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| Version 0 | Version 1 |
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| Royal Mail warns of pay freezes | Royal Mail warns of pay freezes |
| (10 minutes later) | |
| All Royal Mail staff face a pay freeze this year as the postal service tries to cut costs to ensure its survival. | All Royal Mail staff face a pay freeze this year as the postal service tries to cut costs to ensure its survival. |
| In a letter to trade unions, the company warned it was in a "very tight financial position" and might not be able to increase wages for any worker. | In a letter to trade unions, the company warned it was in a "very tight financial position" and might not be able to increase wages for any worker. |
| The government announced plans to sell off part of Royal Mail earlier this year, arguing this was the only way to safeguard the service. | The government announced plans to sell off part of Royal Mail earlier this year, arguing this was the only way to safeguard the service. |
| It is facing increasing competition from overseas private postal operators. | It is facing increasing competition from overseas private postal operators. |
| 'Outrageous' | |
| The letter, sent by Jon Millidge, Royal Mail's human resources director, said: "The global economic turmoil has exacerbated the structural decline in postal markets in the UK and around the world, with the UK market now declining between 8-10% compared to last year. | |
| "Given the tough economic conditions and with the retail price index currently being negative, you will undoubtedly be aware that many other companies find themselves in a similar position of having difficulty in affording increases in pay," his letter continued. | |
| Dave Ward, deputy general secretary of the Communications Workers Union, described any pay freeze as "outrageous". | |
| "Postal workers are first class - they don't deserve this second-class treatment," he said. | |
| "The Royal Mail posted its best financial results for years in December and outperformed all of its financial targets," he added. | |
| Prime Minister Gordon Brown has said that the service's £25bn pension deficit makes outside investment imperative. | Prime Minister Gordon Brown has said that the service's £25bn pension deficit makes outside investment imperative. |