As Royal Mail workers return from four days of industrial action, small businesses are bracing themselves for yet more severe disruption to postal services next week.

Last week, the Communication Workers’ Union (CWU) announced that it was planning more strikes next week if an agreement could not be reached during its latest walkout.    

default

With disputes over pay, pensions and flexibility remaining unsettled, a series of 24-hour strikes are expected to resume on Monday 15 October.    

default

The CWU said: “Real progress has been made in many areas, but there is agreement in none. The offer includes a pay increase of 6.9% over two years but this is subject to linking unacceptable strings including a reduction in pensions benefits.    

default

“Royal Mail’s proposals also include flexibility proposals that mean, among other things, that postal workers will not know what job they are doing from one day to the next.”   

default

However, business groups have warned that successive strikes are creating severe delays and a backlog of undelivered post, which could be crippling smaller firms, many of which rely on the prompt delivery of invoices and cheques to maintain a healthy cashflow.

default

David Frost, director general of the British Chambers of Commerce (BCC), commented: “By dragging this strike on the CWU is both harming business and damaging the economy.”   

default

In this afternoon’s question time, prime minister Gordon Brown added that the dispute should be settled as soon as possible by negotiations between the Post Office and the workforce.  

default

He said: “There is no justification for the continuation of this dispute. It should be brought to an end on the terms that have been offered as soon as possible and I urge the workforce to go back to work.” 

default

© Crimson Business Ltd. 2007