Socialist Worker

Royal Mail’s pension consultation about to close

by Yuri Prasad
Issue No. 2083

Royal Mail’s consultation on its proposals to change the company’s pensions scheme is drawing to a close.

Proposed changes, including raising the retirement age to 65 while reducing scheme benefits, have caused widespread outrage among members of the CWU postal workers’ union.

Some union members would lose up to £25,000 in benefits that are supposed to be “deferred wages”.

Royal Mail bosses say that a shortfall in the scheme’s revenue means that cuts are unavoidable but they do not mention that for seventeen years the company refused to make its share of the payments. Nor do they tell workers about their own luxurious pension arrangements.

Unfortunately some of the CWU’s leadership have accepted the argument that there must be change if the scheme is to survive. This position ignores the government’s responsibility towards the pension provision of workers in the public sector.

Union activists must push hard for a political campaign and strikes over any threat to the postal workers’ pensions. Pressure upon Gordon Brown on this issue would strike a chord with millions of other workers in Britain who have found their pension schemes under attack.

Click here to subscribe to our daily morning email newsletter 'Breakfast in red'

Article information

Tue 8 Jan 2008, 19:08 GMT
Issue No. 2083
Share this article



Mobile users! Don't forget to add Socialist Worker to your home screen.