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As the second 48-hour postal strike draws to a close this morning, union leaders and Royal Mail executives are no nearer reaching agreement.

A third strike beginning on October 15th is now threatened by the Communication and Workers Union (CWU) as staff begin to tackle the large backlog of mail left unsent so far this week.

A statement on Royal Mail's website admitted that the firm was "very disappointed" by the latest collapsed talks.

"We are currently assessing the impact that this will have on services, and will communicate this as soon as possible," it said, before admitting that "the situation remains very serious and our ability to provide services remains extremely limited".

The CWU has rejected a 6.9 per cent pay rise deal on the grounds that it contains "unacceptable strings" including a reduction in pensions benefits.

It has also attacked Royal Mail's modernisation plan, which it fears will result in the loss of 40,000 jobs, and the company's "flexibility proposals".

Royal Mail chief executive Adam Crozier told yesterday's Today programme that union leaders were making unreasonable demands on the issue.

"We're pretty much there on everything else, and the issue on flexibility is we want people to work all the hours that they're paid to work across the working work," he said.

"I doubt there is a company out there anywhere in this country that does not ask the people to work all the hours they're paid for. And for the union to say they can't accept that is frankly not a tenable position."

CWU deputy general secretary Dave Ward responded: "To get their work done within their hours postal workers are carrying more mail than they should, not taking their breaks, and using their own cars to take mail out on deliveries. This all ensures flexibility for Royal Mail."