This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/6896893.stm

The article has changed 8 times. There is an RSS feed of changes available.

Version 4 Version 5
Strike action hits postal service Strike action hits postal service
(about 2 hours later)
A second 24-hour strike by Royal Mail staff is under way as part of a row about pay and job security.A second 24-hour strike by Royal Mail staff is under way as part of a row about pay and job security.
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". The Communication Workers Union (CWU) said most of its 130,000 members - more than 90% - had joined "one of the best supported strikes in memory".
But Royal Mail said support "was patchy" adding that all 14,220 Post Offices were operating "as normal". But Royal Mail said support "was patchy", adding that all 14,220 Post Offices were operating "as normal".
The CWU is in dispute with Royal Mail over the company's 2.5% pay offer and modernisation plans.The CWU is in dispute with Royal Mail over the company's 2.5% pay offer and modernisation plans.
Royal Mail aren't treating these strikes seriously CWU General Secretary Billy Hayes Royal Mail aren't treating these strikes seriously Billy Hayes, CWU general secretary
The 24-hour walk out follows a stoppage last month, which was the first in more than a decade.The 24-hour walk out follows a stoppage last month, which was the first in more than a decade.
About 100 striking postal workers travelled on an open-top London bus at noon to deliver an oversized letter to Royal Mail executives demanding a return to proper negotiations. About 100 striking postal workers travelled on an open-top London bus at noon to deliver an oversized letter to Royal Mail executives at the company's headquarters demanding a return to proper negotiations.
In a statement released shortly after this event, the Royal Mail said it "remains very willing to meet the union at any time to explain the company's position". "This is the only letter being delivered in the UK today and it is a very crucial one in that the future of the company and the postal services rests on it being read," CWU general secretary Billy Hayes told strikers.
ImpasseImpasse
Earlier in the day, 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 denied that the CWU's symbolic act was the only UK mail delivery, arguing the percentage of postal workers coming to work "ranged from 5% to more than 60% around the country" - a better turnout than the previous 24-hour strike two weeks ago.
"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 chairman
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.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.
Union officials have argued that workers' pay should rise in line with inflation, which Royal Mail insists it cannot afford. In a statement, Mr Hayes said: "We are consistently trying to negotiate with Royal Mail but to be blunt they have no interest. They refuse to take the dispute 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 has refused to grasp or understand the harsh commercial reality of the market in which Royal Mail now operates Allan Leighton, Royal Mail chairman
But the company says that changes are essential in order to compete with rival mail firms. Union officials are due to meet again next Tuesday, when more strikes could be announced.
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. The union has argued that workers' pay should rise in line with inflation, which Royal Mail insists it cannot afford amid a "serious competitive" threat from a growing number of more efficiently-run rivals.
The Royal Mail's modernisation plans, for which £1.2bn of public funds have been earmarked, 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 secure a future for the company and its people".
Fierce competitionFierce competition
"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," Mr 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 and the consequences for all of us if we don't modernise - and do it quickly," said Royal Mail chairman Alan Leighton.
"Their decision to call another strike changes nothing," he added. Since Royal Mail lost its monopoly status on post deliveries at the start of 2006, 17 operators have entered the UK mail market, creating fierce competition for the former monopoly - 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 former monopoly - 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, including recently an £8m contract with Amazon.
Most recently, an £8m contract with Amazon and a £12m contract with the Department for Work and Pensions have gone to private firm UK mail, owner of Business Post. And some private mail firms are actively cashing on the industrial action 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, has offered to help Royal Mail 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.