Royal Mail profits prove public sector success

14.05.09

The CWU today welcomes Royal Mail’s doubling of profit as proof that the company can be a successful market leader and modernise under full public ownership.

Dave Ward, CWU deputy general secretary, said: “We feel vindicated by today’s results for our position on full public ownership for the company. While private mail companies, including TNT, have seen huge profit reductions, Royal Mail’s operating profit has doubled.

“We believe investment in and the pace of modernisation needs to now be stepped up. It’s crucial that upgraded machinery for automated sorting is rolled out and further modernisation to products and services brought in.

“We also expect the company to change its position on a pay freeze for staff. Royal Mail is making record profits so postal workers should be rewarded for their contribution to the success of the company. A pay freeze is not defendable in this situation.

“Today’s results make it easy for the government to back the pensions element of the Postal Services Bill and drop the privatisation part. The public, MPs and postal workers want the government to see sense and keep the postal service public.”