Postal union is accused of hypocrisy over pensions strike

THE union threatening to bring the Royal Mail to a standstill has been accused of hypocrisy as it emerged that it is making similar changes to its pension system as those it is striking over.

The Communication Workers Union (CWU) balloted in favour of a walkout on Nov 24 and 25 in a row over Royal Mail’s decision to close its final salary pension scheme, costs of which are forecast to balloon by £1billion annually, but made no mention of the fact that it has been forced to reconsider its own arrangements.

Dave Ward, the CWU’S general secretary, has also repeatedly criticised Royal Mail by claiming it has “sucked almost £1billion” out of the company to give to shareholders which are “predominantly hedge funds”. The union’s annual accounts for last year show that the majority of its pension assets, £50.1million, are invested in hedge funds. The accounts also show its pension scheme deficit rose from £7.2million in 2015 to £19.4million last year.

As well as raising the retirement age from 60 to 65, the CWU plans to close the current arrangements and offer new employees a career average pension scheme, a document sent to members in March shows.

It is unclear whether the plans have yet been put into action.

Lord Norman Tebbit, a senior cabinet minister in Margaret Thatcher’s government who piloted through laws to break strikes, said: “It is hypocritical for the union to agitate against the Royal Mail for doing what they are doing themselves.”