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Talks over post strike break down Talks over post strike break down
(8 minutes later)
Talks aimed at ending the current strike by postal workers have broken down, unions have said. Talks aimed at ending strike action by postal workers have broken down.
A second 48-hour strike over pay, pensions and job cuts began early on Monday morning with up to 130,000 staff staying away from work.A second 48-hour strike over pay, pensions and job cuts began early on Monday morning with up to 130,000 staff staying away from work.
Households and businesses face another week of little or no mail with a warning of severe disruption during the strike and for some time after.Households and businesses face another week of little or no mail with a warning of severe disruption during the strike and for some time after.
Striking postal workers held a rally in central London earlier on Monday. Both Royal Mail and unions expressed disappointment that negotiations had failed to resolve their differences.
Union officials had earlier said that talks were "at a critical stage" and only a few issues were left to be resolved. Differences
Further strike action will do nothing to change the harsh competitive realities we face Royal Mail spokesman class="" href="http://news.bbc.co.uk/1/hi/uk/7028539.stm">Postal woes bring cheer for some The TUC said "real progress" had been made during talks which had continued throughout the weekend.
A Royal Mail spokesman urged the Communication Workers Union (CWU) to call off the industrial action and said that support for the strike had weakened. But the Royal Mail and the Communications Workers Union (CWU) - which represents postal workers - both criticised each other's negotiating positions.
"Further strike action will do nothing to change the harsh competitive realities we face," the spokesman added. We simply want our people to work the hours they are already paid to work across the working week Adam Crozier, Royal Mail chief executive class="" href="http://news.bbc.co.uk/1/hi/uk/7028539.stm">Postal woes bring cheer for some
Immense disruption The Royal Mail described union demands as "unrealistic" while union officials accused the company of putting forward "unacceptable" conditions.
Business groups have warned that the walkouts are causing immense disruption to the economy. "We simply want our people to work the hours they are already paid to work across the working week using the equipment we are investing in to enable Royal Mail to compete and survive," said Royal Mail chief executive Adam Crozier.
The action could end up costing Royal Mail as much as £260m, according to sources quoted in the Sunday Telegraph. "The fact that the union leadership finds this so difficult starkly contradicts their public claim to support modernisation and change."
It says that by the end of the second 48-hour strike the cost to Royal Mail will have been between £50m and £60m. The CWU said Royal Mail's offer of a 6.9% pay increase over two years was contingent on a cut in pension benefits which it could not accept.
But it warns that costs will rise over the longer term as customers switch to other forms of communication because of the strikes. "Royal Mail's proposals also include flexibility proposals that mean, among other things, that postal workers will not know what job they are doing from one day to the next," a union spokesman said.
A senior executive estimated that people shunning postal services in favour of electronic forms of communication, so that they will not be affected by future strikes, could cost an extra £200m.
HAVE YOUR SAY I appreciate they do a lot of work but the strike could lead to more job losses Kim Wood, Macclesfield Send us your commentsHAVE YOUR SAY I appreciate they do a lot of work but the strike could lead to more job losses Kim Wood, Macclesfield Send us your comments
CWU members also staged a 48-hour walkout last week in a row with the Royal Mail over pay and pensions. Striking postal workers held a rally in central London on Monday as the two sides disputed the level of support for the strike action.
Royal Mail said that about 35,000 of the 110,000 staff due to work on Friday had come in despite the strike. Business groups have warned that the walkouts are causing immense disruption to the economy with reports suggesting the stoppages could cost the firm up to £260m.
It said that they had handled about 45% of mail in the system, although there had been less than usual because the strike had been well publicised. It is feared that costs will rise over the longer term as customers switch to other postal suppliers and electronic forms of communication.
The union has rejected a pay offer of 2.5% and is also worried about modernisation plans, which it believes will threaten about 40,000 jobs. CWU members also staged a 48-hour walkout last week in a row with the Royal Mail over the firm's modernisation's strategy.
Royal Mail argues that reform of the business is vital to ensure it can compete effectively in a fully liberalised market but unions say the proposals will cost 40,000 jobs.