CWU: Investment is just a pay-back

Thursday, 18, May 2006 12:00

The Communications Workers' union (CWU) has welcomed the government's £1.75 billion investment in Royal Mail, but insists this is simply "pay-back time" for money previously taken from the company.

General secretary Billy Hayes said the union had been campaigning for this for two years.

He pointed out that over the last 40 years the government has taken billions out of the Royal Mail, and the company has had "a lengthy pension holiday", insisting both therefore had "a moral obligation" to fund the £5.6 billion pensions deficit.

Deputy general secretary Dave Ward said the union wants to see the detail of the modernisation package, to ensure it includes a rise in status of postal workers.

He warned: "There could be a sting in the tail with Royal Mail's vision of modernisation leading to the loss of up to 40,000 jobs which the union will oppose."