Postal workers’ union in strike ballot threat

MORE than 100,000 Royal Mail workers will be balloted for strikes if the company does not change plans to close its defined benefit pension scheme, a union has said.

The Communication Workers Union attacked the controversial decision to close the scheme next March and warned of a campaign of industrial action.

A private session of the union’s annual conference in Bournemouth opted to press ahead with plans for a strike ballot unless the company changes its position.

Delegates condemned Royal Mail’s announcement earlier this month, and approved a motion that read: “Conference recognises that Royal Mail’s decision – along with their proposals – is a clear signal that they intend to attack our terms and conditions to maximise profit for the shareholder.”

Deputy general secretary Terry Pullinger said the mood was one of “anger”.

He added: “If we cannot make genuine progress and get an agreement by August, we will have to take a serious decision about balloting for industrial action.”

The union has put forward an alternative proposal for a defined benefit “wage in retirement” scheme.

The conference decided that if Royal Mail introduces changes by executive action, there will be an immediate ballot for industrial action.

Royal Mail said the pension plan was currently in surplus but it expects this to run out in 2018.

The privatised company’s annual pension contributions are currently about £400 million.

It said that if no changes are made, the contributions could more than double to over £1 billion in 2018.

For a 50-year-old worker earning £25,000 a year and retiring at 65, the pension changes would equate to a loss of £4,392 a year.

The Royal Mail has previously said that there is “no affordable” solution to keeping the plan open in its current form.