Christine Buckley, Industrial Editor
We've made some changes
to The Sunday Times
Royal Mail faces a fresh wave of industrial action, only months after the end of one of the biggest strikes to hit the postal service in years.
The Times has learnt that unions have rejected the postal group's plan to overhaul its pensions scheme and are poised to ballot nearly 150,000 members over whether they back the plan or not. Last year, postal services were crippled by several days of national strikes in a long-running dispute over pay and working practices.
Royal Mail said a year ago that it intended to close its final-salary scheme to new employees and to raise the retirement age from 60 to 65. It then proposed ending the final-salary scheme for all employees and creating a career average plan, which would be linked to the retail prices index.
When last year's dispute over pay was settled, Royal Mail agreed to continue talks with the unions over pensions, but they have failed to make progress after nearly four months.
The Communication Workers Union (CWU), which represents postal workers, and Unite, which represents postal managers, will start to ballot their members shortly. If, as officials believe, the pension plans are rejected in the ballots, a subsequent strike vote would be virtually certain. The unions are recommending rejection of Royal Mail's plans.
The threat of fresh strike action comes as Royal Mail is under increasing attack over the shutting of 2,500 post offices. The closures, which are being rolled out regionally, have hit London, sparking growing complaints that profitable, popular offices are being shut. There are also complaints over the consultation period, which lasts only six weeks.
Postal union members are likely to feel aggrieved that they are facing a deterioration in their retirement benefits while the pensions of other public sector workers have been protected by the Government.
If postal workers and managers strike, Royal Mail would find it difficult to offer any service. In previous disputes, it has relied on managers to keep some operations running.
Results of the ballots will be declared days before Royal Mail plans to implement the pensions changes at the start of April.
Businesses and households will be furious if there is fresh disruption. A large number of companies switched to rivals or paperless billing during the last dispute. Royal Mail said that the dispute had cost it £10 million in revenue but that the real cost would not be known until it became clear how customers had changed their postal habits.
The group has said that its pension deficit stands at £5 billion, which it is trying to pay off over 17 years. Its pension costs have risen by £193 million a year to £722 million. Royal Mail operates one of the largest pension schemes in the country, with more than 450,000 retired and working members.
A spokesman for Royal Mail said that the CWU had agreed last autumn to support changes to the pension plan “as part of a wider agreement on pay, modernisation and pension reform. And these changes, which we have told our people about, are in line with those agreed with the CWU last autumn, and are necessary if we are to achieve the best possible pension plan that the company can afford.”
The company has partly blamed pension contributions for profit slides in the past two years, down a third to £223 million to the end of March last year. Despite this, Adam Crozier, the chief executive, received a £469,000 bonus, taking his total remuneration to £1.3 million, an increase of 16 per cent on the previous year.
How the new breed of location based mobile services can find your nearest cashpoint, restaurant or wi-fi hotspot
Enjoy screenings of all the classic films you love, plus take advantage of two-for-one tickets
We explore leisure activities that are safe and suitable for all of the family
Times Online's new TV show helps you make the right decisions for your pet
Are you California dreaming? Explore the wonders of the Golden State. Also enter our fantastic competition
See the best entries in this year's competition
Your brain is capable of more than you might think...
An interactive preview of the brand new For Your Eyes Only exhibition
The latest travel news plus the best hotels and gadgets for business travellers

Love Sudoku? Play our brand new interactive game: with added functionality and daily prizes

Are you irritable when you return from work? Drained of emotion? You could be suffering from boreout
Prepare for some shock and awe, petrol lovers. Despite the greens trying to wipe it out, the car is about to offer us the most exciting year ever
We've trawled the brochures and websites to find this summer’s best holidays for every taste and budget

