whether to call a national mail strike over pay.

The meeting of the national executive of the Communication Workers Union follows an overwhelming vote in favour of industrial action by Royal Mail staff.

Options to be discussed include 24-hour strikes, an overtime ban or a refusal to work Saturdays.

However, union sources indicated last night they may decide to continue talks under the threat of strike action.

Royal Mail's holding company-Consignia, which is having to make cuts of £1.2 billion, faces losing business if its performance slips further. The industry regulator Postcomm is threatening to hand out licenses to rival operators if service levels deteriorate.

Royal Mail has offered a two per cent increase, with a further 0.5 per cent if customer quality of service targets were met, under a package worth more than £60 million. It says it cannot afford the five per cent demanded.