FIGHTING ROYAL MAIL SELL-OFF

www.rmt.org.uk :: january 2006 :: RMTnews 27 T he Communication Workers Union has been forced to fight on two fronts due to Royal Mail's privatisation agenda and the EU-backed ‘liberalisation’ programme of the postal regulator Postcomm. The union has done well in resisting the share ownership plans for privatisation proposed by Royal Mail chairman Allan Leighton. A high profile campaign spearheaded by CWU general secretary Billy Hayes has seen 208 MPs sign up to Early Day Motion Number 548 opposing the share ownership scheme. The 193 Labour MPs expressing strong opposition via the EDM represent a bulwark of opposition to any privatisation plans that Leighton or Alan Johnson, the Secretary of State for Trade and Industry, may hold. For the government to push through privatisation, it would require Tory support with more than 50 per cent of the Parliamentary Labour Party in opposition. Any such move would be politically untenable. Therefore, the more immediate threat appears to come from the EU’s ‘liberalisation’ agenda being pushed by Postcomm. EU RULES On January 1 2006, the UK market was fully opened up to competition, some three years ahead of the target date set by the EU for Europe-wide liberalisation under EU directive 97/67/EC. Some 14 companies have taken licences to cherry pick profitable parts of the newly liberalised market, though the union points out that few are interested in delivering social mail - meaning deliveries to the general public. "It is a widespread illusion that with liberalisation there will suddenly be a whole variety of companies putting up their own letter boxes on street corners. “Most are not interested in residential mail where there is no money to be made, they want to cherry pick the lucrative business contracts from Royal Mail," said Billy Hayes. The effect of allowing the private operators to grab such contracts will be to cut Royal Mail's income. This in turn could see the company looking to reduce its workforce and charge more for basic services via increases in stamp prices. "Few beyond those with vested interests seem aware that liberalising the service could mean a more expensive and less efficient service," said Billy. No private operator has provided an “end to end” service, but simply collected and sorted the mail prior to handing on to Royal Mail to deliver "the final mile". CWU insist there should be no privatisation of the universal service and Royal Mail should not be forced onto an uneven playing field via the liberalisation agenda. DECENT PAY CWU assistant secretary Dave Ward said that instead of playing with share ownership schemes, basic pay should be increased from its present derisory level to at least the national average. "Royal Mail employees' basic wage is less than 80 per cent of the UK national average," said Dave. He called on the government to invest in the industry and review the Postal Services Act and make Postcomm responsible for protecting and defending the universal service obligation and the UK Post Office. "Yes, competition is coming but rest assured the union will not be deflected from its progressive agenda. “To meet the threat of competition Royal Mail needs to concentrate on quality and invest in its greatest asset - its workforce," said Dave. * RMT members that want to assist the CWU campaign to see a publicly-owned Royal Mail fully restored to good health, providing customers with an excellent service and its employees with rewarding employment, ask your MP to sign early day motion 548. POSTAL WORKERS FIGHT ROYAL MAIL SELL-OFF