Postal strikes 'threatening small firms'

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Small firms are being caught in the crossfire in the row over jobs and pay at Royal Mail, a leading business group has warned.

The Federation of Small Businesses said strikes by postal workers were putting jobs at risk and urged the Government to intervene to end the dispute.

Last night, members of the Communication Workers Union launched a fresh wave of industrial action, which will be staggered over the next two weeks. The union said the aim was to hit Royal Mail hard at minimal cost to its members.

But FSB spokesman Matthew Knowles said: 'Our research has found 94 per cent of small firms use the Royal Mail exclusively because the other mail providers do not see small businesses as lucrative,' he added.

'The economic impact of this strike cannot be under-estimated.'

Postal workers will take part in two 24-hour walkouts, with different groups of staff taking action on separate days.

They have already rejected a 2.5 per cent pay offer, arguing that modernisation plans could lead to 40,000 jobs being lost.