My Lords, salaries at the top level are related strictly to performance-related agreements, and payment is made only on the basis of achievement. The House will recognise that the disputes and difficulties will affect the hitting of such targets.
More generally, my noble friend, with the vast trade union background which he brings to bear on these matters, will recognise that there have been improvements in industrial relations in Royal Mail. This setback has sprung from difficulties over one issue alone—the question of the London allowance. In other parts of the country, great progress has been made, with the assistance of my noble friend Lord Sawyer. All is not gloom. At present, we are in difficulties, but I reiterate the point that the two sides are meeting again today. We hope for a successful outcome.