Paragon: 'Not enough'
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• Parcelforce is offering unions a £280 one-off payment instead of imposing a wage freeze — but the cash has been rejected as "not enough".
The Union of Communication Workers, which represents 10,000 employees, is holding out for a better deal although the parcels giant revealed a £75m loss last month (CM11-17 July).
UCW general secretary Alan Tuffin says: "Negotiations continue, but the major obstacle is that Parcelforce is simply not putting enough money on the table — the union is looking for a mixture of lump sum payments and a boost in weekly pay."
Parcelforce says it is not its policy to discuss paytalks while they are going on.
The two sides met on 7 August when Parcelforce broke the negotiation deadlock with a cash offer. The opening offer of £250 was increased to £280 — £.180 to be paid in December and 2.100 in February, with normal wage negotiations to resume in June 1992.
However, the UCW wants the £280 to be paid in October — accompanied by a percentage increase on weekly pay. It also wants the lump sum to be consolidated in the basic rate.
The UCW says Parcelforce is now considering whether it can increase its offer to include a percentage increase on wages — it is thought union members are unlikely to accept a one-off payment.
The two sides meet next on 20 August when the UCW hopes for an improved offer. Although Parcelforce showed a £75m loss in the Post Office results, £60m of this was due to Royal Mail money wrongly allocated to Parcelforce.