Oct 3, 2017

Royal Mail cannot afford to deliver more work to the ‘gig economy’

A large number of his supporters in the Communication Workers Union may have just made the same inadvertent error: diverting work from better-paid Royal Mail staff to gigging freelancers with a van. Given the competition now provided by gig economy groups, analysts warn that customers can easily transfer their business to rivals - threatening more Royal Mail jobs. All of Royal Mail's current rivals were created in response to 1970s and 80s strikes: Whistl, Yodel, Hermes, and UK Mail. While many of these adopt a self-employment model with minimal benefits, Royal Mail points out that it pays staff £23,000 after just one year - more than junior teachers or nurses receive - and has 63 per cent of its workers in a defined benefit pension compared with 6 per cent in the private sector nationally. Do Royal Mail workers really want to make that journey back in time?

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