Two Consignia directors have decided not to accept recommended pay rises of 10 per cent.

Although the proposed increases for chief executive John Roberts and managing director of mail services Jerry Cope were approved by the DTI, the directors have declined to accept them at a time when Consignia is facing a potentially damaging dispute over pay involving over 145,000 postmen and women.

Forum Response: Communication Workers Union

Billy Hayes, general secretary of the Communication Workers Union, told ePolitix.com: "Common sense appears to have prevailed in this case - albeit at the last minute. However, if the DTI is prepared to agree such inflation-busting pay increases for postal bosses, then I see no reason why the department should not also support our case for a five per cent increase for postal workers - which is moderate by comparison."

John Keggie, deputy general secretary of the Communication Workers Union, also told ePolitix.com: "Considering the difficulty we have had in getting the business to consider a five per cent pay rise for postal workers, the announcement of ten per cent increases in boss' pay was insensitive and very poorly timed.

"We are glad to see that Mr Roberts and Mr Cope have shown some restraint in turning down these huge hikes in pay. However, instead of rewarding managers for failure it is high time the business rewarded its foot soldiers for their efforts.

"Postal workers are taking home less than £200 a week in many cases. We need to bring their wages up to an acceptable level and bring the business back into profitability before the business can think about heaping further rewards on the people at the top."