Economy

Royal Mail prepared to challenge planned strike in court

Royal Mail prepared to challenge planned strike in court”

Royal Mail Group PLC (LON:RMG) faces a two-day strike later this month after its workers increase the pressure in a dispute over pensions and pay. The announcement came after the union said earlier this week that 89.1 percent of voters had backed strike action, with 73 percent of the CWU's 110,000 Royal Mail members participating in the vote.

Royal Mail announced in a statement yesterday that it had received confirmation from the CWU that it was planning two days of industrial disruption at or after 11am on Thursday, October 19, to before 11am Saturday, October 21.

In the worst case there could be industrial action around the key. We want to reach agreement.

The company added that it would contact the CWU to invoke the external mediation process under dispute resolution procedures agreed with the union in 2013.

"Royal Mail is very disappointed by this announcement from the CWU".

"These legally-binding dispute resolution procedures were set up as a vehicle to resolve industrial disputes".

Under the Agenda for Growth, contractual dispute resolution procedures are required to be followed once they have been instigated.

The company said this external mediation escalates to independent external mediation which they expect would take until "close to Christmas" to be completed if not longer.

"It is highly disappointing that after 18 months of negotiations including external mediation that we have reached this point".

"Royal Mail Group management have clearly moved away from the spirit and intent of our agreements and the empty promises of privatisation, and have suffered a huge vote of no confidence from their employees and CWU members as a outcome".

Royal Mail was privatised four years ago and is one of the few big British companies to still have a defined-benefit pension scheme, which pays out a proportion of a member's final salary determined by length of service.

The CWU said its members in Parcelforce will be involved in the stoppage, which will be the first national postal strike since 2013. The UK's recently passed Trade Union Act requires that unions must have at least 50 percent participation in order to move forward with the result of a vote.



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