Rachael Maskell MP claims Royal Mail wants to be ‘next P&O Ferries’

Rachael Maskell also called for Royal Mail to be brought back into public ownership, as she accused the Government of standing by as the “next chapter of fire and hire plays out”.

But Royal Mail rejected claims it is planning to sack workers, adding it had the "best pay and conditions" in its industry.

The York Central MP’s comments came during a Westminster Hall debate on the future of postal services and after members of the Communication Workers Union (CWU) staged a series of strikes last year in a bitter row over jobs, pay, and conditions.

Fresh talks to resolve the long-running dispute started on Monday and will continue until January 20.

Labour MP Ms Maskell said: “Royal Mail is being driven into the gig economy while senior managers are milking profit funnelling £560 million in payouts to shareholders.”

She added: “Royal Mail is wanting to break up the universal service obligation, sacked 10,000 posties and be the next P&O (Ferries) as it recruits agency staff and owner drivers at the expense of the current workforce, further ripping up the pathway to change without having to give account.

“And this Government is standing by as this next chapter of fire and hire play out.”

P&O Ferries sacked 786 staff members in March last year and promptly hired agency workers on lower wages and with different rota requirements.

Striking postal workers in York

Business minister Kevin Hollinrake told MPs the Government doesn’t “get involved in negotiations”, adding: “I welcome the fact the CWU and Royal Mail are sat down with ACAS, I understand, trying to resolve this dispute.”

The MP for Thirsk and Malton went on: “The Government is not involved in negotiations because it’s a private company, but we will monitor the dispute closely and urge Royal Mail and the Communication Workers Union to reach a resolution as soon as possible.”

• Royal Mail workers in York set to walkout in fresh strike over pay

On the company dishing out money to its shareholders, the business minister said: “I don’t think it’s wrong to distribute proceeds of investment returns where they are fair and proportionate.”

Moreover, Mr Hollinrake said he does not believe “renationalisation is the answer”, before telling MPs: “While, there are undoubtedly challenges facing a Royal Mail, the Government is clear that renationalising the business isn’t the answer.

“One of the primary reasons for the sale was to enable Royal Mail to access the capital it needed to invest in and grow the business.”

A Royal Mail spokesperson said: “We have written to the CWU on multiple occasion to correct the false allegations that Royal Mail is planning to 'sack' thousands of workers and wants to become 'another courier company'. This is simply not true.

"The statements are designed to mislead and create fear and uncertainty amongst our employees. We have already announced that reductions in 10,000 full time equivalent roles – which have become necessary because of industrial action, the need for better productivity and lower parcel volumes following the pandemic – will be achieved through natural attrition, reducing temporary workers, and a generous voluntary redundancy scheme which has been oversubscribed.

“We are proud to have the best pay and conditions in our industry. In an industry dominated by the ‘gig economy’, insecure work, and low pay, our model sets us apart and we want to preserve it.  Despite losing more than £1million a day, and already offering a package that pays up to 40 per cent more than our competitors, we have made a best and final pay offer worth up to nine per cent.  This has been rejected by the CWU.

“Royal Mail is committed to reaching an agreement to resolve the current pay and change disputes to secure the company's future and its employees' long-term job security. On Friday, January 6, we announced that we would be recommencing facilitated talks through Acas, and these talks started this week.”