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On its website, the Communication Workers Union, one of UNI's affiliate in the UK, welcomes Lord Mandelson's statement confirming that the Postal Services Bill will not be heard by Parliament.

CWU general secretary Billy Hayes said: "The government has not only looked at market forces but has listened to the British public.

"Privatisation was a deeply unpopular suggestion from day one.

"We now look forward to resolving issues which remain around pensions, regulation and modernisation.

"The CWU is as committed as anyone to improving industrial relations in Royal Mail. Now that this uncertainty has been lifted there is a great opportunity to step up a gear in modernising Royal Mail in the public sector.

"It's important that the government doesn't walk away from Royal Mail. Changes are needed on modernisation, pensions, regulation and industrial relations which do not need primary legislation but which do need government support.

"Lord Mandelson referred to the 2007 Pay and Modernisation Agreement. That is the very agreement that Royal Mail is ignoring and the union wants to return to in order to negotiate modernisation and improve industrial relations."