Royal Mail Delivery Office Closures

Debate between James Frith and Stephanie Peacock

Wednesday 11th October 2017 Westminster Hall

[Stephanie Peacock (Barnsley East) (Lab)]

I associate myself with all the comments made by hon. Members about Royal Mail closures. Does my hon. Friend agree that the companies that he mentions have taken advantage of the gig economy to undermine workers’ rights and force many hard-working employees into uncertain terms and conditions and precarious work over the past decade?

[James Frith]

I thank my hon. Friend for her intervention and absolutely agree with her comments. In the struggle at Royal Mail, we see the argument being made by the workers for an economy that does not deny or prevent profits paying for public services, but argues, as I do, that workers and business models are not just assets to be sweated for maximum immediate gain. We are talking about industry that provides good employment and good career prospects, with development, investment and good profit, which is not exploitative—a sustainable business for the future. Towns such as mine still have the rows of terraced houses built by employers for their workers in a different age. That age has passed of course, but it was an example of employers looking after their workforce and not complaining of high turnover of staff or sick rates without connecting poor working practices, which they determine, to those issues. I am talking about short-sighted commercial ideals. It is not too much to expect that postal workers in my region and staff in post offices elsewhere should be well paid, can save for retirement and can trust the leadership of the organisation to step up to the opportunities that a changing economy brings.

The repeal Bill going through Parliament will challenge assumptions that we have as a country about working practices that we take for granted. Those measures were bombarded on the way into law and will be under attack as they are transferred across from the EU statute book, too. I am talking about health and safety at work, working conditions and treatment of staff, employed or self-employed. The ever more likely US-made models of employment that we see can undermine working conditions for millions of people trying to make ends meet if we do not argue for a settlement that works for all.

I support the plan, which does not ignore business needs and does not ignore the pressures that Royal Mail is under. A costed plan was submitted by the CWU with the backing of its members that included the appliance of risk to a pension pot to be put on the members of the pension scheme and away from the company. It is worth noting at this point that for 11 years Royal Mail did not contribute to the pension pot, while its workers continued to do so and, as has been mentioned, it is on course to take £1 billion out of the business while post offices close.

I support the responsible approach taken by the union and its understanding of the pressures the company is under, but Royal Mail has picked up the bits of the plan that work for it, and stripped that of its balancing qualities. The gain has been reframed but the pain has been retained. Royal Mail should be setting standards in this sector for the future, not dismissing the workers’ proposals to introduce wider scope for post offices and postal workers. A postal worker’s role can expand as per the workers’ plans. I know that there is enthusiasm among Royal Mail workers to broker a future as a unionised workforce, sharing the interests of growth, helping deliver it, in the certainty that they have a place in it and a share in its rewards.