Unite: The Government must address Royal Mail's pensions deficit
Friday, 3 July 2009
12:00 AM
Unite the Union has welcomed the decision not to part-privatise Royal Mail but warns that the government must now address the pensions deficit.
The union is concerned that Lord Mandelson has left Royal Mail and its staff in a state of uncertainty, as he has not explained how the government, as shareholder, is going to address the immediate problems of the pensions deficit, regulation and future investment.
In a letter to the union's 11,000 members who are managers at Royal Mail, National Officer, Paul Reuter said:
"The big issue of part-privatisation has been resolved, for the time being, but there are still many issues to deal with.
"The biggest single issue that has prevented Royal Mail from investing in the future is the pension's deficit. The deficit needs to be addressed urgently. We anticipate that the pension's trustees will revise their estimate of the shortfall from the current figure of £3.3bn to £10bn and this in turn would require Royal Mail to more than double its annual payments.
"We call upon the Government to spell out in clear and precise terms what actions the Government are going to take to plug the pension's deficit and protect the business."
ENDS
Contact: Ciaran Naidoo on 07768 931 315
Disclaimer: Press releases published on this page are from key opinion formers
who promote their organisation's activities by subscribing to a campaign site within
politics.co.uk. politics.co.uk does not endorse, edit, or attempt to balance the
opinions expressed on this page. The content of press releases are wholly the responsibility
of the originating company or organisation.
Gail Cartmail, Unite assistant general secretary, questions government commitment to pensions negotiations.
Royal Mail's competitors are "gaining momentum", according to a report published today by Postcomm.
Royal Mail launches change of address service
A rally today by the Communication Workers' Union (CWU) against the privatisation of Royal Mail was attended by a host of opposition politicians.
Junior minister Jim McGovern has announced his resignation over the government's plans to sell off a significant part of Royal Mail.
The government has underlined its determination to part-privatise or sell Royal Mail after being warned the postal market - and Royal Mail's financial position - are continuing to deteriorate.
The government has accepted an independent review into Royal Mail which recommended its part-sale to a foreign company.
The government is taking over Royal Mail's pension scheme in a move which will significantly improve George Osborne's bid to reduce the deficit.
Lord Mandelson blamed the Communication Workers Union (CWU) today for the ongoing stalemate with Royal Mail.
The government has published the bill to privatise 30 per cent of the Royal
Mail with Lord Mandelson, the business secretary offering a potential olive branch to those within his own party opposed to the plan.
Newsletter sign up