Crisis talks to avert post strike

Postal workers want more pay

Union leaders and the Royal Mail are holding last-minute crisis talks to avoid industrial action.

Postal workers are expected to vote overwhelmingly for strike action, when the results of a ballot of 160,000 members of the CWU union are announced on Wednesday.

The postal workers are angry about a pay offer said by Royal Mail to be worth 14.5%.

The CWU says the offer had more strings attached than the Philharmonic Orchestra and was only worth 4.5% in "upfront" money.

'Commercial suicide'

Informal talks aimed at reaching a compromise and avoiding a walk-out were adjourned on Tuesday evening, and were due to resume again at 0900GMT on Wednesday.

But BBC Political Editor Andrew Marr said he expected the talks to break up without agreement.

He said the first post strike could be called "just ahead of the Labour Party conference", which starts on 28 September, with more industrial action to follow.

Postal workers are angry about low pay, with some taking home as little as £180 a week, he added.

Royal Mail bosses have warned industrial action will be "commercial suicide" for the organisation, which is battling to stem losses.

But MPs are to investigate claims it exaggerated its losses to justify plans to axe 30,000 jobs.

Disputed figures

The Trade and Industry Select Committee is to examine disputed figures showing the Royal Mail was losing £750,000 a day.

Dave Ward, deputy general secretary of the Communication Workers Union, called for the figures to be investigated to see if they were presented in a way which made the need for restructuring appear more urgent than it was.

The union said Royal Mail's financial position was already improving, with losses falling from more than £1bn in 2001/2002 to £611m in 2002/2003, while its core mail business made a profit of £66m.

A Royal Mail spokesman said last week said it was "ludicrous" to suggest its accounts did not give a true picture of its finances, as the union has suggested.

"The accounts we have published have been vigorously audited and give a true and accurate picture of the state of the company," he said.