Royal Mail loses �750,000 a day

The Communication Workers Union (CWU) is threatening the first national postal strike in seven years.

The Royal Mail says the pay offer is a 14.5% increase, but the union says that is a "dishonest" claim.

About 160,000 members of the CWU will vote over the next few weeks on whether to stage a series of walk-outs.

The dispute centres on this year's wage offer, which the CWU says has more "strings" than a philharmonic orchestra.

'Job cuts'

The union says the Royal Mail was not being straight with workers when it said the pay deal was worth 14.5% over 18 months.

If employees vote for strike action, it will be the consumers that lose out Peter Carr, Postwatch

It says the only definite money on offer was 3% from October and a further 1.5% next April.

The union also said it was being asked to agree to 30,000 job cuts, which it said would "destroy" postal service.

CWU Deputy General Secretary Dave Ward said: "The Royal Mail is being dishonest by claiming they are offering 14.5%.

"If that was the case, the union would be biting their hand off."

A spokesman for the Royal Mail said the offer was worth 14.5% on pensionable pay and was linked to "simple" productivity changes.

Postwatch - the watchdog for the postal service - added that the offer included a move from a six day week to five days.

Chairman Peter Carr told BBC News 24: "If employees vote for strike action, it will be the consumers that lose out."

Productivity

Royal Mail said the latest offer contained fewer conditions than one recommended for acceptance earlier in the year by the CWU leadership.

The Royal Mail was still losing around �750,000 a day, the spokesman added, and could only afford the pay offer if it improved productivity and avoided strikes.

The union is being threatened with legal action by the Royal Mail over a leaflet produced by its London branch which claimed chairman Allan Leighton had awarded himself a "big, fat pay check and �3m bonus".

Mr Leighton earns around �180,000 in pay and bonuses.

Mail train

Meanwhile Business Post, an independent parcels delivery firm, has confirmed it is in talks to save some mail train services, which will shortly be axed by the Royal Mail.

The firm could safeguard some of the 517 jobs, under threat following the Royal Mail's decision to switch from rail to road transport.

Business Post said it was in preliminary discussions with rail freight operator EWS about setting up a limited high speed mail service between London and Scotland.