CONTROVERSIAL plans to part-privatise the Royal Mail were a "defining moment" towards a possible breakdown in union-Labour relations, the government was warned yesterday.
The leader of the 240,000-strong Communication Workers Union said plans to allow a firm to take a minority stake in the business were straining relationships with the government and Labour "towards breaking point".
The union already has an agreed
policy to ballot members on disaffiliation from Labour should privatisation of Royal Mail take place, and officials expect fresh calls for action in response to plans announced by Business Secretary Lord Mandelson.
Billy Hayes, general secretary of the CWU, said: "Privatisation of Royal Mail is a totemic issue for postal unions."
Mr Hayes spoke out after plans were revealed to hold a two-day summit between Royal Mail and union leaders next month to discuss modernising the business in a move expected to cut jobs.
Royal Mail has written to staff in some of its divisions setting out options, including offers of voluntary redundancy or part-time work.
Dave Ward, CWU deputy general secretary, said: "Royal Mail is pushing for an arbitrary 10 per cent cost saving. This is not agreed by the CWU and could have a huge impact on both job losses and a reduction of full-time jobs to part-time jobs."
