Stemming the tide

LOUISE NOUSRATPOUR on postal workers' fight against privatisation.

Louise Nousratpour
Friday March 20, 2008
The Morning Star

THE Communication Workers Union is leading a Europe-wide campaign to stem the tide of privatisation in the postal sector in light of new EU laws dictating that all member states must open their markets by 2011.

Last week, the CWU invited union delegates from 19 European countries, including France, Germany and Holland, to attend a "working conference" aimed at developing a co-ordinated political and industrial strategy against the regressive plans.

Even senior representatives from British regulator Postcomm and the Royal Mail were invited to justify why they are allowing private profits to override the legal duty of delivering a universal service at an affordable price.

Britain rushed to full "liberalisation" in January 2006, three years before the original EU timetable.

The measure has led to poorer services and higher prices for ordinary costumers, while workers' jobs and conditions have come under vicious attacks, union officials warned.

Opening the two-day event in central London on Wednesday, general secretary Billy Hayes urged delegates to see the British experience as a "clear warning."

Mr Hayes held the government, Postcomm and Royal Mail management collectively responsible.

He condemned ministers for introducing the "Thatcherite" policy and accused Postcomm of tipping the balance of competition in favour of the private sector.

Mr Hayes also charged Royal Mail management with deliberately running the service into the ground to prepare it for full privatisation at a bargain price.

CWU deputy leader Dave Ward stressed: "It is important for unions across Europe to take stock of what liberalisation could mean if we don't fight together against the worst aspects of this policy."

The government has conceded the union's demand for an independent review of the impact of privatisation on the postal sector.

Mr Ward welcomed the investigation as an opportunity to force through changes that would salvage what is left of Royal Mail as a public service and to protect members' pay.

CWU members staged a nine-day strike across Britain last year in a bitter dispute over plans to drive down pay.

"Our members stood firm against concerted attacks from government and Royal Mail management," Mr Ward recalled.

"We defeated their attempt to introduce market-rate pay."

In a stark warning to Labour's re-election campaign, he added: "We are at a crossroads in our relationship with the government.

"They have done us wrong and we see this review as an opportunity to put things right."

The CWU is working with Unite on a "robust" response to the review, urging more government investment in Royal Mail, a level playing field to allow fair competition and a guaranteed minimum wage across the sector.

Current Postcomm regulations allow private competitors to cherry-pick lucrative business mail and dump the less profitable services on Royal Mail, which is unfairly obliged to meet the cost of maintaining a universal service at a fixed low price.

Unite delegate Paul Reuters observed: "The private sector is being subsided by the Royal Mail."

Mr Ward added: "Private competitors may appear to be fighting for a share of the market, but, in reality, they are carving up the profits between them and are working together against their common enemy - the workforce.

"In the interest of workers everywhere in Europe, we must co-ordinate a political and industrial strategy to defeat them."