A CRIPPLING national postal strike loomed last night as a feud between the cash-strapped Royal Mail and union officials threatened to end in a High Court action.
Postal workers are to be balloted on industrial action over this year’s 14.5 per cent wage offer which the Communication Workers’ Union claims has “more strings than the Philharmonic Orchestra”.
Meanwhile, Allan Leighton, chairman of Royal Mail, is threatening legal action against the union for libelling him in its literature.
The 200,000 members will vote over the next few weeks on whether to stage the first national post strike since 1996.
A few weeks ago, the union said that any strike mandate would be followed by industrial action — in the past it has received “yes” votes but not implemented them.
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Royal Mail’s solicitors are demanding a retraction of campaign material issued by London branches which says that Mr Leighton, a favourite of the Government, is highly paid while workers are being offered a derisory rise in their pay and London weighting.
Mr Leighton complained about a poster which said: “Allan Leighton . . . does not believe we are entitled to a decent increase in London weighting. That’s a bit rich coming from him, who has wasted no time in awarding himself a fat pay cheque and £3 million bonus next year.”
Lawyers from CMS Cameron McKenna wrote to the union, saying that the bonus figure was incorrect and that the statement meant that “the chairman has double standards; he is motivated by personal greed when it comes to his own pay while adopting an entirely different approach when it comes to the pay of other lesser paid employees”.
The lawyers demanded “as a matter of urgency” action to “put the record straight”.
They added: “The statement is untrue in these respects. He does believe that employees are entitled to a decent increase in London weighting, he has not awarded himself a fat pay cheque and he has not awarded himself a bonus of £3 million next year.”
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The letter added that, if any union official repeated the remarks, “appropriate legal action may be taken”.
The union has now sent out a newsletter depicting Mr Leighton as a used car salesman with a wad of money in his hand. It says that Mr Leighton’s claims about the pay offer are untrue and that it really amounts to only a 4.5 per cent increase.
Mr Leighton angered the unions last month when he went over their heads and wrote directly to employees offering a 14.5 per cent rise over 18 months dependent on changes to working practices.
The increase would take the minimum pay to £300 a week, a key union demand, but the CWU says that the offer has “more strings than the Philarmonic Orchestra”.
Mr Leighton, who did not want to comment, is expected to write to all employees again urging a “no” vote in the ballot. The union believes that Mr Leighton is determined to sideline it and remove it from the negotiating process.
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But the Royal Mail chairman is said to be frustrated with the slow progress of negotiations and believes that some elements of the union will always block change.
The Royal Mail is half-way through a rescue programme. Last year it lost £611 million, half the level of the previous year’s losses.
The ballot will begin in the next few days with the result due early next month. The CWU then has to give a week’s notice of a strike.
London is thought to have faced a potential walkout last Friday but Royal Mail management put pressure on national officials of the CWU, arguing that a strike could not be dismissed as wildcat action if they had heard about it in advance.
The last national postal strike caused weeks of disruption and the then Conservative Government temporarily scrapped the Royal Mail’s monopoly. The CWU’s general secretary at the time was Alan Johnson, now a Labour Education Minister.
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Royal Mail has a history of poor industrial relations and, a few years ago, accounted for half of all strike days in the UK. Its record was so alarming that, two years ago, the Government ordered Lord Sawyer to conduct an inquiry into the issue. He put blame on both sides, highlighting militaristic management and hardline union members. Since his report was published, relations have improved with wildcat walkouts dramatically reduced.
However the present clash could prove one of the toughest. Mr Leighton is believed to think that, while the union leadership are responsible negotiators, they cannot keep their promises because of hardline factions. His legal action against the union, which is virtually unheard of, is expected to galvanise opposition to the pay deal. If he wins, the union, which is struggling financially, could face a large bill for costs.
Mr Leighton holds positions on many company boards, including the company which owns Leeds United FC and is chairman of Bhs and lastminute.com. He is credited with the revival of Asda, working alongside Archie Norman and is famed for his no-nonsense approach. He runs a website offering business advice called Ask Allan.
The CWU said that the Royal Mail was being disingenuous by claiming that the offer was worth 14.5 per cent over 18 months. Officials said the only definite money on offer was 3 per cent from October and a further 1.5 per cent next April.
The union said that it was being asked to agree to 30,000 job cuts.
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A spokesman for the Royal Mail insisted the offer was worth 14.5 per cent on pensionable pay and was linked to simple productivity changes.
The spokesman said the latest offer was simpler and contained fewer strings than one recommended earlier in the year by the CWU leadership.
Mr Leighton, who is paid £20,000 a year as a part-time chairman, this year received a bonus of £165,000 for meeting performance targets. Royal Mail’s chief executive, Adam Crozier, the former Football Association chief, is paid £500,000 a year and this year received a bonus of £57,400 for two months’ work.