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| Version 1 | Version 2 |
|---|---|
| Strike action hits postal service | Strike action hits postal service |
| (about 3 hours later) | |
| A second 24-hour strike by Royal Mail staff is under way as part of a row over pay and job security. | |
| The Communication Workers Union (CWU) said up to 130,000 of its members walked out at 1900 BST on Thursday. An earlier stoppage took place last month. | |
| Eleventh-hour talks on Wednesday between the union and Royal Mail chairman Alan Leighton failed to break the impasse over pay. | |
| The CWU is in dispute with the Royal Mail over the company's 2.5% pay offer. | The CWU is in dispute with the Royal Mail over the company's 2.5% pay offer. |
| Locked in battle | Locked in battle |
| Union officials have argued that workers' pay should rise in line with inflation, which Royal Mail says it cannot afford. | Union officials have argued that workers' pay should rise in line with inflation, which Royal Mail says it cannot afford. |
| The union has refused to grasp or understand the harsh commercial reality of the market in which Royal Mail now operates Allan Leighton, Royal Mail chairman | The union has refused to grasp or understand the harsh commercial reality of the market in which Royal Mail now operates Allan Leighton, Royal Mail chairman |
| Royal Mail's modernisation plans are also a bone of contention as the CWU says these will lead to the loss of 40,000 jobs. | Royal Mail's modernisation plans are also a bone of contention as the CWU says these will lead to the loss of 40,000 jobs. |
| But the company says that changes are essential in order to compete with rival mail firms and needs to spend a £1.2bn loan from the government on investing in new technology to transform its operations, not on higher wages. | |
| CWU General Secretary Billy Hayes told the BBC that the Royal Mail was not taking the strikes "very seriously". | CWU General Secretary Billy Hayes told the BBC that the Royal Mail was not taking the strikes "very seriously". |
| The union was unhappy because Royal Mail chairman Alan Leighton did not meet union officials face to face in the last round of talks to settle the dispute, but instead spoke to them in a 40-minute conference call. | |
| Mr Hayes suggested further action would be taken if necessary. | Mr Hayes suggested further action would be taken if necessary. |
| Fierce competition | Fierce competition |
| As the strike was about to began, Royal Mail's Allan Leighton said: "Yet again the union has refused to grasp or understand the harsh commercial reality of the market in which Royal Mail now operates." | |
| Since Royal Mail lost its monopoly status on post deliveries from 1 January 2006, 17 operators have entered the UK mail market, creating fierce competition for the post office group - particularly in the more profitable business post sector. | Since Royal Mail lost its monopoly status on post deliveries from 1 January 2006, 17 operators have entered the UK mail market, creating fierce competition for the post office group - particularly in the more profitable business post sector. |
| UK MAIL MARKET The UK mail market is shrinking by 2.5% per yearRoyal Mail has lost 40% of corporate business Royal Mail rivals will handle one in five of all letters posted in the UK Source: Royal Mail | UK MAIL MARKET The UK mail market is shrinking by 2.5% per yearRoyal Mail has lost 40% of corporate business Royal Mail rivals will handle one in five of all letters posted in the UK Source: Royal Mail |
| Royal Mail says it has already lost about 40% of its bulk mail business to rival postal operators. | Royal Mail says it has already lost about 40% of its bulk mail business to rival postal operators. |
| Most recently, an £8m contract with Amazon and a £12m contract with the Department for Work and Pensions have fallen to private firm UK mail, owner of Business Post. | Most recently, an £8m contract with Amazon and a £12m contract with the Department for Work and Pensions have fallen to private firm UK mail, owner of Business Post. |
| And some private mail firms are actively cashing on the crippling strikes affecting Royal Mail's service. | And some private mail firms are actively cashing on the crippling strikes affecting Royal Mail's service. |
| One of the group's largest rivals, DX, had even offered to help Royal Mail to make its urgent deliveries over the period of the strike. | One of the group's largest rivals, DX, had even offered to help Royal Mail to make its urgent deliveries over the period of the strike. |
| The company told the BBC it expected to gain about £10m of business as a result of the strike action, although it expected the damage to Royal Mail to be minimal. | The company told the BBC it expected to gain about £10m of business as a result of the strike action, although it expected the damage to Royal Mail to be minimal. |
| 'Deeply disappointed' | 'Deeply disappointed' |
| A union statement released after Wednesday's talks said the Royal Mail had "simply concentrated on reiterating their previous offer that the workforce has already overwhelmingly rejected". | A union statement released after Wednesday's talks said the Royal Mail had "simply concentrated on reiterating their previous offer that the workforce has already overwhelmingly rejected". |
| The Royal Mail said it was "deeply disappointed" that another strike had been called. | The Royal Mail said it was "deeply disappointed" that another strike had been called. |
| A spokesman said: "Further strike action will achieve nothing. | A spokesman said: "Further strike action will achieve nothing. |
| "The union is saying nothing new and is simply ignoring the challenge confronting everyone in Royal Mail which is the absolute need to modernise - as all our major rivals have already done. | "The union is saying nothing new and is simply ignoring the challenge confronting everyone in Royal Mail which is the absolute need to modernise - as all our major rivals have already done. |
| "Strike action only makes it even tougher for Royal Mail to secure its future and continue to provide great quality of service for its customers." | "Strike action only makes it even tougher for Royal Mail to secure its future and continue to provide great quality of service for its customers." |