Mail in chaos as postmen strike

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Pickets were on duty outside the main sorting offices including Mount Pleasant and Nine Elms.

Royal Mail managers were called in to keep Crown Post Offices open.

The 24-hour stoppage - the first strike for 11 years - will ruin weekend postal services and have a knockon effect into next week.

Businesses, which make up nine out of 10 Royal Mail customers, suffered major disruption with orders and deliveries lost and delayed. Royal Mail issued a blanket appeal to customers not to post.

Analysts predict the oneday strike will cost the UK economy £25 million.

The strike gives Gordon Brown his first taste, as Prime Minister, of a major public sector dispute.

Leaders of the Communication Workers Union warned of more and longer strikes to come if the dispute is not settled.

CWU general secretary Billy Hayes said: "There has been very strong support for the strike across the country."

The union has rejected a 2.5 per cent pay offer and says Royal Mail modernisation plans will lead to the loss of 40,000 jobs.

Royal Mail chief executive Adam Crozier said: "We will do all we can to mitigate the impact of strike action but we are very disappointed for our customers."

He insisted the company could not afford to increase pay any further and said the union had failed to grasp the harsh commercial reality that a strike would only benefit rivals.

The Federation of Small Businesses said today: "A cheque delayed in the post can mean the difference between life and death for a small business."

Colin Stanbridge, chief executive of the London Chamber of Commerce, said the strike would cause "real hardship".

But James Greenbury, chief executive of rival post firm DX Group, said: "As the only major competitor with its own independent delivery network for mail, we have received significant interest from customers and new prospects."