Unions at Parcelforce reject pay freeze call
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• Unions at Parcelforce have rejected management attempts to impose a wage freeze after the company lost £75m in its first year of trading.
Parcelforce wants the unions to accept a pay freeze until April next year when wages will be reviewed again. "We are determined to break even in this financial year," says operations director Jim Woodman.
Negotiations opened last week, when Parcelforce told the
unions that it needs to reduce its operating costs: wage bills account for a third of these costs. However, there are no plans to add to the 550 job cuts announced earlier this year (CM 9-15 May).
The Union of Communication Workers has 10,000 members at Parcelforce, including drivers and depot staff.
It won a 9.8% increase last July and was due to meet the company again yesterday (17 July) to discuss its latest claim.
"A pay freeze is not a viable option," says a UCW spokesman. "We will be putting forward alternative suggestions including productivity deals, flat rate increases and a delayed starting date for implementation."
0 Parcelforce has opened new depots in Poole, Perivale, Romford, Stockport and Middlesbrough, creating a total of 107 new jobs.