Royal Mail warns taxpayer bailout may be needed to keep service afloat



The company welcomed the cancellation of the planned February strike, intending “to use this time and space for further discussions to try to agree a deal”. Staff will no longer strike on Thursday, 16 February, after Royal Mail challenged the way the industrial action had been called, citing a “legal error”. General Secretary Dave Ward said workers faced the “biggest ever assault” on jobs, terms and conditions “in the history of Royal Mail”. Postal worker Hannah Carrol, who is part a strike at Whitechapel in East London, said she wanted to see wages rise in line with the growing cost of living.

Martyn James notes that while Royal Mail does offer compensation to those suffering from a poor delivery service, it only applies in certain sets of circumstances. The union also objected to proposed changes to working conditions, including compulsory Sunday working. “The proposed agreement will now be considered by the executive of the union before being voted on by the union’s membership. The postal company and the Communication Workers Union have reached an “in principle” agreement over pay and employment terms.

  1. It comes after the Communication Workers’ Union and Royal Mail failed to reach an agreement over pay and conditions in the face of soaring inflation.
  2. However Royal Mail says it “does not recognise” the pay cut figures and argues the job losses have been met through voluntary redundancy.
  3. If you don’t have your passport, then you can’t go on your overseas holiday, which could result in you losing thousands of pounds, on top of the stress involved.
  4. Due to the strike action, the Royal Mail has brought forward the last posting days for delivery before Christmas.

“We committed to protecting pay for all managers who stay with Royal Mail, and the vast majority have seen an increase in their earnings. Royal Mail insiders insisted that the company was focused on USO reform and did not want to pursue a taxpayer bailout unless absolutely necessary. The Unite union says 2,400 managers will work to rule on July 15-19, which means they will follow the official rules and hours exactly to reduce their output and efficiency. “You’ll need to spell out what has happened and why the strike has resulted in your loss though,” he concludes. Royal Mail workers staged a series of walkouts last year, including in the lead up to Christmas.

Christmas post hit as Royal Mail workers strike

While the pay deal – which was reached after workers staged 18 days of strike action – will cost about £600m, IDS said it would largely be covered by cost cuts over the next two years. The CWU said management intended to impose a 2% pay rise that would be a “serious real-terms wage cut” for postal workers because of soaring inflation. Postal workers have launched a 24-hour strike in a long-running dispute over pay and conditions, with industrial action planned for the coming weeks. Royal Mail was forced to rely on a skeleton staff to deliver only “essential items” on Friday after 115,000 postal workers went on strike in the year’s biggest industrial action so far.

Female entrepreneurs: Do women run their businesses differently than men?

The delivery of travel money and Travel Money Cards ordered online will be delayed. This will apply whether you have opted for your travel money to be delivered to your home address or to a nominated branch. Some branches may not be able to accept mail on days of industrial action if they reach their acceptance capacity.

2When Royal Mail strikes are happening and how it’ll affect your post

The vast majority of post office branches will be open as usual with branch services operating as normal except those described on this page. Where possible, try to bring any cheques in using the cheque deposit envelope service or cash your cheques two or three days before the date of industrial action to avoid delays. The timed guarantees for all Royal Mail and Parcelforce Worldwide services will be suspended from the day before strikes take place and will remain suspended until services return to normal. “We call on the CWU leaders to cancel their planned strike action and accept our invitation to enter talks through Acas without further delay. “Royal Mail is losing £1m a day and must change faster in response to changing customer demands.

When are the last posting days for delivery before Christmas?

They are being driven entirely by a culture of greed and profiteering which has seized a 500-year-old essential service, driving it close to ruin. Get the best money-saving tips, tricks and deals sent straight to your inbox every week. If you don’t have your passport, then you can’t go on your overseas holiday, which could result in you losing thousands of pounds, on top of the stress involved. You can change these settings by clicking “Ad Choices / Do not sell my info” in the footer at any time. According to Glassdoor, the average salary for a Royal Mail postal worker is around £25,000.

