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Hi,

got a business question about trade unions and industrial action and i have chosen royal mail to talk about

could someone tell me the reasons why the staff have gone on strike and what action the trade unions have taken in the matter?

Thanks
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Posted: 2007-07-01 17:52:11
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http://news.bbc.co.uk/1/hi/business/6251932.stm


"Workers rejected a 2.5% pay offer and said they were worried that modernisation plans would see jobs cut."

"Unions have argued that Royal Mail's plans for modernisation would lead to 40,000 job losses, and have threatened further strikes."

Also...

Q&A: Royal Mail strike
Mail vans and worker unloading post
Royal Mail has been losing key contracts to rival postal services
About 130,000 Royal Mail workers began a 24-hour strike on Friday - the first such industrial action in more than a decade.

What is the strike about?

Essentially it is over pay and potential job cuts.

The Communication Workers' Union (CWU) has rejected a 2.5% pay offer and warned that Royal Mail's modernisation plans will lead to 40,000 job losses.

Postal workers' pay should rise to the national average over the next five years, the union argues, but Royal Mail says this would amount to a 27% increase which it could not afford.

The CWU is also opposing Royal Mail's plans to close 70 post offices and relocate the services into branches of WH Smith.

What does Royal Mail say?

Since the liberalisation of the UK postal service in 2005, there are now 17 other companies competing against Royal Mail, especially in the more profitable business mail sector.

It says it has already lost 40% of this market to rivals.

In order to compete, it has to modernise, Royal Mail argues, saying failure to do so has already cost it government deals and, recently, an £8 million contract with online retailer Amazon.

About £1.2bn is being invested to try to ensure the organisation can be more competitive, Royal Mail says.

What does the strike mean?

There will be no deliveries by union members on Friday, while sorting offices will also be closed until 0300 BST on Saturday

Who will be affected?

Pretty much everybody, since mail will not be delivered, collected or sorted.

The Federation of Small Businesses says its members will particularly suffer, because they are more likely to rely exclusively on Royal Mail.

"A cheque delayed in the post can mean the difference between life and death for a small business," a spokesman said.

What are the long-term implications?

Some believe that the strike will encourage more businesses to seek alternatives to Royal Mail.

The British Chamber of Commerce says that firms who still rely on cheques may step up their efforts to move to online payments and consider using the services of Royal Mail's rivals.

Is this a one-off day of strikes?

Not necessarily. The CWU has warned that unless the deadlock is broken, further strikes will take place.

However, no strike is scheduled for next week.

"This provides Royal Mail with a window of opportunity to begin fresh talks," said the CWU's deputy secretary, Dave Ward.

Taken from http://news.bbc.co.uk/1/hi/business/6252202.stm
Hope this helps...
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Posted: 2007-07-01 18:03:56
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wow lots of info there!

cheers mate, appreciated!
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Posted: 2007-07-01 18:17:56
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Oh f**k it, send an e-mail!
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Posted: 2007-07-01 20:39:41
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lol u watchin Sir Trevor Mc 2nite?
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Posted: 2007-07-01 21:36:51
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yep lol!
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Posted: 2007-07-01 22:17:39
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