Royal Mail to axe 1,600 jobs

Royal Mail's announcement today that it will cut 1,600 jobs as part of an ongoing efficiency drive could spark industrial action, Unite has warned.

The mail operator has entered into a formal consultation with unions Unite and the Communication Workers’ Union (CWU) over its proposals, which will result in a net workforce reduction of 1,300 after plans to create 300 new roles are taken into account.

Royal Mail said the vast majority of employees affected would be head office managerial roles with “some impact on support and administrative functions”. Frontline employees, including postmen and women, would not be affected it stated.

The proposals are expected to deliver cost savings of around £50m, with around £25m to be realised in 2014-15. Around £100m in restructure costs related to the move will result in a total charge of £230m, £70m more than forecasted, in the postal operator’s full-year results. Royal Mail's financials are due to be published on 22 May.

Unite officer for Royal Mail, Brian Scott, said it was no coincidence that the annoucement had been made just prior to the publication of the organisation's first set of full accounts since privatisation.

“First the government sells-off Royal Mail on the cheap and now the newly privatised service is ruthlessly sacrificing jobs," he added.

“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. 

“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.”

Meanwhile CWU deputy general secretary Dave Ward called the cuts “deeply concerning”.

“We understand that the majority of these job losses will mainly be head office managerial staff rather than postal workers but we will fight to protect as many jobs as possible.”