An Post union delivers strike threat

The largest union in An Post has warned that industrial action is looming at the company and could take place during the key Christmas period.

The Communication Worker's Union (CWU) said management's approach to overtime payments was one of the reasons industrial action might take place. Overtime is understood to be costing An Post €17 million annually.

Talks on this and several other issues ended at the Labour Relations Commission (LRC) yesterday. The talks concerned management demands for 1,450 job losses.

Unions have been discussing how to achieve this and also radically restructure the collection and delivery business of the company.

The company is offering a 5.3 per cent pay offer over three years in exchange for agreeing major change.

Mr Seán McDonagh, national officer with the CWU, said he could not guarantee that strike action would not take place between now and Christmas. His union is due to consider a package of cost savings measures on Monday. The measures have emerged from the LRC talks.

The union has already raised concerns about several of these proposals, including one to subcontract out rural deliveries to self-employed contractors. The company has said the collection and delivery system needs an urgent overhaul and the company must do something to stem its losses. Chief executive Mr Donal Curtin has forecast an operating loss in 2004 of about €30 million.

Yesterday, Mr McDonagh, speaking on RTÉ Radio, said it was possible industrial action could take place in the weeks ahead.

Asked whether he was prepared to rule out such action, he said: "I couldn't give any guarantees in that regard. In fact, because the company has approached the discussions in the manner they have, and continue to castigate our members for working the high levels of overtime, I think the union may have to just step back a bit at this stage and just look whether we should continue to work the high levels of overtime that the company are demanding."

He said this might mean not doing this work and instead taking industrial action.