Royal Mail faces FY loss as strikes get green light

Royal Mail has warned it could face a full-year loss as over 115,000 postal workers are set to partake in the biggest strike of summer, after calling for a “dignified, proper pay rise”. The Communication Workers Union (CWU), which represents Royal Mail Group workers, confirmed that workers will take strike action on Friday 26 August, Wednesday 31 August, Thursday 8 September and Friday 9 September. The decision follows the union’s recent ballot for strike action, which saw members vote in favour of the strikes by 97.6% on a 77% turnout, marking the biggest mandate for strike action since the implementation of the 2016 Trade Union Act. The union said it is demanding that Royal Mail Group make an “adequate pay award that covers the current cost of living increases for our members”. The CWU noted that while the management of Royal Mail Group “decided to impose a 2% pay rise on its employees through executive action…in an economic climate where inflation has soared to 11.7%, the imposition would lead to a dramatic reduction in workers’ living standards”. CWU general secretary Dave Ward said: “Nobody takes the decision to strike lightly, but postal workers are being pushed to the brink. There can be no doubt that postal workers are completely united in their determination to secure the dignified, proper pay rise they deserve. “We can’t keep on living in a country where bosses rake in billions in profit while their employees are forced to use food banks. When Royal Mail bosses are raking in £758 million in profit and shareholders pocketing in excess of £400 million, our members won’t accept pleads of poverty from the company.” He added: “Postal workers won’t meekly accept their living standards being hammered by greedy business leaders who are completely out of touch with modern Britain. They are sick of corporate failure getting rewarded again and again. The CWU’s message to Royal Mail’s leadership is simple – there will be serious disruption until you get real on pay.” In response, the Royal Mail said: “This decision by the CWU is an abdication of responsibility for the long-term job security of its members. In more than three months of talks, CWU has failed to engage meaningfully on the business changes required. “The negative commercial impact of any strike action will only make pay rises less affordable and could put jobs at risk. The CWU has a responsibility to recognise the reality of the situation Royal Mail faces as a business, and to engage urgently on the changes required. Royal Mail remains ready to talk with the CWU to try and avert damaging industrial action and prevent significant inconvenience for customers. But any talks must be about both change and pay.” It added: “Following the conclusion of negotiations with the CWU, including completing our mutually agreed Dispute Resolution Processes, Royal Mail announced it would award CWU grade colleagues in the UK an unconditional 2% pay increase, backdated to 1 April 2022. A further 3.5% increase is available, subject to agreeing on a series of changes and including a new 'above and beyond' bonus. “The CWU rejected this offer, worth up to 5.5%, which would add around £230 million to Royal Mail annual people costs at a time when the business is already loss making – in the Q1 trading update published on 20 July, Royal Mail announced it was losing a million pounds a day and the proposed pay deal adds more than half a million pounds a day to that figure. This can only be paid for with meaningful business change.” Royal Mail added it has contingency plans in place and will be “working hard to minimise disruption and restore normal service as soon as possible”.

Royal Mail faces FY loss as strikes get green light

The Communication Workers Union confirmed that workers will take strike action on Friday 26 August, Wednesday 31 August, Thursday 8 September and Friday 9 September

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