Royal Mail has revealed that it requires £2bn to modernise the business, and CWU claim that they have been told of plans to cut £370m from the company by the spring.
Billy Hayes, general secretary of the CWU, said: "They have given us these figures, although we accept that they are projected. But what is clear is their intent to cut £370m, increase automation and turn more full-time workers into part-time ones. The only way they can make these savings is by cutting jobs."
A Royal Mail spokesman denied that any figures had been issued: "These are not our numbers and they don't result from any plans that we have in place. Royal Mail will almost certainly handle a smaller share of the UK's mail in the future. It's too early to predict the impact on jobs but, obviously, we will become a smaller rather than a bigger company."
He continued: "We need around £2bn to modernise and we're facing tough price controls from the regulator that don't allow anything like as much investment as we need."
Royal Mail is already facing increased competition as a result of full deregulation, introduced on 1 January 2006. TNT Mail has confirmed that it has several large contracts in the pipeline, while UK Mail are in discussions with four large telecoms and communications companies to begin mailing in February and March.
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