UK government decides to play hardball regarding postal strike
The UK government has today stepped into the breach after peace talks between the Royal Mail and the unions failed and both parties went their separate ways. The government has now shown its hand and is now willing to take on the unions with Royal Mail management also ready to play hardball and reduce the power of the unions within the operation.
Quite simply, this ongoing issue between management and the unions has the potential to not only ruin Royal Mail in the short to medium term will also put its long-term future at risk. If you are a business and you depended upon your goods being delivered, cheques being received and cheques being sent, would you put your life in the hands of Royal Mail bearing in mind the current relationship between the management and the unions?
The truth is that Royal Mail has been under pressure for some time due to financial constraints and an ever-growing pension deficit. A recent attempt by the UK government to sell-off part of the business failed and it looks unlikely that any similar action will be taken in the short term because of the reduced value of the operation in the eyes of investors. Surely the unions and the management can come to some kind of arrangement which would be beneficial to both parties because ultimately they all have very much to lose!
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