Christine Buckley, Industrial Editor
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Royal Mail is facing a fresh threat of industrial action after the Communication Workers Union (CWU) voted overwhelmingly to oppose changes to the pension scheme.
The postal group will stop its final salary pension for all employees today, and replace it with one based on career average earnings. It has warned that it needs to make radical changes to the pension plan which has a £3.4 billion deficit.
However, the CWU warned that it would push for industrial action unless Royal Mail backs down from its overhaul of the pension plan.
It held a consultative ballot among its 140,000 members at Royal Mail with 92 per cent of those voting, saying that they opposed the changes. The CWU ballot follows a similar vote held by Unite, which represents postal managers. That ballot produced a 85 per cent vote against the pension changes.
The threat of renewed strike action comes just months after Royal Mail suffered one of the biggest strikes in 20 years in a clash over pay.
Dave Ward, deputy general secretary at the CWU, said: “We’now calling on Royal Mail to stop acting in undue haste and to discuss with the CWU how to solve the pension problem facing the company. After the last year of unrest Royal Mail needs to take the workforce along with them in this major change to postal workers’ terms and conditions.
John Millidge, interim human resources director, said: “With such overwhelming opposition to their plans, if Royal Mail can’t find an acceptable solution with the CWU, industrial action will be inevitable.
“Changes are unavoidable given increasing longevity and the higher costs of providing the current pension plan, but Royal Mail remains committed to continue offering postmen and women the best pensions that the company can afford.”
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If Royal Mail is committed to offering the postal workers the best pension why does it insist on deducting the Lower Earnings Limit figure from allocated pensions before final calculations?
Richie, Cardiff , Wales