Overseas contacts and local business information

Find a course, arrange a game and save money
2006
£189,500
NW England
2008/08
£169,950
NW England
2007/57
£35,000
South East England
Great car insurance deals online
Circa £82,000 per annum
Birmingham Women's Hospital
Birmingham
To £28k
Barclaycard
Northampton/Liverpool/Teeside
£
Up to £66,000 per annum
Hertfordshire County Council
South East
To £38k
Barclaycard
Northampton/Liverpool
2 Bathrooms, Balcony and Garden
Beautiful Gardens w/ stunning Thames Views
Dining, Shopping & Riverside Pk
Mortgages, bank acc & money transfers to help you buy abroad
Explore mystical Jordan
From £1030 for 7nts 4*
to USA's Most Cosmopolitan City; San Francisco!
£POA
Book Now for Winter 08/09 and Get 10% off!
Great travel insurance deals online
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times. Search globrix.com to buy or rent UK property.
© Copyright 2008 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.
It does seem rather indecent for the chief executive of a company in such declared trouble to get a large bonus payment. If the company can afford that then surely it can afford to preserve the pensions? As a taxpayer I'd like to see Royal Mail make a profit, but I don't want the postal workers to be treated unfairly. I want a decent mail service that I can use with a clear conscience! If workers were promised certain pension benefits when they joined, those benefits shouldn't be taken away.
My local Post Office is under threat of closure, as well. It's been prevented from selling road tax, and other services, has not been allowed to extend its opening hours to fit in with the needs of commuters, and now we're told it's not making enough profit and must close altogether. That's no way to run a business - Royal Mail needs to be run by someone with a bit of genuine business acumen, who will make the most of its unique position in British society and stop the slash and burn.
Helen, London,
Royal Mails plans for Postal Workers pensions are at their heart morally wrong. Remember the company took a pension holiday for 17 years!!! At a time when the workers were generating hugh profits for the exchequer. Postal Workers continued to pay their pensions contributions throughout this period. They are being rewarded by receiving less on retirement and having to work to 65, its a scandal. At a time when the Government has just ploughed 100 Billion, yes Billion into Northern Rock!!!
Steve, Belfast,
when consultation period, cwu members suggest a lot of ideas, but sadly RM just ignored and go ahead, they made the decision already exactly same as they made about the closure of the Post Office around the country,
serviceman, northampton,
The CWU are again trying to scare everyone in to striking! What they have not said, as a union, what there plan is / or would be? It is fine saying NO, but surely they must have a plan - so what is it???
Jane Frew, Hemel Hempstead,
Again Royal Mail are spouting misleading propoganda-"A spokesman for Royal Mail said that the CWU had agreed last autumn to support changes to the pension plan âas part of a wider agreement on pay, modernisation and pension reform. And these changes, which we have told our people about, are in line with those agreed with the CWU last autumn, and are necessary if we are to achieve the best possible pension plan that the company can afford.â
They used this tactic to get the public on their side in the the last dispute and unfortunately the public believed them.This time they must not get away with telling lies.
Crozier and Leighton will hopefully lose this one since the management union is involved.
This is not only a disaster for the postal workers if this proposal goes ahead but any final pension scheme is doomed as it will give the green light to any other company to end final pension schemes.
This must be stopped!
john, shrewsbury, uk
As a postman in Gateshead I don't find it amusing that the management are imposing change that won't work (because the systems aren't in place for them to work) and they are messing with the money I have paid in for 18 years! No one mentions that Royal Mail are in this dire strait because they took an almost 20 year pension holiday and most of the spanish practices they complained about were also imposed by management!!!!
Barry Nielsen, Gateshead, UK
The unions must face the fact that no pension scheme is trustworthy with the Government poised to rob it at any time and the managers usually amateurs.. Close the pension scheme, refund each member their share of the fund and give them a rise to cover the current premiums.
Brian Gilbert, HAMPTON, Middx
The goverment should bail out the pension scheme allowing those who signed on joining to retire at 60 . then they should change the rules for new starters, and sack crozier if any of the money was re -directed to any other part of the company !
also the bosses should not recieve bonuses if the company is loss making! bonus should be related to any final profits which means no company debts throughout the whole company ie the present loss of there payments into the pension fund . if postpeople have to work to there 65 after signing a contract to retire at 60 ,should this then not apply to all civil servants!
steve, london, uk