16th Oct 2013 15:59
LONDON (Alliance News) - Royal Mail PLC workers will go on strike November 4 unless their demands for a pay rise, better terms and conditions and job protection are met, the CWU union said Wednesday after tens of thousands of workers at the newly privatised postal service voted in favor of industrial action.
The news is a blow for the 501 year-old company, which has seen its value soar in the days since its stock market listing Friday. It could also be a blow for Royal Mail competitors UKMail Group PLC and TNT UK, as the union said it would seek a further mandate from its members to boycott competitors' mail.
The CWU had balloted 115,000 workers and said nearly 72,000 voted, with 78% voting for a strike and 22% against.
In a statement, the CWU said it would give two weeks for its demands to be met or members would walk out for a day November 4, possibly followed by further strikes after that.
Royal Mail said it was very disappointed by the strike vote, especially as it will come in the run up to Christmas, its busiest period. It said it would do all it can to minimise the impact on mail services.
The company pointed out that although 78% of union members that replied to the ballot had voted for a strike, only 63% had turned out, meaning that 51% of the union membership had chosen to vote against industrial action or abstain.
Royal Mail shares have soared since the company listed last Friday. The stock is trading at 477 pence a share Wednesday afternoon, compared with the listing price of 330 pence, which was right at the top end of the listing price range.
Staff were allowed to apply for free shares in the offering and were awarded 725 shares each, meaning they are sitting on a GBP3,458 windfall. However, this doesn't seem to have prevented a large number objecting to the deal.
"Postal workers have spoken very clearly that they care about their jobs, terms and conditions far more than they care about shares," CWU Deputy General Secretary Dave Ward said.
"What we want is a groundbreaking, long term, legally binding agreement that not only protects postal workers' job security, pay and pensions - but will also determine the strategy, principles and values of how the Royal Mail Group will operate as a private entity," Weir said.
"This means there will be no further breakup of the company, no franchising of individual offices or delivery rounds, no introduction of a cheaper workforce on two-tier terms and conditions and no part time industry," he added.
Royal Mail said it has offered staff an 8.6% increase in pay, allowances and overtime payments over three years, plus a GBP300 lump sum in year one. It said employees who choose not to strike will get that lump sum in December.
By Steve McGrath; [email protected]; @stevemcgrath1
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