Mandelson Attacks CWU Accusing It Of Scare Tactics

Writing in the is weekend's Observer newspaper, Peter Mandelson attacked the CWU accusing it of deploying scare tactics in its campaign against the privatisation of Royal Mail.

Meanwhile, Billy Hayes, CWU General Secretary has responded by saying he was surprised by the use of such language, especially as he has a good relationship with Mandelson and was attending a meeting on saturday with him where the two were sharing jokes!

BBC News On-Line website carries an interview with Billy where he responds quite calmly to Mandelson's latest outburst. click the image to the left to go watch.

The Observer article says that the attack from Lord Mandelson has widened the split between the government and the Communications Workers' Union, and at least 130 Labour MPs and two members of the cabinet who are opposed to partial privatisation.

The article goes further:

"Mandelson said there would be no turning back from the 30% sell-off, warning that the party would be kicked out of office if it it retreated and showed itself to be tired and afraid of making a decision.

He insisted that, despite a trail of unfavourable polls, Labour could still win a fourth term, but that this would depend on it being able to demonstrate it had effectively dealt with the economic downturn and remained the "change-making" force in British politics."

It also adds that "The business secretary accused union leaders of fighting an "ideological" battle that risked losing the pension fund bail-out and the guarantee of a continued "universal, six-day-a-week mail service" enshrined in the legislation."

It quotes Mandelson as saying:

"I think a lot of the workforce of the Royal Mail won't be thinking of the politics of this, but about their pension and about their job security. Both are in danger if we do not sort out the finances of the Royal Mail"

Turning attention to Labour MPs he says in the article:

"A number of Labour MPs who do not have an ideological fixation one way or the other none the less say to me: 'Why now? Why invite controversy and disunity?

And my answer is that, as the government, we cannot duck difficult questions and choices. Some in the party may be weary of taking decisions, but that simply signals that we're ready for a rest, inviting electoral defeat."

The full article can be read here

Last Wednesday, and backing up the CWU arguments that the Royal Mail is in profit and does not need to be privatised, a news item on BBC News On-line stated:

"All four Royal Mail businesses were profitable in the nine months to Christmas last year, for the first time in almost 20 years.

Royal Mail Letters, the Post Office, Parcelforce Worldwide and the European parcels business GLS contributed to an operating profit of £255m.

That nine-month figure compares with £162m for the whole of the previous financial year.

Despite the competition and reductions in mail volumes as a result of the use of e-mail, Royal Mail said it was on track to achieve annual profit of almost double last year's level."

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