Mandelson 'undermining' post talks

The Communication Workers Union said a statement given by the Business Secretary to the Lords would damage 11th hour negotiations with the Royal Mail.

Marathon talks between the two sides continued throughout the day, with time running out on reaching a deal to head off national walkouts on Thursday and Friday.

Lord Mandelson said the need for modernisation of the postal service was clear as a result of alternative technologies such as email, text messaging and direct debits taking away some of the Royal Mail's business. "If it stands still, this company faces terminal decline," he said.

The management and union had agreed to three of the four phases of a modernisation plan to replace "outdated working practices", he told the Lords. In some areas, especially London, there had been "repeated non-co-operation and industrial action to frustrate the agreement's implementation" amid union claims the management was going beyond the terms of the deal, he said.

Lord Mandelson warned a walkout would be "totally self-defeating" and added that it would be easier for conciliation service Acas to play an effective role in ending the dispute if the CWU called off the action.

Billy Hayes, CWU general secretary, said: "Peter Mandelson's re-reading of old Royal Mail press releases helps no one. Repeating the management mantra that is blatantly untrue is extremely unhelpful. It was only a few months ago that Lord Mandelson said Royal Mail management was unable of creating an effective industrial relations environment. He now blindly backs that same management.

"While the CWU and management are working hard to reach an agreement, Lord Mandelson is misrepresenting the facts to Parliament and undermining any progress being made in the talks. His comments about the dispute being centred on London are ill-informed and untrue. A 76% yes vote was returned in a nationwide ballot, which is proof of this."

Labour left-winger John McDonnell, MP for Hayes and Harlington, described Lord Mandelson's statement as "provocative".

He added: "Mandelson is just making things worse and if he can't say something constructive, a period of silence from him would be extremely welcome. Mandelson's interventions are aggravating the situation and hindering, not helping a settlement. This may be part of a political electioneering strategy for Brown and Mandelson to be seen as tough by taking on a union but it is looking more likely to be edging towards a Callaghan winter of discontent moment."