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| Postal union set for more strikes | Postal union set for more strikes |
| (10 minutes later) | |
| The postal workers union has said it will announce further strikes after failing to reach an agreement with the Royal Mail during five days of talks. | The postal workers union has said it will announce further strikes after failing to reach an agreement with the Royal Mail during five days of talks. |
| Industrial action had been scheduled for last week, but was suspended for last ditch negotiations at the weekend. | Industrial action had been scheduled for last week, but was suspended for last ditch negotiations at the weekend. |
| According to the Communication Workers' Union (CWU), while progress had been made in some areas, including pay, it was not enough to avert strike action. | According to the Communication Workers' Union (CWU), while progress had been made in some areas, including pay, it was not enough to avert strike action. |
| CWU members are concerned about pay levels and modernisation plans. | CWU members are concerned about pay levels and modernisation plans. |
| Cash question | |
| The union had already called strikes after rejecting a 2.5% pay deal, and warned that the modernisation plans could threaten 40,000 jobs. | The union had already called strikes after rejecting a 2.5% pay deal, and warned that the modernisation plans could threaten 40,000 jobs. |
| According to the CWU, the Royal Mail has ended an agreed period of calm, leading to union fears that the company was about to "implement unagreed operational changes". | According to the CWU, the Royal Mail has ended an agreed period of calm, leading to union fears that the company was about to "implement unagreed operational changes". |
| As a result, the CWU said it would "announce further strikes". | As a result, the CWU said it would "announce further strikes". |
| Postal workers want their pay to rise to the national average over the next five years, the union argues. However, the Royal Mail says this would amount to a 27% increase which it could not afford. | |
| At the same time the Royal Mail is having to revamp its business as it faces increased competition from rivals after the opening up of the UK postal market. | |
| The company argues that the changes are necessary if it wants to better compete and finance the upgrading of its equipment. |