THE Royal Mail yesterday became the latest company to warn workers face a pay freeze this year because of the recession.
The company told trade unions it did not envisage being able to increase wage rates for any staff, including postal workers, managers and directors.
It warned it was facing a "very tight financial position" and said
the move will apply to all w
orkers across the Post Office, Parcelforce and other parts of the business.
The letter invited unions to a meeting with the Royal Mail to discuss the current "financial challenges" faced by the group.
It also said the global economic turmoil had worsened the decline in postal markets in the UK and around the world.
The UK mail market is now declining at between 8 per cent and 10 per cent compared to a year ago, and for every 1 per cent decline in volume, income is reduced by £7 million.
The Communication Workers Union condemned the pay freeze as "appalling" and urged the company to reconsider.
The union's deputy general secretary, Dave Ward, said: "The Royal Mail posted its best financial results for years in December and outperformed all of its financial targets.
"The people who run Royal Mail have again misjudged an important decision. For Britain's highest paid civil servant (chief executive Adam Crozier] to impose a pay freeze on workers who earn less than the UK average wage is outrageous. This inequality will lead to strife.
"Royal Mail is attacking the public's postal service by reducing hours and services – now this is a threefold attack on services, jobs and terms and conditions which makes industrial conflict inevitable."
