Talks aim to head off new Royal Mail strike

Mon Sep 24, 2007 10:44am BST
 
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By Andrew Hough

LONDON (Reuters) - Royal Mail and a second union are set to enter crisis talks on Monday in a bid to prevent a potentially crippling strike over controversial pension plans.

Royal Mail is already embroiled in turmoil with its 130,000 employees, which includes a row with its postal workers over pay and working conditions.

Now the Unite Union, which represents 12,000 postal managers, has threatened industrial action of pension proposals.

Unite claims the proposals will give the company a 1.5 billion pound windfall at the expense of workers, in a plan it has dubbed the "great mail robbery".

Royal Mail has argued that without dramatic reforms it will not be competitive.

The proposed changes include closing the scheme to new employees, raising the retirement age five years to 65 and "banking" current benefits and index-linking them.

The latest threat comes after the Communication Workers Union, called two 48-hour strikes next month in response to what it labelled as "draconian and destructive proposals on pay and business changes".

Unite's national officer, Paul Reuter, said failure to resolve the issues at Monday's meeting would lead to strikes.  Continued...

 
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