Unions and backbenchers mobilise to combat sell-off
22 December 2008
The government faces a protracted battle with trade unions and rebel MPs in the coming year over its proposals to part-privatise Royal Mail.
The secretary of state for business, Lord Mandelson, last week backed the controversial Hooper report, which proposed selling up to 30 per cent of the service to another operator. TNT, a Dutch company, is the favourite to buy it.
The Communication Workers Union (CWU) strongly opposes the plan. Some reports even suggest that it might ballot members to disaffiliate itself from the Labour Party.
The CWU’s general secretary, Billy Hayes, said: “It is incredible that the government, which has led the world in overhauling banks, needs another European postal service to rescue Royal Mail. This was meant to be a report about competition, but Mandelson has ignored the damage done by irresponsible liberalisation and is advocating more involvement by private companies.”
The Hooper report also recommends radical changes to working practices that are likely to mean job losses. Any part-privatisation deal is expected to include a government undertaking to guarantee Royal Mail’s £7 billion pension deficit.
The report has provoked a backlash from backbench Labour MPs, including former minister Peter Hain, who plan to table a rival Commons motion next month to keep the service public.
Meanwhile, the postal strike planned for Friday, protesting about the closure of regional mail centres, was called off. The CWU said that more “meaningful discussions” were taking place with the management.