Unite condemns Royal Mail’s ‘hidden agenda’ to cut costs but pay bonuses

17.02.10

Unite, the UK’s largest union, has today (17 February) condemned Royal Mail for covertly implementing a drastic cost cutting exercise without proper consultation with the union.

Unite believes that the main motivation for these cuts is not to address the impact of competition or the current tough economic circumstances, but a desire to ‘hit its numbers’ at the end of the financial year which would trigger huge bonus payments for senior executives of Royal Mail Group.

The union believes that an internal mandate has gone to senior executives instructing them to cut 20-25 percent of jobs in its support and back-office functions. Despite numerous requests from Unite to discuss Royal Mail’s long term strategy, only piecemeal consultation has taken place.

Paul Reuter, Unite national officer, said: “It is becoming evident that Royal Mail has a hidden agenda. That agenda is to strip out jobs regardless of the effect this will have on the business in the longer term or the people affected by it only to ensure its senior management have bigger bonuses.

“This is a company that is potentially out of control and playing fast and loose with the future of this vital service to the public.”

Brian Scott, Unite assistant national secretary, said: “We are being confronted by a constant stream of notifications of possible redundancies across the whole organisation. These have previously been small numbers, but this is developing into an unwarranted attack on our members' jobs as the numbers increase.

“Our members have been subjected to constant restructuring exercises over the last few years - all of which were said to prepare the business for the future but with jobs still going, this exercise has clearly failed. The Royal Mail ship remains rudderless as its executives continue to let down this great public service.”

Unite has today written to the soon to depart chief executive, Adam Crozier seeking an urgent meeting to discuss the Royal Mail's longer-term strategy.