Royal Mail sell-off could cost New Labour a fortune

I think it’s a given that privatising Royal Mail will be a disaster for its workers and customers.

Now it’s clear that it will cost New Labour financial and political support from the Communication Workers Union – who last disaffiliated from Labour in 1927 after the general strike!

No doubt, other unions would be minded to follow the CWU like those in dispute with employers – and the government! – over social dumping in the construction industry.

Leaked plans reveal that Royal Mail’s millionaire bosses want to sack 10% of the workforce.

The Morning Star comments:

Wrecking Royal Mail
(Friday 06 February 2009)

WHOEVER invented the word “modernisation” has some serious explaining to do.

For starters, isn’t progress supposed to make things better? If so, why does modernisation, an idea so beloved of new Labour drones and incompetent businessmen, always seem to involve taking something that works and smashing it to pieces?

Royal Mail is far from the only example of such modernisation – tried taking a train recently? – but it’s one of the worst.

A public service that was among the finest in the world has been reduced to a pale shadow of its former self by a stream of “modernising” cuts. Two reliable and punctual deliveries a day have become one deeply unreliable delivery. Some 2,500 post offices are closing and thousands more could follow, with devastating effects on communities across Britain.

Staff are being burdened with ridiculous workloads as a result of 50,000 job losses in recent years.

And now Royal Mail bosses are planning another round of cutbacks, aiming to slash 10 per cent off costs despite the firm’s soaring profits.

The Communication Workers Union, whose members are working flat out to maintain standards at Royal Mail, calls the cuts “panic measures that will hit the quality of service.”

The union is right, but the cuts are not just about boosting profits in the current crisis.

They are part of plans to fatten up Royal Mail for private-sector consumption, doling out the profitable slices to big business while leaving the taxpayer to subsidise the loss-making parts such as the post office network.

This has long been a goal of new Labour and the privatisation-obsessed regulator Postcomm, starting when postal services were opened to private competition in 2006 – a measure which has benefited only big business at the expense of smaller firms and the public.

Lord Mandelson’s plan to privatise part of Royal Mail is a shove that will send the postal service tumbling down a very slippery slope.

Along that slope lies more and more cost-cutting and more and more “modernisation,” until Royal Mail lies in ruins at the bottom.

It’s an extreme threat that needs extreme measures to counter. So the CWU is right to take a bold stance in defence of this vital service by threatening to break its links with Labour if privatisation is pushed through. This is not a step that any union would take lightly. But what else is it to do, after so many betrayals by what is supposed to be the party of working people?

New Labour has allowed, even encouraged Royal Mail bosses to slash jobs and standards left, right and centre. It raised no objection when Postcomm ordered the “liberalisation” of mail delivery far quicker than required by the EU postal directive.

Now, ministers are backtracking on their 2005 manifesto commitment and defying their party’s own official policy by inviting the private sector to cash in on Royal Mail at everyone else’s expense.

New Labour has proved time and time again that it will not listen to the public, will not listen to its own members, will not listen to the unions which founded the party and which provide so much of its financial and campaigning muscle.

It will not listen to the overwhelming evidence that privatisation has been an utter failure across the public services and will be a disaster for Royal Mail.

We hope the CWU’s threat to disaffiliate is the shock therapy ministers need to jolt them back into reality.

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3 Responses to “Royal Mail sell-off could cost New Labour a fortune”

  1. anglonoel Says:

    ‘They are part of plans to fatten up Royal Mail for private-sector consumption, doling out the profitable slices to big business while leaving the taxpayer to subsidise the loss-making parts such as the post office network.’

    If the Post Office sell-off goes ahead, I bet the taxpayer will end up subsidising the big business owned parts as well…it seems par for the course these days.

  2. David Lindsay Says:

    This is the stuff. Every red cent of union funding in the US buys something specific, and there is no restriction in principle to any one party. That is what we need over here. Brothers and sisters, it’s over to you.

  3. Nathan Says:

    I really hope we don’t lose the post office. It was bad enough losing the trains, and still paying for them. I’m sick of my post arriving a day or two late. I completely agree with your analysis, our welfare is slowly being stripped away from us.


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