Talks to avert Royal Mail strikes could collapse in the next 48 hours

Talks to avert Royal Mail strikes over pay ‘could collapse within the next 48 hours’ – as bosses ‘threaten to put postal service into administration if deal with union chiefs can’t be reached’

  •  The explosive idea is regarded as a last resort but has been raised with the Union
  •  Next two days key to settle dispute with source saying discussions ‘precarious’
  •  Royal Mail claims the strikes have cost them £200 million in nine months

Talks with Royal Mail staff over a bitter dispute for pay, jobs and conditions could collapse in the next 48 hours.

Bosses are thought to have threatened to put the postal service into administration as talks with union chiefs become more fraught.

The explosive idea is regarded as a last resort but has been raised with the Communication Workers Union, the Guardian reports. 

And the next two days are thought to be key to settling the dispute, with a source close to the talks telling the BBC that discussions are ‘precarious’ and in their ‘last throes’.

They continued: ‘Administration is a real possibility for Royal Mail if the industrial action continues. 

The explosive idea is regarded as a last resort but has been raised with the Communication Workers Union

‘It is not a negotiating ploy.’

If the government approve to put the service into administration, the Royal Mail could be declared insolvent.

This comes just weeks after members of the union overwhelmingly voted to continue industrial action – with 96 per cent in favour of more strikes unless the deadline is broken.

Royal Mail workers have staged a series of strikes in recent months, including in the busy run up to Christmas.

Over 100,000 postal workers are involved in the dispute over pay, which has been running for almost a year.

Royal Mail claims the strikes have cost them £200 million in lost business and covering staff.

And it is losing £1 million a day – with a total loss of as much as £450 million for the last financial year. 

A spokesman for Royal Mail said: ‘Throughout the dispute we have highlighted the need for Royal Mail to transform, and been very clear about the damaging impact of strike action.

This comes just weeks after members of the union overwhelmingly voted to continue industrial action – with 96 per cent in favour of more strikes unless the deadline is broken

‘Our latest trading update shows that we lost £295 million in the first nine months of the last financial year, and around two thirds of the losses were due to strike action.

‘We also said that we expected an adjusted operating loss around the mid-point of £350 million to £450 million for the year. Further strike action would continue to cause losses.

‘That is why we are doing all we can to get agreement with the CWU, including making numerous improvements to our offer throughout the negotiations with the CWU, supported by Acas and Sir Brendan Barber. 

‘We remain committed to getting the right deal, which secures the future of Royal Mail and its workforce – that would be the best outcome for our people, our customers and our shareholders.’

A Communication Workers Union spokesperson added: ‘It is clear Royal Mail Group are in a serious financial situation. 

‘This is as a direct result of mismanagement and recklessness at the most senior level of the company. 

‘Those individuals who have led the company into this crisis have no right to lead us out of it.

‘The company as a whole now have a decision to make – do they reach an agreement with the union or do they continue their relentless and daily assault on postal workers in workplaces across the UK? 

‘There is no positive future for Royal Mail without the support of the workforce.’

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