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July 27, 2007

Q&A: Postal strike and you

Post Office worker on strike

Strike action starts on Wednesday

A two-week campaign of staggered strike action across the UK postal service begins on Wednesday. It follows a series of shorter strikes in the past month. BBC News examines how the strike will effect you and your business. Read original article.

What will this strike action mean for postal services?

Each division within the Royal Mail has been allocated a different day to strike, an action which is designed to create continuous disruption to the UK's postal service over that period.

It is conceivable that post could be seriously delayed if it is caught up in strikes at different stages of the postal chain.

On the flip side, you could be lucky and your post could make it through normally.

However, for those waiting on urgent items of post - whether businesses or private citizens - the risks of adopting a wait-and-see approach may be too great.

I am a small business owner - what could the strike mean for me?

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 at the time of the first 24-hour stoppage.

The British Chamber of Commerce says that firms who still rely on cheques may step up their efforts to move to online payments and consider using the services of Royal Mail's rivals.

Is there any insurance I can take out?

Unfortunately, the answer is no.

Payment delays and other costs incurred by a postal dispute are not covered by business interruption insurance, the Association of British Insurers (ABI) told BBC News.

Business interruption insurance is designed to pay out if a business has to shut due to fire, flood or some other mishap.

I have sent a cheque off to my gas supplier to pay a bill. How worried should I be that they will not receive it?

If you fear your bill becoming overdue the best advice is to phone your supplier and explain the situation.

Tell them you have put the cheque in the post but it may be delayed, so that they can then enter the details of your call on your account file.

A British Gas spokeswoman told BBC News: "We will factor in that there is a postal strike but if people are worried they can call us to discuss the matter."

British Gas urged customers who normally pay by cheque to consider using its online payment service to avoid delay.

I am going on holiday in a few weeks and waiting for a passport to be delivered. Will it be delayed?

The good news is that the UK passport service says that there will be no delay in deliveries.

The passport service uses a private company SMS for passport delivery.

SMS will not be on strike.

But documents, such as birth certificates, submitted in support a passport application are returned to the applicant through the Royal Mail.

As a result, these documents could be delayed.

But there is an option to have your supporting documents returned to you via SMS.

My daughter is about to apply for her first passport - will this be delayed?

People who apply for a passport during the strike period may encounter delays.

Allow extra time for applications to reach the passport service.

The Passport Service suggests that people may wish to submit their applications via the Post Office's Check and Send service, as these are delivered via Royal Mail Special Delivery rather than standard post.

There is a £7 fee for the check and send service.

What is the dispute about?

Essentially, it is over pay and potential job cuts.

The Communication Workers' Union (CWU) has rejected a 2.5% pay offer and warned that Royal Mail's modernisation plans will lead to 40,000 job losses.

Postal workers' pay should rise to the national average over the next five years, the union argues, but Royal Mail says this would amount to a 27% increase which it could not afford.

The Royal Mail says that it has been losing business to its rivals since the postal market was opened to competition, and urgently needs to modernise its business practices.

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