The prime minister is calling for a resolution to the problem.

The Royal Mail, along with consumers, will be hurt if a national postal strike goes ahead, the prime minister has warned.

Gordon Brown said the firm could lose large contracts to other parcel delivery providers, such as Parcel2Go, which may have long-term implications for its future.

The Communication Workers Union is expected to set the dates for a national strike today, if a last-minute peace offering to the bosses of the Royal Mail fails to bear fruit.

"If Royal Mail start to lose major contracts like those of some of the major firms in this country, it will be difficult for them to regain these contracts over a short period of time," Mr Brown said.

An early-day motion supporting the industrial action has been signed by more than 60 MPs, who want the government to step in and end the dispute.

One politician who has not given his backing to the strike is business secretary Peter Mandelson.

He said such action would defy logic and could have a massive impact on struggling companies and consumers.

Written by Lucy Pritchard


Article Added: 15/10/2009 08:58:19