Royal Mail Confirms Plans To Axe 1,300 Jobs

A union has raised the threat of industrial action after Royal Mail confirmed it was consulting on plans to cut 1,300 jobs, mainly managerial staff.

Unite, which represents 7,000 managers at the firm, described the proposals as "ruthless".

Royal Mail, which was controversially privatised last year, said no delivery staff would be affected by the move, which aims to save £50m annually.

Under the plans, 1,600 operational and head office managerial positions would go but 300 other "enhanced" roles would be created and it would soon begin talks with the Communication Workers Union and Unite.

Moya Greene, Royal Mail's chief executive, said: "We are continuously improving our efficiency, whilst maintaining our high quality of service.

"We need to do so in order to effectively compete in the letters and parcels markets. This is the best way to ensure the continued delivery of the Universal Service and the good quality jobs we provide for our people."

News of the proposed job losses broke just 48 hours after Sky News revealed that the Business Secretary Vince Cable is demanding that the board of Royal Mail limits a pay rise for Ms Greene.

Unite said it was demanding there were no compulsory redundancies.

The union's officer for Royal Mail, Brian Scott, added: "First the Government sells-off Royal Mail on the cheap and now the newly privatised service is ruthlessly sacrificing jobs.

"We do not believe that it's a coincidence that this announcement has been made just before the company prepares to announce its first full set of accounts since privatisation.

"It's more proof that Royal Mail's primary reason for existing is now about making profits rather than serving the nation.

"For all that Royal Mail managers have been through they do not deserve to be treated in this way.

"Unite is demanding a commitment to no compulsory redundancies on fair terms and an effective method for redeployment within the restructured organisation.

"If Royal Mail refuse we will have no alternative than to consider a ballot for industrial action."

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