FRESH strike action at the Post Office is in the pipeline over pension changes that will cost workers thousands of pounds in retirement income, their union warned yesterday.

The Communications Workers Union (CWU) is set to announce industrial action next week after its executive has met to discuss the ongoing dispute.

With the service at “crisis point” due to branch closures and job losses, Post Office staff staged a 24-hour walkout last month.

The union called on the government to intervene to reverse management proposals to close the company’s defined benefit pension scheme. Trustees narrowly approved the closure plans in a five-to-four vote.

Union leaders said the pension scheme, which is in surplus, is set to close next April, affecting around 3,500 people.

CWU general secretary Dave Ward said: “The Post Office’s decision will cost our members thousands of pounds in their retirement.

“It’s wholly unjustified and we’re seeing a publicly owned company effectively stealing money from people who have diligently saved for their retirement. The government cannot wash its hands of this.”

The pension scheme itself has a surplus of £143 million and, as the government has said, is the best funded in the country, Mr Ward pointed out.

“There is absolutely no need to close it,” he insisted.

“It’s more cuts from this irresponsible management team, who seem obsessed with managing decline instead of encouraging a thriving Post Office.

“We remain in dispute with the Post Office over these plans, together with thousands of job losses and the privatisation of its flagship branches across the country which we are seeing this year.

“We will be announcing strike action following a meeting of our executive next week.”

Unite said over 700 Post Office managers will also be taking further industrial action within the next month.

National officer Brian Scott called on the Post Office to reverse the decision to close the pension scheme.

He said: “This closure will affect Post Office employees and will take away their long-term benefits upon which they have invested many years of service. They stand to lose thousands of pounds in retirement income.

“The government has a responsibility for this and needs to accept this responsibility as the shareholder.

“The decision gives us no alternative other than to undertake further industrial action, which will take place within the next month.”

Post Office communications and corporate affairs director Mark Davies said the company was “disappointed” that unions are talking about strikes rather than Acas talks.