Postal strike 'will threaten business'
THE looming postal strike could bring Ulster's small businesses to their knees, concerned political parties were predicting last night.
Royal Mail bosses and the Communication Workers' Union are locked in a dispute over modernisation plans and possible job cuts.
Strike action is planned for Friday and Saturday this week, with rolling action to follow.
The DUP MP has warned that strike action will have "a devastating impact" upon small businesses throughout Northern Ireland, with more than 90 per cent of them only using Royal Mail to carry out their business.
Sinn Fein has said: "The North's economy cannot sustain a protracted postal dispute."
In February 2006, an 18 day strike in Belfast alone, had serious consequences for businesses throughout the country.
With the main sorting depot at Tombe Street out of action, a backlog of seven million items developed.
Having regular postal deliveries is particularly important for small businesses.
UK businesses send and receive about 600 million cheques a year, according to the banking industry.
The Federation of Small Businesses (FSB) has said its members suffer particularly badly from such action because they are more likely to rely exclusively on Royal Mail.
"A cheque delayed in the post can mean the difference between life and death for a small business," an FSB spokesman said.
DUP MP David Simpson commented: "At the time of last year's postal strike, the FSB carried out a survey, the results of which demonstrate just how serious a loss in postal services, even for a short period of time, can be for the Province.
"The survey showed that 88 per cent of small businesses send mail every single day and that 94 per cent of small businesses use Royal Mail exclusively.
"The loss of postal services, even for a short period of time has the capacity therefore to hit small businesses in Northern Ireland particularly hard.
"We need to remember that we are dealing with businesses where cash flow presents a particular concern.
"If certain cheques are not received on time, then employees cannot be paid and that will obviously have a devastating knock-on effect for the Ulster economy."
He said the union and Royal Mail must get down to serious talks and small businesses must make arrangements, to prepare for the worst.
Sinn Fein Foyle MLA Raymond McCartney said: "The months of October, November and December are crucial to many businesses to enable them to sustain jobs and services for the other nine months of the year."
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Tuesday 29 May 2012
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