Lord Mandelson has accused postal union leaders of using "scare tactics" in the row over government plans to part- privatise Royal Mail.
Lord Mandelson has accused postal union leaders of using "scare tactics" in the row over government plans to part- privatise Royal Mail.
In an interview with the Observer, the business secretary said union leaders were fighting an "ideological" battle that put pensions and jobs at risk.
In an interview with the Observer, the business secretary said union leaders were fighting an "ideological" battle that put pensions and jobs at risk.
He warned Labour that it needed to show it can still pursue bold policies, otherwise it was "inviting defeat".
He warned Labour that it needed to show it can still pursue bold policies, otherwise it was "inviting defeat".
Lord Mandelson also called banker Sir Fred Goodwin's pension deal "obscene".
But the union dismissed his comments as "baffling" and the plan as nonsense.
'Inviting defeat'
'Inviting defeat'
He insisted there would be no turning back from the proposed 30% Royal Mail sell-off and said the plans guaranteed a continued "universal, six-day-a-week mail service".
Mr Mandelson insisted there would be no turning back from the proposed 30% Royal Mail sell-off and said the plans guaranteed a continued "universal, six-day-a-week mail service".
Some in the party may be weary of taking decisions but that simply signals that we're ready for a rest, inviting electoral defeat Lord Mandelson
Some in the party may be weary of taking decisions but that simply signals that we're ready for a rest, inviting electoral defeat Lord Mandelson
Lord Mandelson accused the Communication Workers Union (CWU) of putting out "propaganda" that risked making it a tug-of-war between the unions and the government.
Lord Mandelson accused the Communication Workers Union (CWU) of putting out "propaganda" that risked making it a tug-of-war between the unions and the government.
"I think a lot of the workforce of the Royal Mail won't be thinking of the politics of this, but about their pension and their job security," he said.
"I think a lot of the workforce of the Royal Mail won't be thinking of the politics of this, but about their pension and their job security," he said.
"Both are in danger if we do not sort out the finances of the Royal Mail."
"Both are in danger if we do not sort out the finances of the Royal Mail."
But Billy Hayes, general secretary of the CWU, told the BBC he found Mr Mandelson's comments "baffling" and there was no need to take such drastic action.
But Billy Hayes, general secretary of the CWU, told the BBC he found Mr Mandelson's comments "baffling" and there was no need to take such drastic action.
"It doesn't make sense. It's a bit like what was proposed for Northern Rock. The state takes on the problem - even though the government created the problem - and you bring in a private company like TNT to deal with the profits," said Mr Hayes.Lord Mandelson said Labour could still win a fourth term
"It doesn't make sense. It's a bit like what was proposed for Northern Rock. The state takes on the problem - even though the government created the problem - and you bring in a private company like TNT to deal with the profits," said Mr Hayes.Lord Mandelson said Labour could still win a fourth term
He added: "Once you deal with the pension fund, you are giving £300m additional money to the Royal Mail."
He added: "Once you deal with the pension fund, you are giving £300m additional money to the Royal Mail."
The row comes the day after the prime minister defended the government's plan to sell off 30% of Royal Mail, saying it was the only way to safeguard the service.
The row comes the day after the prime minister defended the government's plan to sell off 30% of Royal Mail, saying it was the only way to safeguard the service.
"I do say to you that guaranteeing a £25bn pension fund, spending £1.5bn on the Post Office network, maintaining a universal service obligation can be achieved if we make the investment that is necessary," Gordon Brown said.
"I do say to you that guaranteeing a £25bn pension fund, spending £1.5bn on the Post Office network, maintaining a universal service obligation can be achieved if we make the investment that is necessary," Gordon Brown said.
"And that's what's behind our proposals to get someone to help us invest... I know this is difficult but we will continue to talk to address the concerns that people have."
"And that's what's behind our proposals to get someone to help us invest... I know this is difficult but we will continue to talk to address the concerns that people have."
In his interview, Lord Mandelson also had a warning for those Labour MPs who wanted to shy away from controversy.
In his interview, Lord Mandelson also had a warning for those Labour MPs who wanted to shy away from controversy.
"Some in the party may be weary of taking decisions but that simply signals that we're ready for a rest, inviting electoral defeat," he said.
"Some in the party may be weary of taking decisions but that simply signals that we're ready for a rest, inviting electoral defeat," he said.
Critics of the partial sell-off, including more than 130 Labour MPs, fear it will lead to full privatisation and job cuts.
Critics of the partial sell-off, including more than 130 Labour MPs, fear it will lead to full privatisation and job cuts.
Fourth term
Fourth term
The business secretary also talked about Sir Fred Goodwin and his £693,000-a-year for life pension fund.
The business secretary also talked about Sir Fred Goodwin and his £693,000-a-year for life pension fund.
He said the former Royal Bank of Scotland (RBS) boss was "personally responsible" for the bank's downfall.
He said the former Royal Bank of Scotland (RBS) boss was "personally responsible" for the bank's downfall.
It was "obscene that such an individual, after such failure commercially and after such terrible misjudgement can get away with such a pension pot," he went on.
It was "obscene that such an individual, after such failure commercially and after such terrible misjudgement can get away with such a pension pot," he went on.
Lord Mandelson stressed that despite a run of unfavourable polls, he believed Labour could still win a fourth term.
Lord Mandelson stressed that despite a run of unfavourable polls, he believed Labour could still win a fourth term.
He said this would depend on the party being able to demonstrate it had dealt with the economy and it was still the "change-making" force in British politics.
He said this would depend on the party being able to demonstrate it had dealt with the economy and it was still the "change-making" force in British politics.
Do you work for Royal Mail? What do you make of Peter Mandelson's comments? Are you worried about your Royal Mail pension? What are your experiences? Send us your comments using the form below.
Do you work for Royal Mail? What do you make of Peter Mandelson's comments? Are you worried about your Royal Mail pension? What are your experiences? Send us your comments using the form below.
In most cases a selection of your comments will be published, displaying your name and location unless you state otherwise in the box below.
In most cases a selection of your comments will be published, displaying your name and location unless you state otherwise in the box below.