It says strikes have added £100m to its losses, and has announced plans to cut up to 10,000 jobs. The Post Office is a separate business and post offices are expected to open, although some have closed during previous strikes. The card company Moonpig has advised customers to order early where possible but said its gifts and flowers use different delivery services so would be unaffected by the strikes. The CWU argues that staff should receive a pay rise in line with inflation in recognition of their work delivering post during the coronavirus pandemic.

Royal Mail said that, during the strike, 379 of its 1,200 delivery offices were processing mail and were staffed by about 4,000 managers and “supported by contract hauliers”. It said their priority was “delivering essential items”, including prescribed medicines, Covid test kits and special delivery packages. The study also found that 72% believed company executives should have their pay capped at 10 times the average worker’s wage. “Right now in this country, corporate failure gets rewarded time and time again, with no consequences for the poor running of services people rely on,” said Ward. We may not be able to send applications for identity services on the day if they are made in branch on the days of industrial action.

How to communicate potential delays to your customers

But the strike will leave millions of households without important letters, parcels and prescriptions. Around 115,000 Royal Mail employees will launch four days of industrial action on Friday 26th August and Wednesday 31st, and again on Thursday September 8th and Friday 9th – the first walk out of its kind since 2009. If you have an important piece of post that you either need to send or receive, then you do have some limited options which can reduce the chances of the postal workers strike impacting you. One of the inevitable results of the strike is that you will not receive the post they are expecting on the days affected by the industrial action. Workers who collect, sort and deliver letters and parcels for Royal Mail are taking industrial action on 9, 11, 14, 15, 23 and 24 December.

The CWU union accuses the Royal Mail company of planning structural changes, which would transform employees in secure, well-paid jobs into a “casualised, financially precarious workforce overnight”. Royal Mail said it had ‘contingency plans in place’ to minimise the upcoming disruption, but has admitted that delays are very likely. Covid testing kits, medical prescriptions, special deliveries and tracked parcels will be ‘prioritised’, but there are no guarantees they will arrive on time. Royal Mail has reported a £1bn loss, with bosses blaming strike action by workers and a failure to increase productivity for its poor performance during a year in which it cut 10,000 jobs. The CWU has accused Royal Mail of planning structural change, which it has said will see cuts to workers’ sick pay, delayed arrival of post by three hours and inferior terms for new employees.

They also said there was “no grounds for industrial action” and accused Unite of putting out misleading claims over additional job losses to members. Unite said Royal Mail managers will take their contracted breaks, start and finish exactly on time and take their rest days, leaving no manager on site. Unite claims the industrial action will “impact the postal and parcel service immediately xm group review across Great Britain and Northern Ireland”. Trade union Unite said the industrial action will impact the postal service across the UK “immediately”. Germany is moving to deliver letters on alternate days with a target of 95pc of letters to be delivered within three days. The rapid decline in sending letters, coupled with crippling strike action, have sparked a crisis at Royal Mail.

He described the plans as an “asset-stripping business plan” that will lead to the break-up of the company. Letters will not be delivered and some parcels will be delayed, the Royal Mail has warned. Chairman Keith Williams has said that the firm is losing £1m a day as parcel volumes fall and efforts to modernise the business stall. A fresh twist in the corporate drama unfolded on Thursday when it emerged that the Czech billionaire Daniel Křetínský has hopes to increase his company’s stake in Royal Mail from 22% to 25%. Royal Mail executives have threatened to split the company if workers do not agree to its proposals. “Without modernisation, we die,” its non-executive chair, Keith Williams, told the Guardian.

The unions has warned of disruption to post and parcels across the UK, though the Royal Mail says it has “contingency plans” in place. However Royal Mail says it “does not recognise” the pay cut figures and argues the job losses have been met through voluntary redundancy. Royal Mail has argued that its performance is being hampered by its universal services obligations. Ofcom is currently reviewing the rules but any changes will ultimately require government approval.