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Postal workers to vote on strikes Postal workers to vote on strikes
(10 minutes later)
More than 130,000 postal workers are to be balloted on strike action in a row over pay.More than 130,000 postal workers are to be balloted on strike action in a row over pay.
The Communication Workers' Union rejected a 2.5% pay increase offer and says it will begin balloting staff later this month. The Communication Workers' Union (CWU) rejected a 2.5% pay rise offer and said it would begin balloting staff later this month.
The union said Royal Mail's business plan would lead to 40,000 job losses, pay cuts and the closure of mail centres and delivery offices. The CWU said Royal Mail's business plan would lead to 40,000 job losses, pay cuts, mail centres and delivery office closures and threaten pensions.
The Royal Mail said it was a fair offer in a "competitive" market.The Royal Mail said it was a fair offer in a "competitive" market.
It added that the recent opening up of the UK's postal sector meant it had lost business to rivals.
The Royal Mail also warned the union that it would be "madness" to back strike action.
However, the CWU argued that the Royal Mail had reneged on a deal agreed last year to limit the impact of competition and automation.
"Royal Mail has abandoned our agreed approach in favour of a short sighted Business Plan that amounts to a cost cutting frenzy, reductions in pay and a defeatist attitude towards competition," the CWU said.
Should the CWU vote back action, it could trigger the first national post walkout in 10 years.
Ballot papers will be sent out to CWU members on 22 May and the result of the vote will be announced on 7 June.