Cost-cutting measures at a Royal Mail depot in Watford have created chaos for local businesses, with fears they could “hit the wall”.

In scenes reminiscent of the industrial action held by postal workers last year, a backlog of 150,000 letters and parcels has built up at the Ascot Road office, following the implementation of a new sorting and delivery system – Pegasus.

But, despite a series of meetings with officials from the Communication Workers’ Union (CWU) yesterday (Thursday), management have vowed to continue with the new sorting and delivery system.

Pegasus is a computer-generated programme that has cut the number of delivery walks in the WD17, 18, 19, 24 and 25 postcodes from around 100 by 25.

Addresses were then redistributed around the remaining walks, but residents and businesses have complained this had led to a delay of several days in receiving mail.

Trevor Flowers, CWU communication officer, admitted workers were subject to “animosity” from the public, but said industrial action was not being considered.

Mr Flowers said: “Because it’s causing so much of a problem to customers, we asked management to go back to the original system and phase in the new system, postcode by postcode. They have refused to do that. They don’t appear to be clearing it, they’re treading water.

“Royal Mail look to Watford for savings because it’s one of the biggest delivery offices. There’s more savings to be made here. But at the end of the day, it’s the public who are suffering.

“It is to save money, but that’s not a bone of contention. It’s the way it’s being done. Given time it will, but how much time have we got?”

One postman, who asked not to be named, said: “Our lads are getting slaughtered by the general public who are blaming them but it’s not of our making. No postmen are to blame for what’s going on in Watford.”

Voluntary overtime is available to workers, while agency staff have also been drafted in to help clear the backlog, which could take up to three weeks. Meanwhile, Eric Hamilton, owner of Prestige Hygiene, has resorted to collecting his mail from the depot every day.

He said: “It’s a complete shambles. This delivery office seems to be a continual bed of difficulty and trouble. Here we go again.”

Pub chain JD Wetherspoon, which has its head office in Reeds Crescent, Watford, has formally complained to Royal Mail after receiving irregular deliveries over the past week.

In addition, Daniel Scott, 32, the owner of Mail Boxes Etc in St Albans Road, said no post had been delivered to his office for a week.

He said: “It’s a delivery system where there’s no delivering. Some customers are relying on cheques and orders to keep their business going. If they’re not getting mail, especially in this economic climate, they’re facing serious potential problems.

“Nobody seems to be wanting to take responsibility for it. There’s no communication with customers. It’s just not acceptable.”

Janet Ball, 56, from Oxhey Road, said her PO Box at Ascot Road had not been emptied for a week and predicted many businesses could “hit the wall”. She failed to receive a single card for her birthday, on Monday.

Ms Ball said: “People are waiting for letters about hospital appointments. For local businesses, this is dreadful.”

Watford Mayor Dorothy Thornhill has emailed Royal Mail boss Adam Crozier, demanding to know why “it’s Watford again”.

She said: “We’re back to square one. What I don’t understand is why is it always Watford?

“They are miserably failing and it’s affecting local businesses. In the current recession, it could mean the difference between firms going under and that’s not an exaggeration.”

Furthermore, Watford MP Claire Ward has demanded showdown talks between employees and management, for the sake of customers.

She said: “Royal Mail nationally need to start looking at how Watford is run. These problems cannot continue because it is having a devastating impact on businesses in particular.

“It’s absolute madness. The real issue is the impact on businesses, particularly in this economic climate. It’s about time they had some proper discussion between management and employees to the benefit of the customer.”

A Royal Mail representative apologised for the “short-term disruption”.

He said: “The vast majority of walks are working normally and deliveries are being made to addresses every day, but there is a small backlog – less than an average day’s volumes for Watford delivery office – following some bedding-in of the delivery revision on some walks.

“We have drafted in extra resource to deal with this and we anticipate things being back to normal very quickly.

“The revision specifically addresses inefficiencies in deliveries and ensures that we are providing customers with the most efficient service.”