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Postal union set for more strikes Postal union set for more strikes
(about 1 hour 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 questionCash 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. Since the beginning of June the CWU has staged a number of national walkouts in protest t Royal Mail's offer of a 2.5% pay increase and the company's aggressive modernisation plans.
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". The union claims the shake-up plans will put about 40,000 jobs at risk.
As a result, the CWU said it would "announce further strikes". According to the CWU, the Royal Mail has now upped its pay offer to a two-year increase worth 6.7%, however the company is sticking to pension proposals rejected by the union - such as increased employee contributions and later retirement age.
Royal Mail is now offering a two-year deal worth 6.7%, according to the union. The CWU also said there has been no final agreement on a number of areas including job security, personnel procedures, automation, productivity and network changes.
But the union is unhappy that the Royal Mail is sticking to proposals on pensions including increased employee contributions and later retirement age, which the CWU had rejected. No agreement
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. Up until now, Royal Mail has stood firm against union demands insisting they are unaffordable.
The company argues that the changes are necessary if it wants to better compete and finance the upgrading of its equipment. It also argues that change is necessary if it is to battle increased competition in the sector after the opening up of the UK postal market and finance the upgrading of its equipment.
According to the CWU, the Royal Mail has now ended an agreed period of calm, during which it had promised not to introduce changes to its operations, in exchange for a commitment from the union not to call further strikes.
This has led to fears that Royal Mail is about to "implement unagreed operational changes".
As a result, the CWU said it would now announce further strikes "to be held prior to the end of September".