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Strike action hits postal service Strike action hits postal service
(about 1 hour later)
A second 24-hour strike by Royal Mail staff is under way as part of a row over pay and job security.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. The Communication Workers Union (CWU) said up to 130,000 of its members - about 90% - had joined "one of the best supported strikes in memory".
Eleventh-hour talks on Wednesday between the union and Royal Mail chairman Alan Leighton failed to break the impasse over pay. But Royal Mail said initial indications suggested many of its staff came to work as normal on Friday.
The CWU is in dispute with the Royal Mail over the company's 2.5% pay offer. The CWU is in dispute with Royal Mail over the company's 2.5% pay offer and modernisation plans.
Locked in battle Royal Mail aren't treating these strikes seriously CWU General Secretary Billy Hayes
Union officials have argued that workers' pay should rise in line with inflation, which Royal Mail says it cannot afford. The 24-hour walk out in protest over pay and possible job cuts follows a stoppage last month - the first in more than a decade.
About 100 striking postal workers were travelling on an open-top London bus to deliver a letter to Royal Mail executives demanding a return to proper negotiations.
Impasse
CWU General Secretary Billy Hayes told the BBC he wanted sensible negotiations with the Royal Mail, but said he felt that was not on offer and signalled further strikes could be on the cards.
"Royal Mail aren't treating these strikes seriously," he said.
Mr Hayes added the union was unhappy that Mr Leighton had not sat down face to face with them in 11th-hour talks earlier in the week, but instead discussed the dispute in a "squeezed" 40-minute conference call.
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 chairmanThe 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. The government could now get involved in bringing the two sides to the negotiating table, with about 60 MPs adding their names to an early day motion tabled by Labour MP for Morecambe & Lunesdale, Geraldine Smith, calling for an end to the deadlock.
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. Union officials have argued that workers' pay should rise in line with inflation, which Royal Mail insists it cannot afford.
CWU General Secretary Billy Hayes told the BBC that the Royal Mail was not taking the strikes "very seriously". 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.
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. But the company says that changes are essential in order to compete with rival mail firms.
Mr Hayes suggested further action would be taken if necessary. It also says a £1.2bn loan from the government needs to be spent on new technology to transform its operations, not on higher wages.
Fierce competitionFierce 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." "Yet again the union has refused to grasp or understand the harsh commercial reality of the market in which Royal Mail now operates and the consequences for all of us if we don't modernise - and do it quickly," said Mr Leighton in a statement released hours before the strike began.
He added: "Their decision to call another strike changes nothing."
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 MailUK 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 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, has offered to help Royal Mail 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'
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.
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.
"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."