Royal Mail faces its first national strike for 11 years after the main postal union today backed a walkout in a dispute over pay.

The Communication Workers Union (CWU) voted 77.5 per cent in favour of a strike — 66,064 votes to 19,119 — over a 2.5 per cent pay offer.

The union has asked for a 27 per cent pay rise over five years to bring remuneration into line with the national average of £403 a week.

But Royal Mail is holding to a below-inflation increase, arguing that its employees are paid 25 per cent above the industry average and that it cannot afford to pay any more.

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With such catch 22 arguments we may be in for a long battle

Christine Buckley, Industrial Editor

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BACKGROUND

• Royal Mail to be hit by strike

• Loyal Mail

• Royal Mail union predicts national strike

• Support for postal strike growing

• TNT wins the right to challenge

Related Links

• Royal Mail union predicts national strike

• Support for postal strike growing

• TNT wins the right to challenge

Delayed financial results from the state-owned group are soon expected to show a large drop in profits as it loses work to competitors.

The union is expected to set dates for a series of strikes next week unless Royal Mail makes a much higher offer.

However, union sources believe that that is unlikely and that walkouts are inevitable.

The last time that Royal Mail was hit by a strike it had a monopoly on the postal market.

Now it is in competition with several large rivals for a decreasing mail market.

However, it still handles virtually all deliveries, with rivals only collecting and sorting business mail. This is because the rivals do not yet have delivery workers.

The strike action will include more than 130,000 workers in delivery, counters and cash handling.

The union held three strike ballots, with the main one covering 127,000 over pay, a second one for 5,000 counter staff over pay and the third regarding post office closures.

The CWU is also campaigning against the company's business plan which involves cost cuts of more than £300 million this year.

Dave Ward, the deputy general secretary, said: "This 'yes' vote shows absolutely clearly that Royal Mail workers have rejected the company's business plan, the company's leadership and the unacceptable pay offers.

"Royal Mail leaders say they listen to their people; this is the clearest message they have ever had. Royal Mail has to listen and return to serious negotiations."

Alan Duncan, the Shadow Industry Secretary, said: “Royal Mail faces significant challenges arising from greater competition in the postal services market and falling mail volumes. Royal Mail’s management rightly believes that modernisation and improving productivity are essential to meeting these challenges.

“We are disappointed that CWU members have voted in favour of industrial action. A strike would be damaging to Royal Mail and its employees and harmful to customers.

“Increasing competition in the postal services market is a reality that the CWU need to deal with.”

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